How Does Home Insurance Work In Canada?
Home insurance in Canada comes in several forms, each offering different levels of protection. Most homeowners choose an all-perils (aka comprehensive) policy for the broadest coverage, but there are other options depending on your property and budget.
Types of Home Insurance Policies in Canada:
Below are the main types of home insurance policies available to Canadian homeowners.
What’s Included in My Home Insurance Policy in Canada?
When you get a home insurance quote in Canada with MyChoice, you’re receiving a comprehensive policy that goes beyond just the basics, which ensures your home will be rebuilt to its original condition even if the cost exceeds your dwelling coverage limit.
Your MyChoice quote is made up of two main pillars: Base Residence / Dwelling (covering your home, contents, liability, and standard perils) and Enhanced Water Protection (covering floods, sewer backup, and groundwater seepage). Together, they form a complete protection package for your property and belongings.
| Coverage Type | What’s Included? | Average Annual Home Insurance Premium |
|---|---|---|
| Base Residence / Dwelling | – Dwelling Coverage – Outbuildings (detached structures) – Contents – Personal Liability – Voluntary Medical Payments – Voluntary Property Damage – Basic Water Damage | $1,077 |
| Enhanced Water Protection | – Sewer Backup Endorsement – Ground Water Endorsement – Overland Water Endorsement – Broad Water Damage Endorsement | $214 |
| Coverage Total: | $1,291 |
A comprehensive home insurance policy protects your property and belongings against all perils except those specifically excluded by the policy. This typically includes: fire and smoke damage, wind and hail damage, lightning strikes, burst pipes (depending on the situation), falling objects (like trees or branches), theft and burglaries, and vandalism.
Base Residence / Dwelling Coverages:
Please note that the coverage limits in the tables below are based on the dwelling coverage of $1 million and can vary by house and carrier.
| Coverage Type | Coverage Details | Average Coverage Amount/Limit |
|---|---|---|
| Dwelling Coverage | Covers the cost to rebuild your home after insured damage. | $1,000,000 |
| Outbuildings (detached structures) | Covers the cost to rebuild the detached structures (i.e. garages, sheds, fences). | $150,000 |
| Contents | Protects your belongings from damage or loss due to covered perils. | $750,000 |
| Personal Liability | Legal & medical costs if someone sues you for injury/property damage. | $1,000,000 |
| Voluntary Medical Payments | Pays limited medical expenses if someone is accidentally injured on your property, regardless of fault | $4,500 |
| Voluntary Property Damage | Covers small amounts for accidental damage you cause to someone else’s property (or damage caused by a minor in your care | $1,500 |
| Basic Water Damage | Protects against sudden and accidental internal water damage (e.g., burst pipes or overflowing appliances | $1,000,000 |
Enhanced Water Protection:
MyChoice recommends getting the enhanced water protection package if you live in flood-prone areas in Canada, as mentioned in our latest study.
| Coverage Type | Coverage Details | Average Coverage Amount/Limit |
|---|---|---|
| Sewer Backup Endorsement | Pays for damage caused by sewage or septic systems backing up into the home. | $100,000 |
| Ground Water Endorsement | Adds protection against damage from ground‑water seepage, which is not covered by standard policies. | $250,000 |
| Overland Water Endorsement | Covers damage from freshwater entering your home from rivers, lakes or heavy rainfall. This is typically optional and recommended for homes in flood‑prone areas. | $250,000 |
| Broad Water Damage Endorsement | A catch‑all rider that may combine overland water, sewer‑backup and ground‑water coverage and may also include protection for seepage or ice‑damming (depending on the insurer) | $250,000 |
Most Popular Home Insurance Endorsments
In Canada, home insurance policies generally exclude certain perils. As a result, you may want to consider adding some of the more popular additional coverages that aren’t typically included in your standard home insurance policy:
Average Home Insurance Cost in Canada by Province
Home insurance costs vary widely across Canada, reflecting differences in climate risk, housing markets, and provincial 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 |
Average Home Insurance Cost in Canada by Dwelling Type
Below is the average home insurance price in Canada, categorized by dwelling type:
| Type of Dwelling | Average Annual Home Insurance Premium |
|---|---|
| Detached | $1,291 |
| Semi-Detached | $1,188 |
| Freehold Townhouse | $1,110 |
Who Provides Home Insurance Quotes in Canada
There are different ways that you can get a home insurance quote across Canada. Here are the four providers that you can use or contact for home insurance rates:
Most Popular Home Insurance Companies in Canada
The following table highlights some of the most popular home insurance providers across Canada, along with the provinces in which they operate.
Take a look at our top companies page for a more detailed overview, as well as some additional insurance providers 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
Certain insurers offer home insurance discounts that can significantly reduce your premium — sometimes by up to 20% when combined. Please note that these discounts depend on your property type, condition, the insurer, and even external conditions such as natural disasters or crime rates in your specific area. Contact your broker or insurer to learn more about the discounts they offer in your area.
Here’s a look at the most common discounts you can get on home insurance in Canada:
| 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
Finding the right home insurance policy can be a challenging task, particularly given the numerous providers available on the market. Using comparison websites like MyChoice to compare various home insurance options is essential to ensure you find the most suitable deal.
Our platform offers a wide range of choices, enabling you to compare different policies from Canada’s leading home insurance companies. You can conveniently view all available options in one place, ensuring you find a policy that’s perfectly tailored to your needs, with the assurance of securing the best deal.
What Details Do You Need To Get a Home Insurance Quote?
To obtain a home insurance quote, it’s important to have specific information ready to ensure you receive an accurate estimate. This is essential whether you are changing home insurance providers or purchasing home insurance for the first time. You’ll need to provide details about the homeowner, property information, prior insurance history, and any current home insurance coverage you have.
Factors That Affect Your Home Insurance Rate in Canada
The price of home insurance in Canada is influenced by a variety of factors, including your location, the type of property you own, and even your credit history. Below are some key elements that impact the cost of home insurance in Canada:
Property Insurance Claims Are On The Rise in Canada
Climate change has dramatically reshaped Canada’s insurance landscape, driving a 379% increase in average annual insurable damages over the past decade. This surge in weather-related losses has made the last ten years the costliest on record for homeowners and insurers alike.
Provinces such as Alberta (+495%), Saskatchewan (+302%), and Ontario (+89%) have seen some of the sharpest increases in disaster-related insurance payouts.
Even provinces with fewer direct climate-related losses are feeling the impact through nationwide home insurance inflation, as risk is shared across the industry. On average, climate-related damages have added approximately $400 per year to Canadian home insurance premiums, which have increased by 76% over the last decade. Notably, Saskatchewan and Alberta have seen the most significant increases, at 106% and 90%, respectively.
| 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% |
At MyChoice, we continue to track these shifts to help Canadians stay informed, compare coverage options, and protect their homes against the growing financial risks of climate change.
Understanding Your Home Replacement Cost
When securing home insurance, it’s crucial to ensure that your coverage is sufficient to fully fund the rebuilding of your house in case it gets completely destroyed. This is known as the replacement cost of your home, which refers to the expenses you would incur to rebuild it. This figure is different from your home’s market value and is determined by factors such as the geographical location, size, and construction materials of your home.
In addition, your home insurance policy will present you with two options: replacement cost coverage or actual cash value coverage. The key difference lies in how the compensation is calculated. With replacement cost coverage, you receive the value of lost items or repairs without any deduction for depreciation, essentially providing you with compensation based on today’s market value. In contrast, actual cash value coverage means your insurer compensates for the value of your items, considering their current, depreciated state.
Different insurers may use varied approaches to calculate the replacement cost, and you also have the option to obtain an independent appraisal from a third party to ascertain this cost. Therefore, it is essential to carefully consider these options and choose the one that best suits your needs.
Commonly Asked Questions About Home Insurance
How much does home insurance cost in Canada?
The national average home insurance premium in Canada is $1,291 per year.
In Canada, the cost of home insurance varies by province due to different risks at play in specific regions, like regional weather patterns, crime rates, and building costs. Our table above shows the average cost by province.
Why has the price of home insurance gone up in 2025?
The price of home insurance in 2025 has increased primarily due to inflation in replacement costs and an increase in catastrophic weather events across Canada, resulting in higher claim volumes.
Over the last decade, average annual insurable damages have increased by 379%, and home insurance premiums have climbed 76% nationally to keep pace with these growing risks.
Are you required to have home insurance in Canada?
The short answer is no, you are not legally required to have a home insurance policy in Canada.
However, it is typically required by mortgage lenders as a condition of the loan agreement. If you have a mortgage on your property, the lender will usually require you to have home insurance to protect your investment in case of damage or loss.
For homeowners who own their property outright without a mortgage, there’s no legal requirement to have home insurance, but it’s still highly recommended.
What is a home insurance peril?
A peril is any risk that can lead to financial loss, posing a risk to your property. Typical perils covered by home insurance include fire, theft, and water damage, among others, as these incidents can cause harm to your home or expose you to liability risks.
What perils would home insurance not typically cover?
The short answer is yes, generally paying annually will be cheaper than monthly. Some insurers offer a discount of up to around 7%.
What should the best home insurance cover?
You should pick an insurance policy that covers most forms of catastrophic risks to the home, as these are the most common ways that major damage happens to a home.
For a comprehensive coverage, you should also consider getting an insurance policy that covers specific forms of damage, also known as perils. You may want an insurance policy that covers flooding from an internal problem, which will protect you if you have a burst pipe.
In a nutshell, you should try to seek out an insurance policy with the most coverage that you can afford, but you should avoid an insurance policy that charges you extra for coverage that is redundant or unnecessary.
Does home insurance differ by province?
While there are consistencies across provinces, like the type of home insurance policies available, for example. There will be a difference in price as this relies on several different factors, which will vary based on where you live.
What happens when I receive a home insurance quote I like on MyChoice?
When you complete our quoting form, you’ll be shown a list of rates, and we assume that the quote you select is the most competitive one.
After that, in most cases, one of our broker partners will contact you promptly to determine if you wish to proceed with purchasing the policy. Alternatively, you can call the brokerage directly using the number we provide. The broker will be able to answer any questions you have.
In the scenario where your cheapest rate is from a direct insurer, think Square One, for example, you will have the option to purchase your policy online with them, 24/7, just follow the link once you see the rate and complete the purchase with them. This process would be similar for any of our other direct insurance partners.
What home insurance companies will I get to see quotes from?
MyChoice partners with over 30 top home insurance companies in Canada. We provide a mix of direct insurers and traditional insurance companies, giving you the ultimate amount of choice and convenience.
Is a credit check required for home insurance in Canada?
In Canada, except in Newfoundland and Labrador, home insurance companies are permitted to review your credit history. Possessing a high credit score could qualify you for discounts on your rates, whereas a lower score typically doesn’t lead to higher rates – it is not required, though.
Does mortgage insurance differ from home insurance?
Although both home insurance and mortgage insurance provide security for various aspects of your home, they are distinct types of insurance catering to different needs.
Mortgage insurance safeguards you and your lender in case you default on your mortgage payments, while home insurance is designed to cover the physical structure of your home against various perils.