Types of Home Insurance in Canada: A Guide

Whether you’re raising a family in the suburbs, sharing a downtown apartment with roommates, or escaping to a lakefront cottage, your home is more than just a place to live. It’s your sanctuary — and it’s worth protecting.

While you can’t always prevent the unexpected, you can prepare for it. Home insurance can help protect your home, belongings, and finances if something goes wrong. And while home insurance isn’t legally required in Canada, mortgage lenders and landlords require it.

Not sure what type of insurance you need? This guide breaks down the basics, including what does home insurance cover, the types of policies, and how to buy home insurance in Canada.

What is home insurance?

Home insurance is a type of insurance policy designed to protect your home, your belongings, and other structures on your property, such as a shed or detached garage.

If something unexpected happens — such as a fire, theft, vandalism, certain types of water leaks, or damage caused by hail or wind — your policy may help cover the cost of repairs or replacing damaged items, depending on the coverage you have. It can also help pay for additional living expenses if you need to stay elsewhere due to a covered event.

Home insurance can also include personal liability coverage. If you’re found legally responsible for accidentally injuring someone or damaging their property, your policy may help cover your expenses and other eligible costs, up to the limits of your coverage.

What is not covered by home insurance in Canada?

Home insurance is designed to help protect against sudden and unexpected loss or damage. That generally doesn’t cover damage caused by normal wear and tear, lack of maintenance, or any intentional acts.

Not every risk is automatically included in a standard home insurance policy. Depending on your insurer and coverage, protection for events — such as earthquakes, sewer back-ups, and overland flooding — may be excluded and may require additional coverage.

There may also be limits on how much coverage is available for certain high-value items, such as jewelry, artwork, and collectibles.

The good news is that extra protection can often be added. RBC Insurance offers additional coverage for sewer back-ups, major renovations, high-value items, and even cyberattacks.

Types of homeowners insurance in Canada

Not all homes need the same type of insurance. The right coverage depends on the type of property, whether you own or rent it, and how often you live there. Here are some of the most common types of home insurance:

Homeowners insurance

Homeowners insurance (also called house insurance) is designed for people who own and live in a house or similar dwelling. It offers the broadest level of protection for both your home and your belongings.

Homeowners insurance isn’t mandatory under Canadian law, but most mortgage lenders require it as a condition of financing. While optional, it can help protect you from the financial impact of unexpected events, such as fire, vandalism, weather-related damage, and theft.

Here’s what’s typically covered:

Depending on your home and where you live in Canada, you may want to consider a few add-ons for risks that aren’t automatically included in a standard policy. Common add-ons include:

Condo insurance

Condo insurance (also called condominium owner insurance) is a type of insurance policy designed for people who own a condominium unit. It helps protect your personal belongings, the parts of your unit that you’re responsible for, and your personal liability if you’re found legally responsible for injuring someone or damaging their property.

Unlike homeowners insurance, condo insurance works a little differently because the responsibility for the structure is shared between you and the condo corporation. In most cases, the condo corporation’s insurance covers the building itself and common areas, such as hallways, elevators, lobbies, and amenities. It may also cover certain original fixtures or features within individual units.

However, this coverage may not fully protect your belongings, upgrades, or personal liability, which is where condo insurance can help. Generally speaking, a condo insurance policy may help cover:

Because coverage responsibilities are shared, it’s important to understand what the condo corporation’s policy covers and what falls into your domain of responsibility. It’s a good idea to arrange condo insurance coverage before taking possession of your unit.

For example, if a leak from your unit damages a neighbouring unit, you could be on the hook for paying for some of the resulting costs. Condo insurance may help cover eligible expenses, depending on the circumstances and your coverage.

Tenant insurance

If you rent your home, you might assume your landlord’s insurance covers your belongings. Unfortunately, that’s usually not the case. While a landlord’s policy generally protects the building itself, your furniture, electronics, clothing, and other personal items are typically your responsibility.

That’s why if you rent or lease a home, apartment, or condo, it’s a good idea to get tenant insurance — a type of insurance policy designed specifically for renters.

On the upside, tenant insurance typically costs much less than homeowners insurance, but still offers valuable protection for:

Cottage insurance

Seasonal home insurance (also called cottage insurance) is a type of insurance designed to help protect your seasonal property, the belongings you keep there, and your personal liability if you’re found legally responsible for injuring someone or damaging their property. It usually provides coverage for:

Risks that are typically covered include fire, theft, vandalism, some weather-related damage, and damage caused by animals — although different policies will have different levels of coverage. RBC Insurance offers flexible coverage options so you can choose the level of protection you need.

Coverage can also vary depending on the property and how you use it. For example, you may want to consider adding boat, ATV, or snowmobile insurance. If you’re worried about overland flooding or sewer back-ups, you can top up your policy for water damage coverage.

A licensed RBC Insurance advisor can work with you to figure out what best suits your situation.

How to choose the right home insurance for you

Choosing the right home insurance doesn’t have to be overwhelming. Here are a few things to consider:

1. What type of home do you own or rent?

The type of property plays a big role in determining the coverage needed:

2. What optional coverage should you consider?

Think about what coverage add-ons make sense for where you live and what’s important to you.

For example, overland water coverage may be worth considering if you’re in an area prone to flooding. Sewer back-up coverage is likely smart if your home has a sump pump or septic system.

Also consider the value of contents inside your home. If you own expensive items — like jewelry, artwork, or collectibles — check the limits on your policy, since there are usually caps on high-value possessions.

Other add-ons could include coverage for major home renovations, cyberattacks and identity theft, or if you rent your home on a short-term basis.

For all these scenarios, insurance endorsements may help fill any gaps and provide additional protection.

3. What deductible can you afford?

Your deductible is your share of the bill when you make a claim. A higher deductible usually lowers your premium, but it also means paying more out-of-pocket costs if something goes wrong. Consider what amount you’d be comfortable paying if you have to make a claim.

With RBC Insurance, the standard deductible is typically $1,000, but you may be able to increase or decrease that amount. If you are claims free, you may be eligible to purchase the Disappearing Deductible Endorsement.

How to buy home insurance

Your home is more than four walls and a roof. It’s where you relax after a long day, celebrate milestones, store treasured belongings, and make memories with the people who matter most. The right home insurance policy can help secure what you’ve worked hard to build and provide support when the unexpected happens.

No matter what type of home you live in, there’s a policy to protect it. By considering factors like the type of property you own or rent, the coverage you want, and the deductible you’re comfortable with, you can find a policy that fits your situation.

Need insurance for your home or want to switch your policy or provider? You can quickly get a quote online or book a call with a licensed RBC Insurance advisor to learn more about home insurance.