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.
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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.
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.
Personal Property
Covers your belongings — furniture, electronics, clothing. Standard policies cap at 70% of dwelling value. Jewelry, art, and collectibles need scheduled endorsements.
Liability Coverage
Protects you if someone is injured on your property. Ontario standard is $1M, but $2M is recommended. Covers legal defense costs.
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.
Overland Water/Flood
Covers damage from river overflow or surface water entering the home. Increasingly important with climate change. Not all insurers offer this.
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.
What Ontario Homeowners Pay
Premiums vary widely by location, home age, and coverage level. Here are typical ranges for Ontario.
Ways to Lower Your Premium
Insurance Red Flags to Watch For
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.
No water/sewer backup coverage
This is the most common claim in Ontario. If it is not explicitly listed, you are not covered. Ask.
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.
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.
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.
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.
Document everything immediately
Photograph all damage from multiple angles. Video walkthrough is even better. Do this before any cleanup or repairs.
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.
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.
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.
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.