This guide draws on the federal home-insurance guide, the federal claims guide, Insurance Bureau of Canada’s home-claim guide, and Health Canada’s fire-safety guidance.
This guide explains Canadian fire coverage for homeowners, condo owners, and renters; immediate safety and post-emergency steps; replacement-cost and cash settlements; and the claim records to keep.
Does Home Insurance Cover Fire Damage In Canada?
Fire damage is a common insurance claim. Fires can be accidental, including cooking, smoking, electrical or candle fires. Insurers don’t necessarily turn away a claim if human error led to a house fire. Each situation is assessed based on the circumstances. However, deliberate destruction of property and insurance fraud raise different issues. In some circumstances, poor maintenance could mean that the item that failed won’t be covered, but the fire damage may still require a separate coverage analysis.
Most Canadian insurers don’t provide fire damage insurance on its own. Instead, fire is typically an insured peril included in standard tenant and homeowner’s insurance. How much of a loss would be covered depends on several factors including who owns what, the policy form, limits, deductibles, the basis of settlement, exclusions and the cause of the fire.
Which Policy Responds?
| Living arrangement | Property policy may address | Separate item to check |
|---|---|---|
| Homeowner | Dwelling, detached structures, belongings, additional living expenses and liability | Dwelling limit; replacement-cost conditions; code-upgrade coverage. |
| Condo owner | Third-party liability; your personal belongings; your improvements to the unit; and additional living expenses. | Condo corporation policy, standard-unit definition and corporation deductible |
| Tenant | Belongings, additional living expenses and liability | The tenant’s belongings are not covered by the landlord’s policy. The landlord’s policy covers the building itself. |
| Seasonal, vacant or under renovation | Property coverage is limited to the protection stated in the applicable form or endorsement. | Occupancy conditions, vacancy permit, heating and inspection requirements |
If A Fire Is Happening Now
- Follow your escape plan and get everyone out of the house. Stay out. Do not go back in for pets, papers, or possessions. Call 911 from a safe place. Follow all fire department instructions and evacuation orders.
- As soon as it is safe, notify your insurer or broker. Do not wait to determine the extent of the loss to get a claim started. Do not enter or begin cleanup until the fire department or other authorities say it is safe. Then ask your insurer what emergency work it wants authorized.
What’s Covered By Home Fire Insurance
| Coverage part | What it may pay | What to confirm |
|---|---|---|
| Dwelling and structures | Costs to repair or rebuild the insured building and/or listed structures. | Limit; same-site rule; bylaw or code upgrade; debris removal; guaranteed or extended replacement wording. |
| Personal property | Cleaning, repair or replacement of damaged belongings | Actual cash value or replacement cost; special limits; proof and documentation requirements. |
| Additional living expenses | The additional cost of accommodation and other necessary living costs caused by an insured loss. | Dollar limit? Time limit? Confirm each. Housing arrangements approved? How to count meals? Expenses pre-approved? |
| Liability | Defence and compensatory damages if you are legally liable for injury or damage to someone else. | Liability limit, exclusions and insurer control of the defence |
| Smoke, water and fire-service damage | Physical damage that results from this may be included in the insured fire loss. | Contamination testing; restoration scope; whether damaged material can be disposed of. |
Additional living expense coverage is not intended to give you money for lifestyle expenses. It normally addresses reasonable increases above your usual living costs, subject to the policy terms.
Keep records of expenses, including:
- Temporary housing costs, such as hotel folios and leases
- Food (save your receipts)
- Travel costs, keeping a mileage log and getting permission in writing
Read More: Use the Home Fire-Extinguisher Maintenance Checklist
What MyChoice Data Shows
Based on thousands of home insurance quotes collected by MyChoice since the beginning of 2026, the median recorded additional living expense limit was $160,600 with the middle half ranging from $120,500 to $219,849. But large dollar limits can still have time limits, guidelines around eligible expenses and the fact that the fire must be a covered event. Make sure you understand the dollar and time limits on additional living expense coverage.
What Isn’t Covered By Home Fire Insurance
A denial should specify the applicable exclusion and the facts upon which it is based. Common grounds for disputes are intentional damage, misrepresentation and fraud. Other common grounds for dispute include vacancy, unreported changes in use or occupancy, illegal activity connected with the loss and business property located at a dwelling.
Generally, the cost to repair the defective or worn item that started the fire is excluded. This doesn’t mean all preventable fires are excluded from coverage.
Home insurance only pays for property and types of losses described in the policy. The payout for damage to your home is not based on its market value and does not include the value of your land. Limits of coverage and valuation clauses determine how much you’ll be paid.
Replacement Cost Is Not Market Value
Actual cash value takes depreciation into account. Replacement-cost coverage may pay the cost to repair or replace with materials of like kind and quality. But the policy may provide that you’ll only receive replacement-cost coverage after an item has been repaired or replaced and you’ve followed the terms of the policy.
Some policies offer extended or guaranteed replacement cost coverage that pays beyond your dwelling coverage limit, but only if certain requirements are met. Check with your insurer. For instance, some insurers require you to rebuild on the same site. If you take a cash settlement or rebuild on another lot, it may mean you receive a different settlement.
Find out how payments will be made, especially if there’s a lender on the policy. Payments may be made out to you and the lender jointly or to your lender. Find out this information before agreeing to a cash settlement or signing a building contract.
Read More: Compare Replacement Cost and Actual Cash Value After a Fire
You Have An Older Home:
If you have an older home, check to see if dwelling limits are enough to cover upgrades required to rebuild. Current bylaws and building codes may apply when rebuilding. Ask if additional costs associated with building to current codes are covered.
Your Home Is Very Personalized Or Custom:
If your house is personalized or custom, tell the insurer exactly what materials are used. Disclose nonstandard sizing, heritage features, or specialist labour prior to a loss.
Read More: See What to Do When a Home Insurance Claim Is Delayed