What a homeowner policy covers
- Your dwelling. The cost to rebuild your home after a covered loss such as fire or a burst pipe.
- Detached structures. Garages, sheds and fences.
- Your belongings. Furniture, clothing and electronics, at home or while you travel.
- Additional living expenses. Hotel and meal costs if you cannot live at home during repairs.
- Personal liability. If someone is hurt on your property or you accidentally damage someone else’s.
Coverage people find out about too late
- Sewer backup. Usually an add-on, not automatic. Essential if your basement is finished or rented.
- Overland water. Flooding from heavy rain or overflowing water is separate from sewer backup.
- Service lines. Repairs to buried water, sewer and power lines on your property.
- Jewellery and watches. Standard policies have low limits for theft. Higher-value pieces should be listed separately.
- Home business equipment. Business property and liability are often excluded unless you add them.
Renting out part of your home
If you rent a basement apartment or a room, tell your insurer. A standard homeowner policy may not cover the rental unit, your rental income or your liability to tenants. Read our guide to insuring a second unit.
What decides your price
- The cost to rebuild, which is different from what the house would sell for.
- The age of the roof, plumbing, wiring and heating.
- Past claims, especially water claims.
- Your deductible.
- Protective devices: monitored alarms, water leak sensors and automatic shut-off valves can earn discounts.
Common questions
Is my home insured for what I paid for it?
No. Home insurance covers the cost to rebuild, which does not include the land. Rebuild cost can be higher or lower than market value, so it is worth checking every few years.
Does home insurance cover flooding?
It depends on the add-ons you choose. Sewer backup and overland water are usually separate coverages, and both are worth discussing if you have a finished basement.
My lender needs proof of insurance before closing. Can you help?
Yes. Tell us your closing date and we arrange coverage to start that day and send the confirmation your lawyer and lender need.