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Home Insurance Canada 2026 | Costs, Coverage & How to Save

Updated

Home Insurance Costs by Province

Province Average Annual Average Monthly
Alberta $1,800-2,600 $150-217
Ontario $1,400-2,200 $117-183
British Columbia $1,200-1,800 $100-150
Saskatchewan $1,600-2,400 $133-200
Manitoba $1,500-2,200 $125-183
Quebec $1,000-1,500 $83-125
Atlantic $900-1,400 $75-117

Why Costs Vary

Factor Impact
Location (weather risks) Major
Home value/rebuild cost Major
Claims history Major
Deductible chosen Moderate
Coverage amounts Moderate
Home age & condition Moderate
Security features Minor-Moderate

Types of Home Insurance Coverage

Standard Coverage Components

Coverage What It Protects
Dwelling (Coverage A) House structure
Other structures (Coverage B) Garage, shed, fence
Contents (Coverage C) Your belongings
Liability (Coverage D) Lawsuits, injuries
Additional living expenses (Coverage E) Temporary housing

Coverage Types

Type Coverage Level
Basic/Named Perils Only listed perils
Broad Dwelling=comprehensive, Contents=named
Comprehensive All perils except exclusions
All-Risk Most extensive (premium)

Common Covered Perils

Peril Typically Covered
Fire
Lightning
Windstorm
Hail
Theft
Vandalism
Water (internal)
Falling objects

What’s NOT Covered

Standard Exclusions

Exclusion Solution
Flood (overland) Add flood endorsement
Earthquake Add earthquake endorsement
Sewer backup Add sewer backup rider
Neglect/maintenance Maintain your home
Intentional damage N/A
Business activities Get business policy
Vacant home (60+ days) Notify insurer

Getting Additional Coverage

Coverage Annual Cost
Overland flood $100-500+
Sewer backup $50-150
Earthquake $100-300+
Home-based business $50-200
Scheduled jewelry Varies by value

How Much Coverage Do You Need?

Dwelling Coverage

Method Calculation
Rebuild cost Square footage × local construction cost
Professional appraisal Most accurate
Insurer estimate Often automated

Note: Rebuild cost ≠ market value. Land has value; you’re insuring the structure.

Example Dwelling Coverage

Home Type Rebuild Cost
1,000 sq ft condo $200,000-300,000
1,500 sq ft townhouse $300,000-400,000
2,000 sq ft house $400,000-600,000
3,000 sq ft house $600,000-900,000

Contents Coverage

Rule of Thumb Calculation
Standard 50-70% of dwelling coverage
Actual need Home inventory total

Liability Coverage

Amount Recommendation
$100,000 Minimum
$1,000,000 Standard
$2,000,000 Recommended
$5,000,000+ Umbrella policy

How to Save on Home Insurance

Major Savings Strategies

Strategy Potential Savings
Bundle home + auto 5-15%
Higher deductible 10-25%
Claims-free discount 5-15%
Security system 5-15%
New home discount 5-25%
Mortgage-free discount 5-10%
Loyalty discount 2-10%
Senior discount 5-10%
Group rates 5-15%

Deductible Impact

Deductible Premium Savings
$500 Baseline
$1,000 ~10% lower
$2,500 ~20% lower
$5,000 ~25% lower

Home Improvements That Save

Improvement Potential Savings
New roof 5-15%
Updated electrical 5-10%
Updated plumbing 5-10%
Security system 5-15%
Smoke/CO detectors 2-5%
Water leak sensors 2-5%

Best Home Insurance Providers

Provider Best For Notes
TD Insurance TD customers Banking discounts
Intact Insurance Comprehensive coverage Canada’s largest
Desjardins Quebec residents Strong local presence
Aviva Multi-product Good bundling
The Co-operators Claims service Regional strength
Belairdirect Online shoppers Direct savings
Square One Custom coverage Flexible options
Sonnet Tech-savvy Fast online quotes

Special Situations

Condo Insurance

Coverage Condo vs House
Dwelling Unit improvements only
Contents Same as house
Liability Same as house
Unit assessment Special condo coverage
Cost Usually 40-60% less

Note: Condo corp insurance covers building; you need contents + liability.

Older Homes

Issue Solution
Knob & tube wiring May need rewiring
Old plumbing Update or specialized insurer
Oil heating May need removal
Higher premiums Specialty insurers

Home-Based Business

If You… Need
Have clients visit Business liability
Store inventory Business contents
Use equipment for work Business equipment coverage
Have employees Workers’ comp

Policy Terms to Know

Term Meaning
Actual Cash Value (ACV) Replacement cost minus depreciation
Replacement Cost Full cost to replace item
Guaranteed Replacement Rebuild even if over limit
Deductible Your out-of-pocket before insurance
Premium Your annual/monthly cost
Endorsement Additional coverage added
Rider Same as endorsement
Peril Cause of loss

Replacement Cost vs ACV

Item Original Cost ACV (5 years old) Replacement Cost
Sofa $2,000 $800 $2,500
TV $1,500 $300 $1,200
Roof $15,000 $8,000 $20,000

Recommendation: Pay extra for replacement cost coverage.

Making a Claim

Steps

Step Action
1 Ensure safety first
2 Document damage (photos/video)
3 Prevent further damage
4 Report to police if theft
5 Contact insurer ASAP
6 Complete claim form
7 Meet with adjuster
8 Receive settlement

Tips for Better Claims

Tip Why
Document everything Proof of damage/loss
Keep receipts Prove item values
Maintain inventory Quick claim filing
Know your coverage Understand entitlement
Don’t admit fault May affect coverage
Get repair estimates Multiple quotes

When to Review Your Policy

Trigger Action
Annual renewal Shop competing quotes
Renovation Update dwelling coverage
Major purchase Update contents
Home business Add endorsement
Security upgrade Request discount
Paid off mortgage Review coverage needs