Standard Home Insurance in Ontario

Unlike car insurance, having a home insurance policy is not mandatory in Ontario. However, if you have a mortgage on your home, most lenders will require you to have home insurance. Even if you are mortgage-free, it is a good idea to have a standard home insurance policy in order to protect your home and everything inside it.

The exact details of your home insurance coverage in Ontario will differ depending on the amount of coverage you select. Here are a few of the most standard coverage options that may be right for you and your home:

Dwelling

This insurance covers the physical building and structure that you live in – that means

your physical home itself. If your house ends up being damaged by one of the following,

you may be protected under your dwelling coverage:

• Fire
• Lightning
• Smoke
• Theft
• Wind
• Car / aircraft impact
• Explosion
• Falling objects

Every policy is different, so make sure you talk to your broker to find out exactly what’s covered under your plan.

Contents

This covers your belongings inside your home. Things including your furniture, clothing, electronics, jewellery and sporting equipment could all be covered in the event of loss or damage.

Personal liability

If someone is injured on your property, you might be responsible for the associated legal and medical costs. It might seem really unlikely, but if it does happen, the costs could add up quickly. This part of your policy can kick in to help cover any of these costs.

Personal liability also can cover you in the event of damages to neighbouring houses caused by your house or property.

If you would like to learn more about the different types of home insurance coverage, a great resource is the Financial Services Commission of Ontario website. They break down all the different types of coverage and explain everything in more detail.

What is not covered under a standard home insurance policy?

When you purchase a home insurance policy in Ontario, there are specific things that will not be covered. If you break the rules of your policy, it can become void. The following three things are not covered under a standard home insurance policy:

Home sharing

Many people earn extra income through short term rentals like Airbnb or HomeAway. It’s sometimes referred to as home sharing. It’s important to tell your insurance broker if you’re a host on Airbnb or any other platform. If you don’t disclose this information and damage occurs to your property, your policy may be considered void.

Vacant home

If your home is empty for a long period of time, your home insurance coverage may become void. Most policies will not allow a property to be vacant for more than one month. If you are planning on taking an extended vacation, make sure you talk to your insurance broker first to make your home still has the coverage you need.

Failing to maintain

If you neglect the maintenance of your home and allow it to fall into a state of disrepair, you may not be covered. For example, if your roof is missing shingles and you incur water damage as a result, your insurance company might decide that you will not be covered for that incident.

Additional coverage options for your home insurance policy

If you decide you need more coverage than a standard policy offers, there are additional coverage options you can add on to your policy. These are also sometimes known as riders or endorsements. Below are some of the most common endorsements:

Business Coverage

If you run your own business out of your home, you will require this additional coverage. This is because a standard home insurance policy will not cover you for business reasons. If you do not have business coverage, and there is damage to your house as a result of your business operations, you may not be covered.

Equipment Breakdown

This type of additional coverage applies when you have a sudden and/or unexpected failure to equipment in your home. Some things that might be covered under this endorsement include:

• Air conditioning unit
• Furnace or other heating system
• Security system
• Kitchen appliances

Sewer backup

A sewer backup is every homeowner’s nightmare. If this isn’t included in your policy, you might want to consider adding it on. A sewer backup can cause a lot of damage and the costs can add up quickly.