Ontario Home Insurance Guide

Your home is the largest purchase you will make. The right insurance protects that investment from day one. Here is everything Ontario homeowners need to know.

Get Notified

We are finalizing partnerships with Ontario insurers. Enter your email to be first when we launch rate comparison.

No spam. Unsubscribe anytime.

The Basics

Why Home Insurance Matters on Day One

Ontario law does not require home insurance, but your mortgage lender does. Without it, a single incident can cost you everything.

Your mortgage requires it

Most lenders will not close without proof of insurance. Do not wait until closing day — shop at least 2 weeks before.

Default policies have gaps

Standard policies often exclude water/sewer backup, overland flooding, and earthquake. Know what you are missing before you need it.

Replacement cost vs market value

Make sure your policy covers the cost to rebuild from scratch, not what the home is worth on the market. These are very different numbers.

Coverage Types

What Your Policy Should Cover

Not all policies are equal. Here are the coverage types every Ontario homeowner should understand.

Dwelling Coverage

Covers the physical structure of your home. Should equal the full cost to rebuild at today’s construction prices.

Included in base policy

Personal Property

Covers your belongings — furniture, electronics, clothing. Standard policies cap at 70% of dwelling value. Jewelry, art, and collectibles need scheduled endorsements.

Included, but check sub-limits

Liability Coverage

Protects you if someone is injured on your property. Ontario standard is $1M, but $2M is recommended. Covers legal defense costs.

$1M included; $2M add ~$30/yr

Water/Sewer Backup

NOT included in most standard policies. Covers damage from backed-up drains, sump pump failure, or sewer line issues. This is the #1 most common claim in Ontario.

Add-on: $50–$150/year

Overland Water/Flood

Covers damage from river overflow or surface water entering the home. Increasingly important with climate change. Not all insurers offer this.

Add-on: $100–$300/year

Additional Living Expenses

Covers hotel, meals, and temporary housing if your home becomes uninhabitable. Usually capped at 12 months or a percentage of dwelling value.

Included in base policy
Cost Guide

What Ontario Homeowners Pay

Premiums vary widely by location, home age, and coverage level. Here are typical ranges for Ontario.

Average Annual Premium
$1,200–$2,000
Detached home, 2,000 sq ft, GTA
Condo Insurance
$400–$800/yr
Unit contents + improvements + liability
Water Backup Add-on
$50–$150/yr
Highly recommended for Ontario
Deductible (Standard)
$500–$2,500
Higher deductible = lower premium

Ways to Lower Your Premium

Bundle home + auto with the same insurer
Install a monitored alarm system
Upgrade plumbing from galvanized to copper or PEX
Install a sump pump with battery backup
Increase your deductible to $1,000+
Ask about loyalty and claims-free discounts
Protect Yourself

Insurance Red Flags to Watch For

1

Policy lists “Actual Cash Value” instead of “Replacement Cost”

ACV deducts depreciation. A 15-year-old roof worth $20,000 to replace might pay out only $5,000 under ACV.

2

No water/sewer backup coverage

This is the most common claim in Ontario. If it is not explicitly listed, you are not covered. Ask.

3

Sub-limits on valuable items are too low

Standard policies cap jewelry at $2,000–$6,000 total. Electronics, art, and collectibles have similar caps. Schedule individual items above the limit.

4

The agent cannot explain your deductible structure

Some policies have separate deductibles for wind, water, and standard claims. You need to know all of them before a loss.

5

Premium is significantly below market

Unusually cheap insurance often means inadequate coverage, high deductibles, or an insurer that denies claims aggressively. Compare coverage, not just price.

When It Happens

How to File a Claim in Ontario

When damage occurs, what you do in the first 24 hours matters. Follow this process to protect your claim.

1

Document everything immediately

Photograph all damage from multiple angles. Video walkthrough is even better. Do this before any cleanup or repairs.

2

Prevent further damage

You are required to take reasonable steps to prevent additional loss. Board up broken windows, tarp a leaking roof, shut off water. Keep receipts for all emergency expenses.

3

Contact your insurer within 24 hours

Call the claims line, not your agent. Get a claim number. Ask about coverage for temporary repairs and living expenses if applicable.

4

Get repair estimates from licensed contractors

Get at least two written estimates. Your insurer may send their own adjuster, but you are entitled to independent estimates. Use ProScore-verified contractors for confidence.

5

Keep a detailed log

Record every phone call, email, and interaction with your insurer. Note dates, names, and what was said. This protects you if there is a dispute.

Need a Contractor for Repairs?

When filing a claim, using licensed and insured contractors strengthens your case. ProScore verifies credentials against government databases.