Your house and home insurance go hand in hand. Buying a home in Canada is a big financial commitment. Home insurance helps to protect one of the biggest investments you will make in your lifetime. So, finding the best rates and coverage is a priority for homeowners.

You can legally own a home in Canada without insurance. However, not having insurance is ill-advised. If your home has a loss from an insured peril, you will have to pay for repairs out of your pocket. You’d also be on the hook to replace lost or stolen items after a break-in. Here’s why you should always be insured:

  • Protect your investment: Insurance protects your home from a variety of threats. It protects your investment.

  • Reduce financial loss: Insurance reduces the chance of financial loss. Without it, fire or flood which you have no control of could cripple you financially.

  • Proof of insurance to get a mortgage: Mortgage lenders require proof of insurance for you to secure a mortgage.

  • Claims are on the rise: There has been an increase in floods, fires, and other weather-related threats. Insurance protects you from them.

  • Peace of mind: It is reassuring to simply have peace of mind in knowing you are covered if your home is damaged.

  • Protects you from personal liability (legal responsibility for events on your property). You can also add endorsements and additional coverage to customize your policy.

  • There are many different options for property insurance: homeowners, condo unit owners, tenants, landlord rental property insurance, and commercial property insurance.

Types of Home Insurance Coverage

When considering home insurance, it’s essential to understand the different types of coverage available. This ensures that you are adequately protected for the unexpected.

  1. Dwelling Coverage: This covers the physical structure of your home, including the walls, roof, and foundation. If your home is damaged by a covered peril like fire or windstorms, your insurance will pay for repairs or rebuilding.

  2. Personal Property Coverage: This protects your belongings, such as furniture, electronics, and clothing. If these items are damaged or stolen, your insurance will help you replace them.

  3. Liability Coverage: If someone is injured on your property or if you accidentally cause damage to someone else’s property, this coverage helps with legal expenses and potential settlements.

  4. Additional Living Expenses (ALE): If your home becomes uninhabitable due to a covered event, this coverage will help pay for temporary living arrangements, such as hotel stays, until repairs are completed.

  5. Endorsements and Add-ons: Depending on your needs, you can customize your policy with additional coverage, such as for high-value items like jewelry or artwork, or specific perils like sewer backup or earthquakes.

Common Misconceptions About Home Insurance

There are a few misconceptions about home insurance that can leave homeowners underinsured or unaware of their actual coverage.

  • “Flooding is automatically covered.”
    Many homeowners mistakenly believe that standard home insurance policies cover flooding. However, flood insurance is typically a separate policy, especially for homes in high-risk areas.

  • “All personal belongings are fully covered.”
    While personal property coverage is included, there are often limits on high-value items such as jewelry, antiques, or collectibles. These items may need additional endorsements for full protection.

  • “Home insurance covers everything.”
    Some homeowners assume that all possible damages are covered by their insurance. In reality, most policies exclude specific perils, like gradual wear and tear, mold, or pest infestations, which require regular maintenance to avoid.

BCU Insurance has a large selection of home insurance providers so we can offer personalized coverage and great rates. We’ll compare the best quotes for your home insurance needs to find you the lowest rate. You’ll get the coverage designed just for you for a great price!

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