TRENDING: Developers Push For Foreign Buyer Ban Changes To Spark Presales

Insurance

Explore how insurance works in Canadian real estate — what types exist, why they’re required, and how they protect buyers, lenders, and homeowners.

Insurance

May 22, 2025


What is Insurance?

In real estate, insurance refers to coverage that protects homeowners, lenders, and investors from financial loss due to property damage, liability claims, or other risks.

Why Insurance Matters in Real Estate

In Canadian real estate, insurance is essential for mitigating risk and meeting legal or mortgage lender requirements. Key types include:

Homebuyers must show proof of insurance before closing, and policy limits, deductibles, and exclusions vary.

Understanding insurance allows homeowners and buyers to properly assess risk, select appropriate coverage, and protect their property investment.

Example of Insurance in Action

The buyer provides proof of home insurance with $1 million in liability coverage as a condition of their mortgage approval.

Key Takeaways

  • Provides financial protection from real estate risks.
  • Required by lenders before closing.
  • Includes multiple coverage types.
  • Essential for all property owners.
  • Policy details must be reviewed carefully.

Related Terms

  • Home Insurance
  • Title Insurance
  • Mortgage Insurance
  • Liability Coverage
  • Coverage Limit

Additional Terms

Land Banking

Gentrification is the process by which a traditionally lower-income neighbourhood undergoes revitalization and attracts higher-income residents,. more

Land Assembly

Land assembly is the process of acquiring and consolidating multiple adjacent parcels of land under one ownership, typically for redevelopment or. more

Joint Venture

A joint venture in real estate is a partnership between two or more parties to develop, own, or operate a property or project, sharing risks, costs,. more

Infill Development

Infill development is the process of building new housing, commercial buildings, or amenities on vacant or underutilized land within existing urban areas.. more

Inclusionary Zoning

Inclusionary zoning is a municipal planning tool that requires or incentivizes developers to include a percentage of affordable housing units in new. more

Impact Fees

Impact fees are charges levied by municipalities on new developments to offset the cost of additional public infrastructure and services required by. more

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