The Best Home Insurance Quotes in Vancouver

Home insurance in Vancouver

Vancouver, on Canada’s west coast, is home to more than 2.4-million residents. According to the Real Estate Board of Greater Vancouver, the MLS® Home Price Index composite benchmark price of a home is more than $1.2 million in August 2022.

It’s considered an expensive city to live in, leaving many Vancouverites with an appetite for savings. For homeowners looking to manage their costs, we recommend home insurance, including policies secured at a competitive rate.

While having home insurance is not mandatory anywhere in Canada, having coverage is an easy way for people to protect their real estate investment. Coverage also has the benefit of providing liability protection. This means that homeowners in Vancouver with home insurance will be compensated financially if someone is injured while visiting their home and/or the homeowner themself unintentionally damages someone else’s property. In other words, the trade-off for paying a monthly premium for home insurance coverage is being protected financially in the event of a claim.

To make an informed decision about what type of coverage to purchase, homeowners should be aware of how home insurance policies are structured. Most policies include four key elements:

• Property: Protects the home and buildings on the property (such as a garage) against common perils such as fire and wind.
  
• Contents: Protects the contents of the home, including furniture, appliances, clothing and other personal belongings. Homeowners seeking coverage for especially valuable belongings such as jewelry or specialty sports equipment can add what’s called a ‘rider’ to their policy for more contents coverage than is included in most policies. (A rider is an insurance industry term that refers to a provision that alters the terms of a policy).
  
• Additional living expenses: Refers to financial compensation the homeowner receives to cover living expenses if they’re forced to leave the home while it’s being repaired, following a covered peril.
• Liability: Protects the homeowner financially if someone not named in the policy is injured at the home. Also protects the homeowner if they unintentionally cause damage to someone else’s home.

Package types

Most home insurance providers package their coverage in a similar way, though they may name and market their products differently. Here, we highlight the most common home insurance package types:

• Basic: Offers protection against common perils named in the policy. For this reason, this policy type is also sometimes called a ‘named perils’ policy. It is the most modest amount of protection available.
  
• Broad: Offers protection against all perils and for the contents of the home. It is sometimes referred to as a ‘standard’ policy.
  
• Comprehensive: Offers the most significant amount of protection, including all perils coverage to the home and its contents – though not for exclusions listed in the policy. It is also sometimes called an ‘all perils’ policy.
  

Additional coverage

Regardless of what packaged type the homeowner purchases, they may want protection for perils not covered and/or explicitly excluded from the policy. In order to be protected, more coverage must be added to the policy.

Common add-ons include:

• Overland water: Protects against damage by water from a nearby river, stream, lake and/or thawing snow.
  
• Sewer back-up: Protects against damage from water that has backed up through a drain or toilet.
  
• Earthquake: Protects against damage from an earthquake or landslide – both relevant to Vancouver homeowners because these perils are more common in the region.
  
• Mass evacuation: Covers costs associated with being away from home in the event of a government-issued evacuation.
  
• Identity theft: Covers replacement costs for documents such as a passport or identity cards.
  
• Lock replacement: Covers the cost of replacing locks on a home.

How to get the cheapest home insurance in Vancouver

Homeowners in Vancouver who would like to bring down the cost of the insurance coverage can rely on some or all of the following tactics:

• Pay annually: Homeowners may be able to reduce their insurance costs by paying upfront for the full amount of a 1-year policy.
• Bundle: Homeowners who have more than one insurance policy with a provider will be able to save 5-15%. Bundling is the single most effective way to bring down insurance costs because providers are often willing to come down on price when they hold more of a client’s business.
• Comparison shop: Comparing available rates every time a policy is up for renewal is a crucial step to managing insurance costs. When a homeowner shops around each year when their policy is up for renewal, they’ll be able to secure a better rate and customize their policy – either adding more coverage or taking some away – without being subject to any penalty for breaking the terms of the policy.
• Increase deductible: When a homeowner is likely to have the cash available to pay a larger deductible in the event of a claim, the insurance provider may be willing to offer them a lower premium when they agree to have a bigger deductible.
• Agree to a credit check: Homeowners who consent to have their credit score considered may be eligible for cheaper Vancouver home insurance. While some provinces forbid the practice, in British Columbia, a good credit score can have a favourable impact on insurance premiums. By law, a bad score cannot be used to penalize a policyholder with a more expensive premium.
• Maintain a clean record: Homeowners who have no history of having filed a home insurance claim may be able to secure a better premium. Providers are always trying to gauge how likely a homeowner in Vancouver is to make an insurance claim. They tend to consider past claims as an indication that future claims are more likely and may adjust the premium accordingly.