Compare Home Insurance Quotes in Canada

Home insurance quotes in Canada: everything you need to know

Home insurance is meant to safeguard your biggest investment – your property – from unforeseen losses. That said, it's probably that, like many homeowners in Canada, you feel that you might be overpaying for your policy. This makes comparing home insurance quotes a necessity. To help you get the best quote, we'll show you how to both select the right policy for your home insurance needs and ensure you're paying the lowest premium possible.

Canadian home insurance trends in 2026

Personal property premium rates have increased for Canadians across the board.

From Q4 2024 to Q4 2025 rates rose an average of 7.8%. Much of that increase can be attributed to the financial costs associated with severe weather damage, which reached $9.2 billion in 2024, including over $1.8 billion in commercial insured losses, according to the Insurance Bureau of Canada.

"Severe weather events, such as the storms and flash flooding that swept through the GTA last summer, or the wildfires forcing thousands to evacuate in Manitoba and Saskatchewan, used to happen once every 20 to 50 years," says Steve Cohen, the VP of Insurance and Chief Underwriting Office at Rates.ca. "They are now yearly occurrences."

Repair and rebuilding costs are also a factor, which have gone up due to inflation, skilled labour shortage and soaring material and equipment costs. In fact, residential building construction costs – which reflect the value of all materials, labour, equipment, overhead and profit to construct a building – have gone up 61% between 2024 and 2019. It doesn't help that, according to a March 2024 report by BuildForce Canada, almost 28,000 workers in the construction industry are projected to retire by 2033, even though higher demand will require the labour force to grow by 88,400 workers. This means that rebuilding costs are only likely to increase in the near future.

“The cost of rebuilding or repairing after water damage can spiral into tens or even hundreds of thousands," says Rates.ca insurance expert Daniel Ivans.

Note: The percentages listed above are derived from comparing rates from one quarter to the same quarter in the prior year (e.g., Q2 2024 is compared to Q2 2023).

Source: The Applied Rate Index (Q4 2025)

Source: Insurance Bureau of Canada (IBC)

Choosing the right home insurance policy

In Canada, the law doesn’t require homeowners to have insurance, but many lenders do. So, if you need a mortgage, chances are you’re going to be getting a home insurance policy.

The question is, what kind of policy do you need? And more importantly, what kind of protections actually exist for your home? We dive into all of that below, where you can find a full breakdown of what a home insurance policy can offer:

Types of home insurance

There are three major home insurance types, which differ mainly by the amount of coverage they offer and by price. As you might expect, more coverage means higher costs – and vice versa.

• Named perils: Also known as ‘basic,’ named perils home insurance coverage is great for homeowners looking to save a little cash in exchange for risking a financial hit on excluded items (in the event of a claim). It provides the least amount of coverage for your house and contents; your home is only protected against perils explicitly named in your policy. For this reason, you’ll sometimes see this policy type referred to as a named perils policy. ‘Fire’ is an example of a named peril you might see in a basic package. If it isn’t stated in your policy, you don’t have insurance protection against it. You may also see some insurance providers describe this type of policy as ‘limited.’
• Broad form: A broad home insurance policy gives more robust coverage – an upgrade to the basic package because it provides all perils coverage to your home and named perils coverage to your contents. Some insurance providers describe this type of  policy as ‘standard.'
• Comprehensive: This is the most inclusive (and expensive) type of home insurance. A comprehensive policy applies all perils coverage (except for exclusions listed in the policy) to your home and your contents, as indicated in the policy. This type of coverage, which is considered the most amount of coverage you can purchase before endorsements are added, is sometimes referred to as an all perils policy.

Who gets covered

• Spouse and relatives: Your policy should cover your spouse and anyone related to either them or you, provided they reside in your home.
• Dependents: Home insurance should protect any dependents under the age of 21 who are students. They may be living in your primary home or temporarily away from it (e.g., college dormitory).

What gets covered

• Property and dwelling: Protects the actual structure of the home from perils such as damage caused by fire and burglary. Coverage is based on the replacement value of your home, not the market value.
• Contents and personal property: Getting contents insurance protects your personal property when it's at home and when you carry it with you, such as a laptop you bring to-and-from school, a bicycle you ride to work that’s stolen or the camera you bring on vacation, subject to limits.

Standard home insurance coverage

Whether you opt for a named perils, broad form or comprehensive home insurance policy, it should cover the following:

Additional Living Expenses (ALE) coverage

Some 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 covers:

• Out-of-pocket expenses: If forced to temporarily move out, your insurance could cover expenses like accommodation, food, moving, laundry, transit, pet boarding and storage.
• Fair rental value: If you’re renting out a part of your home (such as a room or a basement) and your tenant is forced to move out due to a covered incident, your insurance could cover the loss of your rental income.
• Prohibited access: If your home becomes inaccessible due to an unexpected incident, such as a government-mandated evacuation order or a threat to your life, your insurance could cover you.

Liability coverage

Your liability coverage should encompass the following:

• Personal liability: If there is unintentional injury done to someone and/or if you accidentally damage someone else’s property (or if a child under the age of 12 in your care causes damage), you would be protected under your liability coverage.
• Voluntary medical payments: Voluntary medical payments will cover reasonable medical expenses for one year after an accident where you cause unintentional injury to someone, or they are injured on your property accidentally.
• Voluntary property damage: Voluntary property damage will cover if you or someone else in your home (or a child under the age of 12) causes damage to someone else's property by accident.

Commonly covered perils

Commonly covered perils – whether you choose basic, broad or comprehensive coverage – will usually include these:

• Fire: No matter what causes the fire, your insurance company will cover the costs of replacing, rebuilding or repairing your property and recovering your belongings.
• Smoke: If smoke damages your property, you'll receive coverage. However, the smoke has to have come from a malfunctioning cooking or heating device, not your fireplace.
• Lightning or electrical current: Should lightning strike your property, it could damage the wiring in your walls as well as break your appliances and electronics. This will pay for repairing or replacing whatever ends up damaged. Any other electrical current could do the same (and is also usually covered).
• Explosion: Should your property get damaged or destroyed by an explosion, you will receive coverage.
• Riot: If a riot that takes place near your property causes damage to it, your insurance will pay for the necessary repairs or replacement.
• Theft and vandalism: If your home happens to get robbed, this will pay for the replacement of the stolen items. The same applies if the home gets vandalized.
• Transportation: If your personal property, such as a laptop, gets damaged while temporarily away from your home, then its repairs or replacement will be covered. This applies to fixtures or fitting that are being repaired or in seasonal storage.
• Water damage: This pays for the damage to your property and belongings caused by water leakage from indoor plumbing, heating, air conditioning, sprinklers and similar appliances inside or outside your house. The tricky part is knowing what’s excluded. Most coverages usually exclude sewer back-up and overland flooding, so be sure to confirm what is and isn’t covered with your insurer.
• Hail and wind: Should wind or hail damage your property or belongings in any way, this will pay for them. This includes damage from flying debris as well as falling trees and branches (if caused specifically by hail or wind).
• Aircraft or vehicle impact: If an aircraft or another moving vehicle hits your property and damages or destroys it, you will get coverage. 
• Window breakage: This coverage applies only to homes that are occupied. If your home is vacant (meaning it's unoccupied for more than a month), then this coverage could be void. You'd need vacant home insurance to rectify that.
• Falling objects: This protects your property and belongings from falling objects, including space debris and space craft. There are exceptions, however, such as objects moved by landslides or snowslides. Confirm with your provider what is and isn’t covered.

Add-ons to home insurance coverage

You can enhance your standard home insurance with additional coverage – commonly known as ‘add-ons,’ ‘riders’ or ‘endorsements.’ Here’s what usually gets sold in addition to the standard coverage (varies from insurer to insurer):

• Overland water: Overland water coverage protects against damage when water enters the home through the foundation and basement floors or walls. It also covers damage caused by floods from rivers, lakes or other bodies of water due to heavy rainfall, melting snow and rising rivers. Get more tips on flood insurance here.
• Sewer back-up: Sewer back-up insurance covers you when a region's main sewer line backs up into your home, sometimes ruining entire basements and posing massive problems to your home and your health. Severe weather has increased the likelihood of this claim, which is why it is recommended more and more often.
• Earthquake: This coverage is listed as an exclusion in many policies. By adding this type of coverage, you can protect your home from earthquakes, which have been known to take place in some parts of Ontario, British Columbia and Quebec. Earthquakes can cause considerable damage to homes and contents, so it's a worthwhile type of insurance to consider if you live in an at-risk area.
• Mass evacuation: If you live in an area that’s susceptible to weather emergencies, particularly wildfires, you should consider getting mass evacuation insurance. This type of insurance is used in the case of having to evacuate your home and community. It helps cover extra expenses, such as food and lodging.
• Identity theft: Identity theft occurs when someone steals your identity. Identity fraud occurs when someone uses your identity. Both can take place when your credit card, social insurance number or passport are stolen and thieves use these items to gain access to your bank account. While some banks may reimburse you for lost funds, other costs associated with reclaiming your identity can quickly add up.
• Lock replacement: If you’ve experienced a burglary, lock replacement or locksmith coverage will pay for repairing or replacing any damaged locks and/or stolen keys.
• 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 home insurance

Unfortunately, your home insurance can’t protect you from every existing danger out there. Certain perils are always excluded – usually because they are both predictable and preventable. Here’s what they are:

• Absence from the home: If you leave your home for an extended period and damage occurs, you may not be covered – unless you purchase something called ‘vacant home insurance.’
• 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: Like mold, pest infestations, including mice, bedbugs, cockroaches and termites, are also a maintenance concern. So, if they cause any damage, it’s highly unlikely that your home insurance will cover it. That’s why, as soon as you notice an infestation, you should contact the appropriate service to help you resolve the issue (this service shouldn’t be your insurer).
• Volatile substance: If you have more than one gallon of a volatile substance on your property and a fire or explosion takes place, you may be denied coverage. This is likely to include gasoline.
• 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.
• Existing damage: You’re unlikely to be covered for damage that began before you held the policy.