How Does Home Insurance Work in Canada?
There are several types of home insurance in Canada that offer varying levels of protection. All-perils (aka comprehensive) is the most popular choice with homeowners as it offers the most extensive coverage; however, there are other choices available based on the type of home and budget.
Types of Home Insurance Policies in Canada:
Below are the basic types of home insurance policies offered to homeowners in Canada.
What’s Included in My Home Insurance Policy in Canada?
A Canadian home insurance quote from MyChoice includes a comprehensive policy that provides more than basic protection. It ensures the home can be restored to its original condition even when rebuilding expense exceeds the dwelling coverage limit.
Enhanced Water Protection covers flooding, sewer backup, and groundwater seepage, while Base Residence / Dwelling provides coverage for your contents, liability, and other common perils. Together, these make up a MyChoice quote and provide a complete plan to protect your home and belongings.
| Coverage Type | What’s Included? | Median Annual Home Insurance Premium |
|---|---|---|
| Base Residence / Dwelling | – Dwelling Coverage – Outbuildings (detached structures) – Contents – Personal Liability – Voluntary Medical Payments – Voluntary Property Damage – Basic Water Damage | $1,498 |
| Enhanced Water Protection | – Sewer Backup Endorsement – Ground Water Endorsement – Overland Water Endorsement – Broad Water Damage Endorsement | $212 |
| Coverage Total: | $1,710 |
Base Residence / Dwelling Coverages:
The coverage limits shown in the tables below assume $1 million of dwelling coverage. Actual limits can vary by house and carrier.
| Coverage Type | Coverage Details | Average Coverage Amount/Limit |
|---|---|---|
| Dwelling Coverage | Pays the expense of rebuilding the home after insured damage. | $1,000,000 |
| Outbuildings (detached structures) | Coverage for rebuilding any other structures not connected to the dwelling (e.g., garages, sheds, and fences). | $150,000 |
| Contents | Protects your personal belongings from loss or damage from covered perils. | $750,000 |
| Personal Liability | Pays legal and medical costs when someone sues alleging injury or property damage. | $1,000,000 |
| Voluntary Medical Payments | Limited amount is paid, regardless of fault, for medical expenses arising from an accidental injury to another person occurring on the premises. | $4,500 |
| Voluntary Property Damage | We also pay a small amount for damage caused accidentally to the property of someone else, including by a minor in your care. | $1,500 |
| Basic Water Damage | Accidental and sudden water damage, such as burst pipes or overflowing appliances. | $1,000,000 |
Enhanced Water Protection:
MyChoice recommends that, if you live in a flood-prone area in Canada, you should get an enhanced water protection package as outlined in the latest study.
| Coverage Type | Coverage Details | Average Coverage Amount/Limit |
|---|---|---|
| Sewer Backup Endorsement | Damage to your residence caused by sewage or septic backup would be covered. | $100,000 |
| Ground Water Endorsement | Add-on coverage is available for damage caused by groundwater seepage, which is not covered under the terms of the insurance policy. | $250,000 |
| Overland Water Endorsement | Freshwater flood insurance covers damage to the home caused by flooding from rivers and lakes or from heavy rainfall. This insurance is recommended for homes in flood-prone areas but is an option. | $250,000 |
| Broad Water Damage Endorsement | Depending on the insurer, protection for seepage or ice-damming may be part of this catch-all rider. It may also bring overland-water, sewer-backup, and ground-water coverage together. | $250,000 |
Most Popular Home Insurance Endorsements
Standard Canadian home policies usually leave certain perils uninsured. You may therefore wish to add one or more of these popular coverages that are not typically included:
Average Home Insurance Cost in Canada by Province
Home insurance premiums vary considerably throughout Canada based on the risks associated with the area’s climate, housing market, and the province’s claims history.
| Province | Average Annual Home Insurance Premium | % Difference From National Average |
|---|---|---|
| British Columbia | $2,280 | +77% |
| Alberta | $2,089 | +62% |
| Saskatchewan | $1,287 | 0% |
| Manitoba | $1,098 | −15% |
| Ontario | $1,423 | +10% |
| Quebec | $1,235 | −4% |
| New Brunswick | $895 | −31% |
| Nova Scotia | $922 | −29% |
| Prince Edward Island | $822 | −36% |
| Newfoundland | $861 | −33% |
| Canada (National Average) | $1,291 |
Who Provides Home Insurance Quotes in Canada
Using one of the following four options or contacting a provider directly are two ways you can get Canadian home insurance rates.
Most Popular Home Insurance Companies in Canada
The table below identifies several popular Canadian home insurers and the provinces where each one operates.
For a more in-depth explanation of the insurance, go to the top companies page, which also includes insurance providers that are not listed below.
| Home Insurance Provider | Provinces Available |
|---|---|
| Aviva | Nationwide |
| Desjardins Insurance | AB, ON, QC |
| Intact Insurance | Nationwide |
| RSA Group (Intact) | Nationwide |
| TD Insurance | Nationwide |
| Co‑Operators | Nationwide |
| Square One Insurance | BC, AB, MB, ON, SK, QC |
| Wawanesa Insurance | Nationwide |
| Allstate Canada | AB, ON, QC, NB, NS |
| Belairdirect | AB, BC, ON, QC, NB, NS NL, PEI |
| SGI Canada | SK, AB, BC, MB, ON |
How to Get Cheap Home Insurance in Canada
Common Home Insurance Discounts in Canada
Some insurers offer discounts on home insurance. When all applicable discounts are taken into consideration, the savings could be substantial, as much as 20%. But discounts vary by insurer, so you need to check with your insurer or broker to learn what discounts are available in your area. Eligibility is based on a variety of factors, including property type, the condition of the home, the likelihood of natural disasters in your area and the crime rate.
The most frequently available Canadian home insurance discounts include the following:
| Discount Type | Average Percentage Savings | Average Discount Value |
|---|---|---|
| Multi-Line (Home + Auto) | 11.4% | $147 |
| Claims-Free Discount | 16.5% | $213 |
| Alarm System (Burglar) | 7.5% | $97 |
| Alarm System (Fire) | 5.0% | $65 |
| Membership Discount (CAA) | 10.0% | $129 |
| Non-Smoker Discount | 7.5% | $97 |
Why You Should Compare Home Insurance with MyChoice
At MyChoice, finding a suitable home insurance policy can be a challenge since there are so many providers on the market. Use a comparison website to help you look at your options and find the best deal.
Our platform brings together policies from leading Canadian home insurers, giving you a broad selection to compare. Reviewing the options in one place makes it easier to find a strong deal tailored to your needs.
What Details Do You Need to Get a Home Insurance Quote?
Home insurance quotes are based on several factors. Have all the details about yourself as a homeowner, specifics about your house, your previous insurance history, as well as any existing insurance ready when you look for a quote. Whether you are shopping around for different home insurance providers or it’s your first time getting insurance, having the right information in advance will help you receive an accurate quote.
Factors That Affect Your Home Insurance Rate in Canada
There are a number of factors that will affect the price of home insurance in Canada. These include your location, the type of property you own, and your credit history. Find out more about the key factors that affect the cost of home insurance in Canada below.
Property Insurance Claims Are on the Rise in Canada
Climate change has transformed Canada’s insurance market, producing a 379% increase in average annual insurable damages during the past decade. Weather-related losses have made those ten years the costliest period on record for homeowners and insurers.
Insurance payouts resulting from disasters have also increased considerably, with some provinces, including Alberta (+495%), Saskatchewan (+302%), and Ontario (+89%), experiencing extreme increases in the trend.
Overall, climate-related damages are responsible for about $400 per year in Canadian home insurance premiums, which have increased by 76% in the last decade. Premium increases were greatest in Saskatchewan (106%) and Alberta (90%). Elsewhere in Canada, industry-wide sharing of insurance risk means that provinces with fewer climate-related losses also felt the impacts of these events through higher home insurance inflation.
| Province | Average Annual Insurable Damages (2015-2024) | Average Annual Insurable Damages (1985-2014) | Home Insurance Inflation (2015-2025) |
|---|---|---|---|
| Quebec | $184 M | $157 M | 53.75% |
| Ontario | $437 M | $232 M | 79.05% |
| New Brunswick | $40 M | $30 M | 67.39% |
| Nova Scotia | $24 M | $31 M | 81.11% |
| Newfoundland | $29 M | $11 M | 77.26% |
| PEI | $19 M | N/A | 55.87% |
| Alberta | $1,219 M | $205 M | 89.70% |
| British Columbia | $70 M | $66 M | 85.48% |
| Manitoba | $255 M | $141 M | 68.40% |
| Saskatchewan | $70 M | $18 M | 111.33% |
| Canada (Average) | $1,820 M | $380 M | 76.94% |
Understanding Your Home Replacement Cost
Carry enough insurance to fund a complete rebuild if the home is destroyed. That expense is the replacement cost, which is different from market value and depends on the property’s location, size, and construction materials.
A home policy may offer replacement cost coverage or actual cash value coverage, with compensation calculated differently under each. Replacement cost pays for lost items or repairs without deducting depreciation, using today’s market value. Actual cash value accounts for depreciation and pays according to the property’s current, depreciated condition.
Replacement cost may be calculated differently by each insurer, and an independent third-party appraisal is another way to establish it. Consider the alternatives carefully and select the approach that best fits your needs.
Commonly Asked Questions About Home Insurance
How much does home insurance cost in Canada?
Average home insurance costs vary by province because regional weather, crime levels, building expense, and other risks differ. The table above presents the provincial averages.
Why has the price of home insurance gone up in 2026?
Home insurance became more expensive in 2026 primarily because replacement costs rose and catastrophic weather events across Canada produced more claims.
Are you required to have home insurance in Canada?
No. Canadian law does not require a home insurance policy.
What is a home insurance peril?
A peril is a type of risk that may cause you to experience a financial loss. Basically, anything that threatens your property is considered a peril. Many perils can also pose a liability risk. Some perils that home insurance policies typically cover are fire, theft, and water damage.
What perils would home insurance not typically cover?
Generally, it's less expensive to pay annually. Some insurers offer a discount of up to around 7% if you pay your policy's premium annually.
What should the best home insurance cover?
When shopping for homeowner's insurance, you should purchase coverage that includes protection from most catastrophic risks since these events are the most common causes of significant damage to a home.
Does home insurance differ by province?
While the types of home insurance policies provinces offer are pretty much the same, the cost of the policies will differ. The price of your insurance depends on a number of location- and situation-specific factors.
What happens when I receive a home insurance quote I like on MyChoice?
Completing the quote form produces a list of rates. We assume the option you select will be the most competitive one.
What home insurance companies will I get to see quotes from?
MyChoice partners with more than 30 leading Canadian home insurance companies. A mix of direct and traditional insurers provides broad choice and convenience.
Is a credit check required for home insurance in Canada?
In all of Canada except Newfoundland and Labrador, a home insurance company can check your credit score. Although not required, if the review reveals you have a high credit rating, it could mean a discount on your rate. Usually, a low credit rating will not affect your home insurance rates.
Does mortgage insurance differ from home insurance?
Although they are similar in some ways, as both offer some degree of security, home insurance and mortgage insurance are two different products with different purposes.
