How does home insurance work?

For homeowners in Canada, the prospect of home insurance may seem like just another monthly expense. Although it may add to your living costs, home insurance will reimburse you should there be a burglary or if your home is somehow damaged by a cause identified in your policy. Homeowners insurance is incredibly valuable as it can help replace, repair and rebuild your cherished belongings should something happen.

So, why is home insurance so important?

For most Canadians, owning a home is the largest investment they’ll ever make. If anything happens to your property or its contents without a home insurance policy, your investment disappears and you’re left with nothing. Home insurance is meant to cover those unforeseen circumstances, giving you peace of mind in knowing your financial investment is thoroughly protected. In Canada, home insurance is not required to own or live in a home; nonetheless, no one wants to be the example of someone who didn’t have home insurance and lost everything due to severe weather, fire, burglary or theft.

 What is covered in a home insurance policy?

Liability coverage is usually provided in homeowners insurance. This protects you, the homeowner, should someone be injured on your property or if property damage has been deemed your responsibility. Temporary living expenses are also typically included, should you be displaced from your home due to an insured loss. Do keep in mind every policy is different, so it’s important to clarify limitations with your insurance broker. Always understand what is covered and the contractual obligations of a home insurance policy which need to be fulfilled in order for it to remain active.

What is NOT covered in a home insurance policy?

When it comes to property damage and the weather, events such as hurricanes are covered whereas earthquakes and floods are not. Both property damage and theft of personal property are covered under home insurance up to the policy’s limit. If you have something of high value in your home, you may need additional coverage or a special endorsement included in your policy. Depending on the circumstance, a company can exclude coverage for events relating to personal negligence or, for example, aggressive acts against a neighbour. Always verify the exclusions contained in your home insurance policy before signing.

Why YOU should have home insurance.

When you file a claim on your home insurance policy following property damage or destroyed contents, you don’t need to worry about how you’re going to recoup your investment. Even if it’s hundreds of thousands of dollars, if you’re insured, all you need to do is file a claim and your homeowners’ insurance will cover it. If you’ve suffered a loss under a home insurance policy, call your local insurance agent and begin the steps to towards making a formal claim. An adjuster will then work with you to assess the damage and determine your entitled compensation.


It’s really that simple – see homeowners’ insurance as a safety net sheltering all your cherished belongings. You’ll never regret protecting the things you love.