Home insurance primarily covers your dwelling, its contents, and your personal liability. The vast majority of Canadian homeowners opt for a comprehensive insurance policy—which offers all risk protection on your home and personal property.
Canadian insurers offer seven standard sections (A – G) of home insurance coverage. The table below lists coverage ranges from the majority of insurance companies in Canada for each of these sections. The major differences in coverage between types of home insurance policies comes down to the perils you are protected from. But before we get to what you’re covered against, here’s what’s covered:
|Coverage||Coverage Amounta||Example Home|
|1. Property Coverages|
|A) Dwelling Buildingb The foundation, walls, flooring, windows, doors, and roof of your home. Learn more||Replacement Cost: A dollar amount equal to the cost to rebuild your home||Insured for $750 000 which is equal to $250 per square foot rebuild cost|
|B) Other Buildingsb Structures on your property that aren’t part of the main home, such as the tools shed, detached garage, or pool house. Learn more||10% – 20% of Coverage A Replacement Cost||$75,000-$150,000|
|C) Contents Your personal belongings inside your home, such as jewelry, artwork, electronics, furniture, etc. Learn more||70% – 80% of Coverage A Replacement Cost||$525,000 – $600,000|
|D) Additional Living Expenses To handle the costs of additional living expenses for time away from your home due to an insured loss. Learn more||20% – 30% of Coverage A Replacement Cost||$150,000 – $225,000|
|2. Liability Coverages|
|E) Personal Liability Covers injuries or property damage to any third party while they’re on your property. Learn more||$1,000,000 – $5,000,000|
|F) Voluntary Medical Payments Covers the costs should you hurt someone and want to volunteer this medical payment. Learn more||$1,000 – $10,000|
|G) Voluntary Property Damage Can be used to cover the physical damage you cause anywhere in the world. Learn more||$500 – $6,000|
|Fire Department Service Charges Reimburses fees charged by the fire dept. after visiting your home for an insured peril. Usually no deductible.||$1,000 – No limit|
|Counterfeit Cheques Forgery or alteration of a cheque or other document guaranteeing payment.||$5,000 – $10,000|
|Counterfeit Money If you accidentally accept counterfeit paper money. Typically no deductible.||$1,000 – $10,000|
|Credit Cards Losses caused by theft or unauthorized use of credit/automated teller/cash cards or numbers issued to you. Typically no deductible.||$1,000 – $25,000|
|Freezer Foods Spoilage of frozen foods caused by accidental interruption or mechanical breakdown of your freezer.||$2,000 – No limit|
|Lock Repair & Replacement Replacement or re-keying of the locks on your dwelling if your keys are stolen. Usually no deductible.||$500 – $1,000|
|Mass Evacuation Increased living expenses due to ordered evacuation from your premises.||14 – 30 days,|
$2,500 – $10,000
|Reward For Information Payment for information that leads to a conviction for arson/theft in connection with insured property loss/damage.||$500 – $5,000|
a The range of coverage amounts offered amongst our 40+ insurance partners
b Homeowners only
In the unlikely event that you don’t qualify for comprehensive home insurance, e.g., 200+ year old home; 80+ year old electrical wiring; or numerous claims, you’ll still be eligible for broad form coverage, limiting you to named perils on your personal belongings.
The perils that home insurance protects you from will depend on the type of policy you have. Most Canadian homeowners opt for a comprehensive insurance policy, because it protects you from all risks on contents (your personal property) as well as the building.
|Fire and Extended Coverages||Broad Form Coverage||Comprehensive Coverage|
|Dwelling Building||Named perils only||All perils||All perils|
|Additional Buildings||Named perils only||All perils||All perils|
|Contents||Named perils only||Named perils only||All perils|
|Additional Living Expenses||All perils||All perils||All perils|
|Personal Liability||All perils||All perils||All perils|
|Voluntary Medical Payments||All perils||All perils||All perils|
|Voluntary Property Damage Payments||All perils||All perils||All perils|
Some risks are considered uninsurable, and they often involve damage considered to be preventable with proper home maintenance. These uninsurable risks, or exclusions are generally not covered by any policy. Examples include:
Endorsements are available to extend your home insurance coverage to include certain exclusions or situations not covered by a standard home insurance policy. The most frequently chosen endorsements include:
For more details or a quick, personalized quote on your home insurance, contact one of our brokers. Mitchell & Whale Insurance Brokers have been helping homeowners find – and understand – the best home insurance policies since 1948. We’ll be happy to find you the coverage you need at the best rate in Ontario.
Call us today at 1.800.731.2228 to speak with one of our brokers!