Home insurance for Canadian residents

Insurance companies consider many different factors when calculating your home insurance premiums. Things like where you live, the type and age of your building, type of wiring and heating systems, your claims history, and the types and amounts of insurance coverage your home needs are some of the considerations used to determine the cost of your home insurance premium.

The easiest way to get a better idea of your home insurance costs is to use our online quote tool or talk to an RBC Insurance Advisor about the coverage that’s right for you.

Home insurance covers unexpected property damage and insures your personal belongings, like jewelry, electronics and furniture, up to the limits set by your policy. Besides the home itself, your insurance may cover other permanent structures on your property, like fences, sheds, and garages. Reasonable living expenses are also covered if you can’t live in your home as a result of a covered claim.

Homeowner’s insurance also includes liability coverage, which helps protect you if someone is injured on your property, if you accidentally damage someone else’s property, or if you unintentionally injure someone—no matter where in the world the incident occurred.⁷

Home insurance isn’t mandatory the same way auto insurance is. However, lenders require home insurance before they’ll agree to give you a mortgage, so you’ll need to maintain a policy at least until your home is fully paid for. At that point, opting out of home insurance risks both your home and all the money you put into it, so it’s strongly recommended to keep your home insured. As well, many landlords require their tenants to have tenant insurance.

Your policy should take into account your needs and the specifics of your home and its contents. To determine the coverage that’s right for you, it’s important to assess the risks your home could face and the financial or personal impacts those risks could have. For example, some locations may face a risk of flooding, so if you have a finished basement or store items in your basement, you may want increased water damage protection.

Please speak to an RBC Insurance Advisor to get the right coverage for your situation.

Almost all plans will cover sudden and accidental water damage. You may also be able to add protection for sewer back-up and flooding by natural sources like lakes and rivers. Water damage poses a significant risk to homes. You may be able to save on your premiums if you install a centrally monitored water alarm.³

Please speak to an RBC Insurance Advisor to get the right coverage for your situation.

You could save up to 15% on your home insurance when you insure your home and car through us⁵. It may also be possible to lower your home insurance premiums by installing a centrally monitored water alarm system³ or a centrally monitored security alarm system⁴. Or you can choose a higher deductible, which is the amount you pay out of pocket in the event of a covered claim.

Yes, you can cancel your insurance at any time — cancellation fees may apply.

Your home’s location provides a lot of information on what potential risks it may face. The lower the risks, the lower your insurance premiums. The location tells the insurer whether your home is at risk for things like flooding or fire damage, the odds of break-ins or vandalism in your area, and other things that might result in an insurance claim. Factors like nearby buildings and services can also be considered, like the distance between your home and the nearest fire station.

Newer homes are generally charged lower premiums. As a building ages, parts of it may wear down, leading to higher risks of things like broken pipes or electrical issues

Yes. Generally, homes with electric and natural gas cost less to insure than homes with oil or wood furnaces. Oil has a risk of leaking, which is difficult and expensive to prevent or fix, while wood furnaces may raise the risk of house fires.

Because your condo corporation will have its own policy that covers common areas, your condo insurance will focus on the contents and improvements made to the standard unit. You can insure your unit and possessions against water, theft or fire, to help protect yourself from liability claims, and to receive reasonable living expenses, up to the limits in your policy, if you’re unable to live in your unit because of repairs to the building.

Tenant insurance (sometimes called renter’s insurance) is similar to home insurance, but with some notable differences. Tailored for people who rent or lease their home or apartment from a landlord, tenant insurance premiums are typically much lower than home insurance. Policies cover the contents of your home in case of theft or damage, help provide you with liability protection, and pay for reasonable living expenses, up to the limits in your policy, if you can’t live in your unit as a result of a covered claim.