The Best Home Insurance in Toronto

Home insurance in Toronto

Acquiring a home in Toronto can be an expensive proposition if you are looking for big city living with all the amenities that go with it. Of course, protecting your home and your possessions, likely your most expensive asset, is also part of that equation. That is why you’ll want to purchase home insurance for your property.

Home insurance in Ontario, and therefore Toronto, is not officially mandatory, but most lenders won’t provide a mortgage unless you take out home insurance coverage first.

Below are the types of home insurance you can get in Toronto including the most common and additional coverages.

Types of home insurance in Toronto

These are the most common types of home insurance coverage in Toronto.

Homeowners can choose from one of three insurance package types. Insurance providers may market each differently, but they’re generally described as outlined here:

• Basic – Protects the home against perils named in the policy such as fire and wind. This package offers the least amount of coverage available and as a result tends to be the least expensive. It is sometimes called a ‘named perils’ policy.
• Broad – Protects the home against all perils as well as protection for some contents. May sometimes be called a ‘standard’ policy.
• Comprehensive – The greatest amount of coverage available, protecting the home against all perils to the home and its contents. It is often referred to as an ‘all perils’ policy.

Home insurance coverage

• Property and building – This coverage protects both the structure(s) on your property, as well as the property itself, from a variety of perils. Protected incidents include fire, theft and water damage, among others. Because some policies may require additional coverage for secondary structures, like a garage or guest house, consult your insurer if anything is unclear.
• Contents and personal property – Contents and personal property coverage protects your possessions, such as furniture, clothing and sports equipment, against theft and vandalism. Some items, like fine art and expensive jewelry, may not be protected under a standard policy. Excluded items can be protected with additional coverage.
• Additional living expenses – If you’re temporarily displaced by an insurable event, this protection covers your temporary housing costs. For example, if damage to your home forces you to spend a week at a hotel, additional living expenses protection will cover the cost of the room and food, up to a certain amount.

Liability coverage

• Personal liability – This coverage provides protection against liability in the event of injuries, or property to any third party while they are on your property. The default on most home insurance plans for personal liability is $100,000 but it is recommended homeowners have coverage for as high as $1,000,000. Depending on your policy this can go as high as $5,000,000.
• Voluntary medical payments – If you unintentionally injure someone, or someone accidentally injures themselves on your property, this coverage will pay for the medical expenses for up to one year from the date of the accident. Insurers in Ontario offer coverage for Voluntary Medical Payments that typically range between $5,000 – $10,000, and there is no deductible.
• Voluntary property damage – This coverage is for unintentional direct loss or damage you cause to someone’s property. It also covers unintentional loss or damage to someone else’s property by a minor (12 years or under) in your care. Most insurance companies in Ontario set their limits for Voluntary Property Damage at $1,000; however, this will vary according to insurer and policy and often goes as high as $6,000.

Add-ons to home insurance coverage in Toronto

Beyond the standard components of Toronto home insurance policy, there are additional coverages you can purchase to further protect your home and the contents within.

These are some of the most common home insurance add-ons, also known as riders, that you can add to your home insurance policy:

• Overland water – Although not every carrier offers this add-on, if your insurer does, it covers property damage from overflowing water from nearby rivers, streams, lakes and thawing snow.
• Sewer back-up – Protects your home when a main sewer backs up and causes damage.
• Earthquake – Covers losses or damage caused by an earthquake. This add-on is especially useful if your home is in an area that is vulnerable to earthquakes.
• Mass evacuation – If an event, like a flood or wildfire, triggers a government issued evacuation order, this add-on pays for some of the expenses you incur while being away from your home.
• Identity theft – Covers the cost of replacing important documents, such as your passport.
• Lock replacement – If you need to replace the locks on your house, this add-on provides coverage.

What is not covered under your Toronto home insurance

While home insurance can certainly protect you from a variety of perils, it can’t protect you from everything. Some things you can purchase as add-ons, while others you can’t purchase at all. Here’s what they are:

• Flooding – Unless you get this as an add-on, you’re unlikely to be covered for flood damage, whether it's due to sewer back-up or overland flooding. Some types of water damage, such as the ones caused by a tsunami or groundwater seepage, may not have any coverage at all. It’s best to consult with your insurer.
• Earthquake or landslide – Neither earthquakes nor landslides are covered by regular insurance, comprehensive coverage included. You can, however, get this coverage as an add-on, so ask your insurer about it – especially if you live in an earthquake-prone area.
• Mold – Mold is usually preventable and doesn’t happen suddenly, meaning that you, as a homeowner, can make sure it doesn’t occur. For instance, if you realize that the air in your home is humid enough to cause mold, you can take the necessary steps to resolve the issue. That’s why home insurance does not cover mold. It’s on you to deal with it.
• Pest infestation – Though pest infestations, such as mice, bedbugs, cockroaches, and termites, can sometimes come out of nowhere, taking care of them is your responsibility, as part of general upkeep. So, any damage an infestation ends up causing is unlikely to be covered. Your best bet is to address the problem as soon as you notice it.
• Purposeful damage – If you purposely damage your own property or its contents and file a claim for it, you will not be covered. This is, in fact, considered to be insurance fraud, so don’t do it (though you are welcome to damage your own property).
• Intentional injuries to guests – If you intentionally hurt a guest in your own home, your liability coverage will not protect you. And no, there isn’t an add-on for this either. So, don’t purposely hurt your guests.
• Rental – If you decide to rent out your property (or a piece of it) to someone else, be sure to consult with your insurer, as you may need to purchase more coverage.

How much insurance coverage do I need for my home in Toronto?

The amount of home insurance coverage you need in Toronto is a personal choice that will depend on your circumstances and requirements. If you live in a higher-risk neighbourhood, with no security features, you may need more insurance than someone who lives in a less risky area and has a state-of-the-art security system.

Also, the size of your home, how much it costs to rebuild it and its contents will also determine how much home insurance in Toronto you will need. Talk to your broker or agent about how much coverage is right for your situation.