Home insurance in Canada typically costs $1,000-$2,400 per year depending on your province, property type, and coverage level. Unlike car insurance, home insurance is not legally required — but your mortgage lender will require it, and going without coverage on what is likely your largest asset is a risk very few Canadians should take. A single house fire, burst pipe, or liability claim can cost hundreds of thousands of dollars. This guide compares the top Canadian insurers, breaks down what is and is not covered, and shows you how to get the best rate.
Best Home Insurance Companies
There is no single best home insurer in Canada — the cheapest company for a detached home in Calgary may be the most expensive for a condo in Montreal. That is why getting 3-5 quotes is essential every time you buy or renew. The companies below are the largest and most established in the Canadian market.
Top Insurers Compared
Company
Best For
Rating
TD Insurance
Bundle discounts
★★★★☆
Intact
Largest, many products
★★★★☆
Aviva
Online convenience
★★★★☆
Desjardins
Quebec, competitive rates
★★★★☆
Wawanesa
Customer service
★★★★★
The Co-operators
Member benefits
★★★★☆
Economical (Definity)
Value pricing
★★★★☆
CAA
Member discounts
★★★★☆
Company Details
TD Insurance
Feature
Details
Pros
Bank bundle savings, wide coverage
Cons
Claims process varies
Best for
TD banking customers
Discount
Up to 15% multi-product
Intact Insurance
Feature
Details
Pros
Largest insurer, many options
Cons
Not always cheapest
Best for
Comprehensive coverage
Note
Owns many smaller brands
Wawanesa
Feature
Details
Pros
Excellent customer service
Cons
Not available everywhere
Best for
Service-focused customers
Rating
High satisfaction scores
Average Home Insurance Costs
By Province
Alberta and Ontario are the most expensive provinces for home insurance. Alberta’s costs are driven by severe weather — hailstorms in Calgary and flooding across the province generate billions in claims. Ontario’s high premiums reflect expensive property values and high urban density. Quebec, despite having some of the most valuable real estate in Montreal, has historically lower insurance rates due to fewer severe weather claims and a different regulatory structure.
Province
Annual Average
Ontario
$1,400-$2,200
Alberta
$1,400-$2,400
British Columbia
$1,200-$1,800
Quebec
$800-$1,400
Manitoba
$1,100-$1,600
Saskatchewan
$1,200-$1,700
Nova Scotia
$900-$1,400
New Brunswick
$800-$1,300
Why Costs Vary
Factor
Impact
Property value
Higher = more premium
Location
Urban vs rural
Claims history
Past claims raise rates
Coverage amount
More coverage = costs more
Deductible
Higher = lower premium
Age of home
Older may cost more
What Home Insurance Covers
Understanding the difference between what is covered by default and what requires an add-on is critical — the most common and costly claims (basement flooding from sewer backup and overland flooding) are typically not included in standard policies. Many homeowners discover this only after they file a claim, which is too late.
Standard Coverage (All-Risk)
Component
What’s Covered
Dwelling
Main structure
Other structures
Garage, shed, fence
Personal property
Contents inside
Liability
If someone injured
Additional living expenses
If displaced
Coverage Amounts
Your dwelling coverage should reflect the full rebuild cost of your home, not its market value. Market value includes the land, which does not need to be insured. The rebuild cost is what it would cost to construct your home from scratch, including materials and labour. Many homeowners are underinsured because they base their coverage on what they paid for the house rather than what it would cost to rebuild at today’s construction prices.
Component
Typical Coverage
Dwelling
Rebuild cost (not market value)
Contents
50-70% of dwelling
Liability
$1M-$2M recommended
ALE
20% of dwelling
Common Exclusions
Not Typically Covered
The two add-ons every Canadian homeowner should seriously consider are sewer backup coverage and overland flood coverage. Sewer backup is one of the most common home insurance claims in Canada — a single basement flood can cause $20,000-$50,000+ in damage. With climate change increasing the frequency of extreme rainfall events, these add-ons are becoming less optional and more essential, especially in flood-prone areas.
Exclusion
Add-On Available?
Overland flooding
Yes (important!)
Sewer backup
Yes (recommended)
Earthquake
Yes (BC especially)
Normal wear
No
Intentional damage
No
Business use
Separate policy
Important Add-Ons
Coverage
Why Important
Sewer backup
Basement flooding common
Overland flood
Climate change increasing
Home business
If you work from home
Jewelry rider
High-value items
Identity theft
Growing risk
Factors Affecting Cost
Property Factors
Factor
Effect on Premium
Home value
Higher = more expensive
Construction type
Wood costs more
Age of home
Older = higher risk
Roof age
Old roof = higher rates
Electrical
Knob-and-tube adds cost
Heating
Oil heat costs more
Location Factors
Factor
Effect
Fire department distance
Farther = more expensive
Claims history area
High-claim areas cost more
Flood zone
Significant premium
Crime rate
Higher crime = higher rates
Personal Factors
Factor
Effect
Claims history
Past claims raise rates
Credit score
Some insurers check
Occupancy
Primary vs rental
How to Save on Home Insurance
The most effective way to reduce your home insurance cost is bundling it with your auto insurance — virtually every insurer offers 10-20% off when you combine both policies. Beyond that, shopping around every two to three years is essential because insurers regularly adjust their pricing formulas, and loyalty does not always translate to savings. Many long-time customers pay 15-25% more than new customers for identical coverage.
Available Discounts
Discount
Typical Savings
Bundle with auto
10-20%
Claims-free
5-15%
New home
10-15%
Security system
5-10%
Smoke/carbon detectors
5%
Mortgage-free
5-10%
Loyalty
5%
Senior
5-10%
Other Strategies
Strategy
Savings
Higher deductible
10-25%
Shop every 2-3 years
10-30%+
Update coverage
Don’t over-insure
Improve home
Modern systems
Pay annually
Avoid fees
What Deductible to Choose
Your deductible is the amount you pay out of pocket before insurance kicks in. A higher deductible lowers your premium but means more exposure on a claim. For most homeowners, a $1,000-$2,500 deductible strikes the right balance. Going below $1,000 is usually not worth the premium increase, and you should rarely file small claims anyway because they can raise your rates for 5-10 years.
Deductible
Trade-off
$500
Higher premium, low out-of-pocket
$1,000
Balanced approach
$2,500
Lower premium, higher risk
$5,000
Lowest premium, significant risk
Types of Home Insurance
By Policy Type
Type
Coverage Level
Comprehensive
All-risk (most common)
Broad
Named perils for contents
Basic
Named perils only
No-frills
Minimal coverage
By Property Type
Property
Policy Needed
House you own
Homeowner’s policy
Condo
Condo insurance
Rental property
Landlord insurance
Renting
Tenant/renter’s insurance
Filing a Claim
After property damage occurs, your first priority is preventing further damage — covering a broken window, tarping a leaking roof, or shutting off water to a burst pipe. These emergency measures are covered by your policy. Then document everything: take extensive photos and video before cleaning up, and keep all receipts for temporary repairs. Contact your insurer as soon as possible, ideally within 24 hours.
Steps
Step
Action
1
Prevent further damage
2
Document everything (photos)
3
Contact insurer promptly
4
Get claim number
5
Keep receipts
What to Document
Item
Details
Damage
Photos, video
Inventory
List of damaged items
Receipts
Original purchase if possible
Temporary repairs
Keep receipts
Communication
Written records
Claim Impact
Consideration
Details
Small claims
May not be worth it
Rate increase
Possible after claim
Claims history
Follows you 5-10 years
Deductible
You pay first
Special Considerations
Condo Insurance
If you own a condo, you still need your own insurance even though the condo corporation carries a master policy on the building. The master policy covers common areas and the building structure, but not your unit improvements, personal belongings, or personal liability. Pay close attention to the “loss assessment” coverage — if the condo building suffers a major loss and the master policy’s deductible is large, each unit owner may be assessed thousands of dollars. Your condo policy can cover your share.
Need to Cover
Details
Unit improvements
Upgrades you made
Personal property
Your belongings
Liability
Inside your unit
Loss assessment
Your share of building claim
Landlord Insurance
A standard homeowner’s policy does not cover a property you rent out to tenants — you need a dedicated landlord policy. Landlord insurance typically costs 15-25% more than a regular homeowner’s policy because rental properties carry higher risk. The most valuable coverage is loss of rental income, which pays your mortgage if the property becomes uninhabitable after a covered loss. Require your tenants to carry their own tenant insurance to protect their belongings and provide their own liability coverage.
Coverage
Why Important
Property damage
Building protection
Loss of rent
If property unrentable
Liability
Tenant injuries
The Bottom Line
Home insurance is one of those expenses nobody thinks about until they need it — and then it becomes the most important purchase they have ever made. The best strategy is straightforward: get 3-5 quotes every two to three years, bundle with your auto insurance for 10-20% savings, choose a deductible between $1,000-$2,500, and make sure you add sewer backup and overland flood coverage to your policy. Do not assume your standard policy covers everything — the most common and expensive claims in Canada are often excluded by default.