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Home Insurance

Compare home insurance in Canada

Finding the right home insurance can save you thousands of dollars and keep your property protected.

As the rates of home insurance have increased by 5.28% in the year 2025, the importance of knowing how to compare home insurance has never been more crucial among Canadian homeowners.

This guide explains all about comparing policies, the coverage and finding the most suitable cover to protect your home.

Home insurance coverage types

When you compare home insurance providers, you’ll encounter three main coverage levels, and each offers different levels of protection:

• Basic Coverage (Named Perils): This is the most affordable option, but it provides limited protection. Your policy only covers specific risks listed in your contract, such as fire, lightning, explosion, smoke, theft, and vandalism. If damage occurs from something not explicitly named in your policy, you won’t be covered.
• Broad Coverage: This middle-tier option covers your home’s structure on a named perils basis but provides all-risks coverage for your personal belongings. It’s a popular choice for homeowners who want more protection for their possessions without paying for comprehensive coverage.
• Comprehensive Coverage (All-Risks): This is the most expensive but offers the widest protection. Everything is covered unless it’s specifically excluded in your policy. Instead of proving your claim falls under a named peril, the burden shifts to the insurer to prove it’s excluded. This is the most common choice for standard homes.

Evaluating policy limits

The amount of your dwelling coverage limit must be based on the replacement cost of your home and not its market value.

Replacement cost will be the sum of money you will need to construct your home afresh using similar materials and construction techniques.

Many homeowners underinsure by basing limits on their purchase price, which can leave them seriously underprotected.

For personal property, most policies offer coverage equal to 50-70% of your dwelling limit. If your home is insured for $500,000, your belongings might be covered for $250,000 to $350,000.

But certain items like jewelry, art, and electronics often have sub-limits (usually $2,000-$5,000 per category). When you compare home insurance providers, check these sub-limits carefully and consider adding endorsements for valuable items.

Liability coverage usually starts at $1 million, but you can increase it to $2 million or more. This protects you if someone is injured on your property or if you accidentally damage someone else’s property.

Given the cost of lawsuits in Canada, many experts recommend carrying at least $2 million in liability coverage.

Understanding deductibles

Your deductible is the amount you pay from your pocket before your insurance begins. Most Canadian insurers offer deductible options ranging from $500 to $2,000, with $1,000 being the average.

Higher deductibles mean lower premiums, while lower deductibles mean higher premiums. If you choose a $2,000 deductible instead of $500, you might save 15-25% on your annual premium.

However, you need to be comfortable paying that $2,000 if disaster strikes.

Some policies include special deductibles for specific perils. So, when comparing home insurance quotes, ask about all applicable deductibles.

A policy with a low standard deductible might have high special deductibles that could catch you off guard. Calculate what you can afford to pay if you need to file a claim, and choose your deductible accordingly.

Reviewing policy exclusions

When you compare home insurance, understanding exclusions can prevent nasty surprises when you file a claim. Common standard exclusions include the following:

• Flood damage (overland water)
• Earthquake damage
• Sewer backup
• Wear and tear or lack of maintenance
• Intentional damage
• Certain types of water damage (like seepage)
• Damage from pests or vermin
• Acts of war or nuclear incidents

Many Canadians assume their standard policy covers flooding, but it usually doesn’t.

Standard policies cover water damage from burst pipes or storm damage to your roof, but not water that enters your home from ground level during heavy rain.

The 2024 Ontario flash floods caused $990 million in insured losses, highlighting why understanding water coverage is critical.

When comparing home insurance providers, create a list of risks specific to your area. If you live near a river, then you need flood coverage. If you live in an earthquake zone? Add earthquake protection.

The goal is to identify gaps in standard coverage and address them through add-ons or endorsements.

Comparing home insurance premiums and value

When you compare home insurance quotes, you’re evaluating the cost relative to the coverage provided. A cheap policy with limited coverage and high deductibles might cost you more in the long run.

Canadian home insurance rates increased by 7.66% in 2024 and another 5.28% in 2025, well above inflation rates. Alberta saw the highest increase at 9.07% year-over-year. These increases stem from climate-related losses and inflation in construction costs.

Factors that affect your premium

• Home age and condition
• Location (proximity to fire stations, flood zones)
• Claims history
• Credit score
• Security features
• Roof condition and age
• Heating and electrical systems
• Amount of coverage chosen
• Deductible selected

Add-ons and optional coverage

When you compare home insurance policies, examine what endorsements are available and how much they cost. Here are the most essential add-ons to consider:

Not everyone needs every add-on. Assess your specific risks based on your location, home features, and valuables. A home far from water sources probably doesn’t need flood coverage, but one in a basement-prone area definitely needs sewer backup protection.

Claims process

An insurer’s claims process can make the difference between a smooth recovery and months of frustration. When you compare home insurance companies, investigate how they handle claims. Key questions to ask include:

• What’s the average time to settle a claim?
• Can I file claims online or via app?
• Do you have 24/7 claims support?
• How are contractors selected for repairs?
• What documentation do you require?
• Do you offer emergency services? (temporary housing, emergency repairs)

What to look for

You should look for insurers with dedicated claims adjusters and clear communication channels. Some companies assign you a single adjuster who handles your claim from start to finish, while others use a team approach. Neither is inherently better, but understanding the process helps set expectations.

Check online reviews specifically about claims experiences. When comparing home insurance quotes, a pattern of complaints about denied claims or slow processing should raise red flags. Remember, you’re buying peace of mind as much as financial protection.

The claims process also includes how the insurer pays out. Some offer replacement cost coverage automatically, while others pay actual cash value first (accounting for depreciation) and reimburse the difference after repairs. Replacement cost coverage is more valuable but might cost slightly more.

Customer service

Customer service quality becomes crucial when you need help or have questions, so you need too evaluate their accessibility and responsiveness when you compare home insurance providers. Some service factors to assess are:

• Available contact methods (phone, email, chat, app)
• Hours of operation
• Average wait times
• Availability of local agents or brokers
• Online account management features
• Ease of making policy changes
• Bilingual support (if needed)

Test the customer service before buying. Call with questions and note how helpful and knowledgeable the representative is.

Check if they clearly explain coverage or pressure you into buying quickly. Compare home insurance companies based on these interactions, because they reveal how you’ll be treated as a customer.

Discounts and savings

Discounts can significantly reduce your premium, so you need to ask about every available discount when you compare home insurance quotes. Common discounts include:

• Bundling home and auto insurance (15-25% savings)
• Claims-free history (up to 15% off)
• Security systems (5-15% discount)
• Fire alarms and smoke detectors (5-10% off)
• New home (10-15% reduction)
• Mortgage-free home (up to 10% discount)
• Mature homeowner (over 50-55 years old)
• Professional association memberships
• Loyalty discounts for multi-year customers
• Pre-authorized payment discounts

Checking insurer reputation and stability

An insurer’s financial health matters just as much as its coverage. When you compare home insurance companies, research their reputation and ability to pay claims.

Ways to assess insurer reputation

Check their financial ratings from agencies like A.M. Best or DBRS. These organizations evaluate insurers’ financial strength and ability to meet obligations.

Look for ratings of A or higher. Major Canadian insurers like Intact Financial Corporation, Desjardins Group, Aviva Canada, The Co-operators Group, and others usually maintain strong ratings.

Read customer reviews on independent platforms like Google, Trustpilot, or the Better Business Bureau. Look for patterns in complaints. One bad review doesn’t tell the whole story, but dozens of complaints about denied claims or poor service should concern you.

The Insurance Bureau of Canada provides resources about licensed insurers. Verify that any company you’re considering is properly licensed in your province. When comparing home insurance providers, stick with established companies with proven track records.

Consider how long the company has operated in Canada. New insurers might offer attractive rates to gain market share, but established companies with decades of experience might provide more stability during catastrophic events.

Also, check complaint ratios if available. These show how many complaints an insurer receives relative to its market share. A high complaint ratio suggests systemic problems with service or claims handling.

Making your final decision

After gathering quotes and information, it’s time to decide. When you compare home insurance policies, create a comparison spreadsheet with these columns. Essential comparison points include:

• Insurer name
• Annual premium
• Coverage type (basic/broad/comprehensive)
• Dwelling coverage limit
• Personal property limit
• Liability coverage
• Deductible amounts
• Key exclusions
• Available add-ons and costs
• Discount eligibility
• Customer service rating
• Claims process rating
• Financial stability rating

Don’t make your decision on price alone. The cheapest policy might have coverage gaps that cost you thousands during a claim. Similarly, the most expensive policy isn’t necessarily the best as it might include coverage you don’t need.

Consider the total value package. A policy that costs $100 more annually but includes sewer backup coverage (worth $100-$150 as an add-on) actually offers better value. When comparing home insurance quotes, calculate the cost of bringing each policy to the same coverage level.

Read the entire policy document before signing. It’s tedious, but it ensures you understand what you’re buying. Pay special attention to exclusions, conditions, and claims procedures. If something isn’t clear, ask questions before committing.

Finally, review your coverage annually. Your home’s value, your possessions, and market conditions change. What made sense last year might not be adequate today. Set a calendar reminder to compare home insurance quotes each renewal period to ensure you’re still getting the best value.