Opinion: The Bank Of Canada's Subtle Housing Warning

Home Insurance

Learn what home insurance covers in Canadian real estate, why it’s required for mortgages, and how it protects homeowners from major financial loss.

Home Insurance

May 10, 2025


What is Home Insurance?

Home insurance is a policy that protects homeowners from financial loss due to damage, theft, or liability related to their property or its contents.

Why Home Insurance Matters in Real Estate

In Canada, home insurance is a standard requirement for most mortgage lenders and a crucial safeguard for property owners. It provides coverage in cases such as:

  • Fire or natural disaster damage
  • Theft or vandalism
  • Liability for injuries on the property
  • Loss of use if the home becomes uninhabitable

Policies typically include dwelling coverage, personal property protection, and liability insurance. Optional add-ons—called riders — can cover specific risks like sewer backups, floods, or valuable items.

Premiums are influenced by factors like location, property type, age, replacement cost, and claims history. A higher deductible generally results in lower premiums.

Homeowners should shop around for the right policy, ensure they have adequate replacement coverage, and review terms annually. Proof of insurance is usually required before closing a real estate transaction.

Understanding home insurance ensures financial protection in emergencies and compliance with mortgage terms.

Example of Home Insurance

A homeowner in Ottawa experiences a kitchen fire that causes $30,000 in damage. Their home insurance policy covers the repair costs after the deductible is applied.

Key Takeaways

  • Protects against property damage, theft, and liability.
  • Required by most mortgage lenders.
  • Covers the structure, contents, and legal claims.
  • Customizable with riders for added protection.
  • Vital for financial security and risk management.

Related Terms

  • Mortgage Lender
  • Property Insurance
  • Title Insurance
  • Closing Costs
  • Replacement Value

Additional Terms

Recourse Loan

A recourse loan is a type of loan where the lender can pursue the borrower’s personal assets, beyond the collateral, in the event of default.. more

Pari Passu

A pari passu clause is a contractual provision ensuring that multiple creditors share equally in repayment priority from the borrower’s assets.. more

Non-Recourse Loan

A non-recourse loan is a type of loan where the lender’s only remedy in case of default is to seize the collateral property; the borrower is not. more

Net Operating Income

Net operating income (NOI) is the total income generated by a property after operating expenses are deducted but before taxes and financing costs.. more

Mechanic's Lien

A mechanic’s lien is a legal claim by a contractor, subcontractor, or supplier for unpaid work or materials provided for a property.. more

Lis Pendens

Lis pendens is a legal notice filed in the land registry indicating that a property is subject to ongoing litigation that may affect its title.. more

More For You

Latest CMHC Report Confirms What We Already Know — Toronto Is In Crisis

Latest CMHC Report Confirms What We Already Know — Toronto Is In Crisis
Shutterstock

There’s no place in Canada where homebuilding is as depressed as it is in Toronto. That reality was underscored earlier today when Canada Mortgage and Housing Corporation (CMHC) released its fall housing supply report, showing that building activity plunged 44% in the first half of 2025 compared to the same period in 2024. On a population-adjusted basis, the federal housing agency said that starts are at the lowest level since 1996 — putting them a hair shy of a 30-year low.

The overall downtrend was driven by a 60% drop in condominium starts, and reflects a pullback in investor demand as cancellations and delays continue to characterize the market.

Keep ReadingShow less

Sightline Properties Planning 4 Towers Up To 45 Storeys Near Renfrew Station

​A rendering of the proposal for 2808-2888 E Broadway, 2813-2881 E 10th Ave, 2528-2580 Kaslo St.

A rendering of the proposal for 2808-2888 E Broadway, 2813-2881 E 10th Ave, 2528-2580 Kaslo St. / Arcadis, Sightline Properties

With the City of Vancouver approving the new Rupert and Renfrew Station Area Plan earlier this year, the stage is now set for a large-scale redevelopment of the area, and few may get larger than what Vancouver-based real estate developer Sightline Properties is planning.

The subject site of the proposal is a 26-lot land assembly that includes 2808-2888 E Broadway, 2813-2881 E 10th Avenue, and 2528-2580 Kaslo Street. The land assembly is made up of two rows of 13 single-family homes located about half a block west of Renfrew Street and approximately two blocks north of the Millennium Line SkyTrain's Renfrew Station.

Keep ReadingShow less

Receiver Seeks Sale Of Midtown Toronto Site Approved For 32-Storey Flatiron

Receiver Seeks Sale Of Midtown Toronto Site Approved For 32-Storey Flatiron
Rendering of 3736-3750 Bathurst Street/WZMH Architects

After the properties were placed under receivership in June, TDB Restructuring Limited has taken next steps in respect of 3742, 3748, and 3750 Bathurst Street in Midtown Toronto, bringing on Lou Grossi of Intercity Realty to market and sell the parcels. The addresses at the southwest corner of Bathurst Street and Wilson Avenue were set to accommodate a 10-storey mid-rise and 32-storey flatiron tower, and approvals for the development were granted by City Council at its February 2024 session.

According to a listing from Intercity, this represents “a rare opportunity to acquire a prime high-rise site” and the sale would be on an “as is, where is basis” without warranties or representations from the vendor. “The Receiver’s objectives are to maximize the sale price of the property and complete a disposition with limited, or if possible, no conditions,” the listing goes on to say.

Keep ReadingShow less

Foreclosed Vancouver Mansion Of Thind Properties CEO Sold For $13.6M

​The backyard of the home at 3138 W 51st Avenue in Vancouver.

The backyard of the home at 3138 W 51st Avenue in Vancouver. / Macdonald Realty

The trouble for Burnaby-based real estate development company Thind Properties started on October 11, 2024, when Toronto-based private equity real estate investment firm KingSett Capital filed a receivership application against Thind's District Northwest project in Surrey.

Then the floodgates opened.

Keep ReadingShow less

August Marks "Longest Stretch Of Rent Declines Since The Early Pandemic"

August Marks "Longest Stretch Of Rent Declines Since The Early Pandemic"
Apartment for rent sign displayed on residential street/Shutterstock

According to the latest rent report from Rentals.ca and Urbanation, August marked the eleventh consecutive month in which the national average rent declined on a year-over-year basis. This is also "the longest stretch of rent declines since the early pandemic period," says the report.

With just shy of a year of sliding rents under the nation's belt, the average price a Canadian pays to rent their home now sits at $2,137, down 2.3% from August 2024.

Keep ReadingShow less

Residential Construction In Ontario Faces Its Darkest Hour

Residential Construction In Ontario Faces Its Darkest Hour
Shutterstock

Ancient Greek philosopher and polymath Aristotle once professed that, “It is during our darkest moments that we must focus to see the light.”

It is sage advice and words that Ontario’s residential construction industry — and various levels of government — should take to heart.

Keep ReadingShow less

Parallax Proposes 19-Storey Student Residence Near University Of Toronto

Parallax Proposes 19-Storey Student Residence Near University Of Toronto
333 College St/Rafael & Bigauskas Architects

Parallax Development Corporation has filed plans for a 19-storey, 746-bed private student residence near the College Street and Spadina Avenue intersection in Toronto's Kensington-Chinatown neighbourhood. The area is also home to the University of Toronto, which has its main campus located just east of the proposed development. The site is also in close proximity to Toronto Metropolitan University.

Plans were filed in late-August in favour of an Official Plan and Zoning By-law Amendment application, as well as a Site Plan Approval application to permit the proposed built-form and use. This most recent application succeeds prior filings beginning in 2014 that resulted in a 12-storey mixed-use building being permitted on the site in October 2017, alongside the land being re-designated from Neighbourhoods to Mixed Use Areas under the City's Official Plan.

Keep ReadingShow less

Fengate Forges Ahead With “Landmark” Purpose-Built Rental Site Zoned For 44 Storeys

Fengate Forges Ahead With “Landmark” Purpose-Built Rental Site Zoned For 44 Storeys
Rendering 4-10 Beamish Drive/WZMH Architects

Just over a month after announcing they had closed on the sale of the site, investment manager Fengate Asset Management and development and construction company High Rise Group have advanced plans to bring a 44-storey purpose-built rental to 4, 6, 8, and 10 Beamish Drive. The site in Etobicoke has already been rezoned for the proposed tower, and now the developer is seeking Site Plan Approval, which gives the City a chance to review the technical design and functional details of the project.

Fengate announced the acquisition of the site on July 21, describing it in a press release as a “landmark” and “transit-oriented parcel” steps from the Kipling Transit Hub. “Located at the intersections of Dundas Street West, Bloor Street West, and Kipling Avenue, the site is well positioned with direct access to TTC subway lines, GO Transit, and MiWay bus services, providing seamless connectivity across the Greater Toronto and Hamilton Area (GTHA),” the release said.

Keep ReadingShow less
Privacy PolicyAbout UsTerms of UseAdvertise with UsJobsContact UsRSS Feed
2025 © STOREYS Publishing Inc. | All Rights Reserved