The Best Home Insurance Quotes in Scarborough 

What risks do homeowners face in Scarborough?

Scarborough homeowners in 2025 face a growing number of risks, with severe weather events being a primary concern. Heavy rainfall, flooding, and windstorms are becoming more frequent, particularly in areas near Lake Ontario and low-lying neighbourhoods. These risks are exacerbated by aging infrastructure and urbanization, which can overwhelm drainage systems during extreme weather.

According to the Insurance Bureau of Canada (IBC), 2024 was the most expensive year on record for weather-related damages, with $8.55 billion in insured losses nationwide. Flooding in the Greater Toronto Area, including Scarborough, accounted for a significant portion of these claims. This trend highlights the increasing financial impact of climate change on homeowners.

Daniel Ivans, an insurance expert with Rates.ca, explains that flood risks play a significant role in determining premiums. “If your home is in an area prone to flooding, water coverage can account for up to 10% of your total premium,” he notes. In Scarborough, neighbourhoods near waterways or with older sewer systems are particularly vulnerable.

As climate-related risks continue to rise, Scarborough residents should stay informed and prepared to protect their homes and finances. Consulting with insurance providers and comparing policies can help ensure adequate coverage for the unique challenges faced in this region.

How did we get these numbers? Check out our Home Insuramap methodology.

See our Home Insuramap methodology.

Why is Scarborough home insurance so expensive in certain neighbourhoods?

Home insurance premiums in Scarborough vary significantly due to factors like crime rates, proximity to risks and the condition of homes. For example, M1M ($1,704) and M1N ($1,568) are among the most expensive areas. These neighbourhoods, including Cliffcrest and Birch Cliff, are located near the Scarborough Bluffs, where risks such as flooding, erosion and landslides significantly increase insurance costs. Additionally, older homes in these areas often require more maintenance, further driving up premiums. Areas prone to natural disasters or with older infrastructure tend to have higher premiums.

Basement flooding is another significant factor affecting home insurance costs in Scarborough. Basement Flooding Study Area 52, located in South Scarborough and roughly bound by Highway 401 to the north, Warden Avenue/Kennedy Avenue to the west, Brimley Avenue/Bellamy Road to the east, and Lake Ontario to the south, has experienced frequent basement and surface flooding during extreme rainfall events. According to the City of Toronto, these issues are caused by overloaded sewer systems and inadequate drainage infrastructure. The city is recommending solutions such as increasing sewer capacity and improving drainage routes to mitigate flooding problems, but these projects are still in the planning stages, leaving homeowners in these areas at higher risk and with higher premiums.

In contrast, areas like M1V ($1,213) and M1X ($1,237) are some of the most affordable for home insurance. These neighbourhoods, such as Milliken and northeastern Scarborough, are characterized by newer homes equipped with modern safety features, which reduce the likelihood of claims. Lower population density and crime rates in these suburban areas also contribute to their lower insurance premiums. Additionally, proximity to emergency services like fire and police stations in these areas helps reduce risk.

Overall, the cost of home insurance in Scarborough is influenced by a combination of location-specific risks, the age and condition of homes, and proximity to emergency services. While Scarborough’s average home insurance cost is lower than the Ontario average, specific postal codes like M1M and M1N highlight how natural risks, basement flooding, and older infrastructure can drive up premiums, while areas like M1V and M1X benefit from modern construction and lower risk factors.

See more of the factors that could affect you.

Choosing the right home insurance policy in Scarborough

If you own a home in Scarborough, having home insurance isn’t legally required. However, most mortgage lenders in Ontario won’t approve a loan unless your property is insured. Even if you’ve fully paid off your home, it’s still a good idea to protect what is likely your most valuable asset. Home insurance provides peace of mind and financial security in case of unexpected events like fires, floods, or theft.

The key question is: what type of home insurance policy is right for you? And what specific protections are available for your Scarborough home? Below, we break down the main types of home insurance and what they cover, so you can make an informed decision.

Types of home insurance in Scarborough

Home insurance policies in Scarborough come in three main types, each offering different levels of coverage and price points. As expected, more comprehensive coverage comes with higher premiums, while basic policies are more affordable.

• Named perils: This is the most basic type of home insurance, covering only specific risks explicitly listed in the policy, such as fire or wind damage. It’s often the most affordable option but offers limited protection. This type of policy is ideal for homeowners looking to save on premiums while covering essential risks.
• Broad form: Broad form insurance provides more extensive coverage than named perils. It includes all-risk coverage for your home’s structure but limits coverage for personal belongings to specific risks listed in the policy. It’s a middle-ground option for those seeking balanced protection and affordability.
• Comprehensive: This is the most inclusive type of home insurance, covering almost all risks to both your home and personal belongings, except for exclusions explicitly stated in the policy. Comprehensive insurance is ideal for homeowners who want maximum protection and are willing to pay higher premiums for peace of mind.

Who gets covered

• Spouse and relatives: Your home insurance policy typically covers your spouse and any relatives living in your home.
• Dependents: Dependents under the age of 21, including students temporarily living away from home (e.g., in a university dorm), are usually covered under your policy.

What gets covered

• Property and dwelling: This coverage protects your home and other structures on your property, such as garages or sheds, from risks like fire, theft, vandalism, and water damage. If you have additional structures, you may need to discuss extra coverage with your Scarborough insurance broker.
• Contents and personal property: This protects your belongings from theft or damage. High-value items like jewelry or artwork may require additional coverage, known as riders or endorsements, to ensure they’re fully protected.

Standard home insurance coverage in Scarborough

Whether you choose a named perils, broad form, or comprehensive home insurance policy, it should include the following essential coverages:

Additional Living Expenses (ALE) coverage

Some Scarborough homeowners may need temporary housing if displaced by an insurable event. Additional Living Expenses (ALE) coverage will help pay for those expenses. Some policies will pay for temporary rent or hotel bills, including food, up to certain limits. You'll also be reimbursed for any food that spoils in your home while you're away.

Here’s what ALE typically covers:

• Out-of-pocket expenses: If you’re forced to temporarily leave your home, your insurance may cover costs like accommodation, meals, moving, laundry, transit, pet boarding, and storage.
• Fair rental value: If you rent out part of your home, such as a basement apartment, and your tenant has to move out due to a covered event, your policy may reimburse you for the lost rental income.
• Prohibited access: If your home becomes inaccessible due to a government-mandated evacuation or a safety threat, your insurance may cover your temporary living expenses.

Liability coverage

Liability coverage is a critical part of any home insurance policy in Scarborough. It protects you financially in case of accidents or damages involving others. Here’s what it typically includes:

• Personal liability: This coverage protects you if someone is injured or their property is damaged due to your actions. For example, if a visitor slips on your icy driveway, your policy can cover medical bills or legal fees. Coverage amounts typically range from $100,000 to $5,000,000, depending on your policy.
• Voluntary medical payments: If someone is unintentionally injured on your property, this coverage can pay for their medical expenses, even if you’re not legally liable. Coverage limits usually range from $1,000 to $10,000.
• Voluntary property damage: This protects you if you accidentally damage someone else’s property. For example, if your child (under 12 years old) breaks a neighbour’s window, your policy can cover the repair costs. Coverage typically ranges from $500 to $6,000.

Commonly covered perils

Commonly covered perils in Scarborough – whether you choose basic, broad, or comprehensive coverage – typically include the following:

• Fire: Regardless of the cause, your insurance will cover the costs of replacing, rebuilding, or repairing your property and recovering your belongings.
• Smoke: If smoke damages your property, you’ll be covered. However, the smoke must originate from a malfunctioning cooking or heating device, not from a fireplace.
• Lightning or electrical current: Lightning strikes can damage your home’s wiring, appliances, and electronics. Your policy will cover the cost of repairs or replacements. Damage caused by other electrical currents is also typically covered.
• Explosion: If your property is damaged or destroyed by an explosion, your insurance will cover the necessary repairs or replacements.
• Riot: If a riot near your property causes damage, your insurance will pay for repairs or replacements.
• Theft and vandalism: If your home is robbed, your policy will cover the replacement of stolen items. Similarly, it will cover repairs if your home is vandalized.
• Transportation: If personal property, such as a laptop, is damaged while temporarily away from your home, repairs or replacements will be covered. This also applies to fixtures or fittings in seasonal storage or being repaired.
• Water damage: This covers damage caused by water leakage from indoor plumbing, heating, air conditioning, sprinklers, and similar appliances. However, most policies exclude sewer back-up and overland flooding unless you purchase additional coverage. This is particularly important in areas like South Scarborough, where basement flooding is a known issue.
• Hail and wind: Damage caused by hail or wind, including flying debris and falling trees or branches, is covered.
• Aircraft or vehicle impact: If an aircraft or vehicle damages your property, your insurance will cover the repairs or replacements.
• Window breakage: This coverage applies to occupied homes. If your home is vacant for more than 30 days, this coverage may be void unless you have vacant home insurance.
• Falling objects: This protects your property from falling objects, including space debris. However, damage caused by landslides or snowslides is typically excluded, so confirm with your provider.

Add-ons to home insurance coverage in Scarborough

You can enhance your standard home insurance in Scarborough with additional coverage – commonly known as ‘add-ons,’ ‘riders,’ or ‘endorsements.’ Here are some popular options:

• Overland water: This can protect you from water damage caused by thawing snow, flooding rivers or nearby water, lakes and streams. Get more tips on flood insurance here.
• Sewer back-up: Protects your home when a main sewer backs up and causes damage.
• Earthquake: Covers losses or damage caused by an earthquake. While rare in places like Scarborough (or GTA as a whole), this coverage can benefit Canadians on the West and East Coasts.
• Mass evacuation: This can happen with severe flooding or wildfires. Should you be ordered to evacuate your home, this would cover living expenses temporarily.
• Identity theft: This will cover you if important documents such as your passport are stolen, and you need to replace them.
• Lock replacement: This add-on would cover the cost if your lock is broken and needs replacing.
• Personal valuables: If you own expensive things like jewelry, collectibles and artwork, then you may need extra coverage for them. Do an inventory of all your possessions and assign monetary value to them. Then talk to your provider to find out if you need extra coverage.
• Home sharing: If you’re looking to rent out your property, this will provide you with the additional property and liability coverage you need to stay protected.
• Personal umbrella: If you’re worried that your standard liability coverage isn’t enough (e.g., if your lawsuit costs you more than expected), this add-on can make up the difference.

What is not covered under your Scarborough home insurance

Unfortunately, your home insurance policy in Scarborough won’t protect you from every possible risk. Certain perils are typically excluded because they are considered predictable or preventable. Here’s a list of what’s usually not covered:

• Absence from the home: Damage that takes place while you’re away from the home for an extended period of time.
• Alterations: A homeowner will only be protected against damage to a property that occurs during an alteration to it if they have received written permission from the insurance provider to undertake the alteration. However, common repairs such as painting or fixing a broken railing are not subject to this exclusion.
• Bylaw enforcement: You are not likely to be covered for costs stemming from the application or enforcement of a bylaw.
• Damage from renters: Most insurance providers require specific coverage for landlords. A standard home insurance policy is unlikely to protect you if a renter damages the property.
• Mold: Since mold occurs slowly due to pre-existing conditions, such as extreme humidity, there is usually enough time for you to prevent it. Home insurance isn’t meant for maintenance – it's here to address major perils only.
• Pest infestations: Damage caused by pests such as termites, bedbugs, or rodents is not covered. Pest control is considered part of regular home maintenance, so it’s your responsibility to address infestations promptly.
• Volatile substances: If you store more than one gallon of a volatile substance, such as gasoline, on your property and it causes a fire or explosion, your claim may be denied.
• Purposeful damage: Any intentional damage you cause to your property is not covered. Filing a claim for such damage is considered insurance fraud.
• Intentional injuries to guests: If you intentionally harm a guest in your home, your liability coverage will not apply. There are no add-ons to cover this scenario, so it’s best to avoid such situations altogether.
• Existing damage: Damage that occurred before your policy started is not covered. It’s important to address any pre-existing issues before purchasing a policy.