How much is home insurance in Canada?

The average home insurance premium in Canada is $1,200–$1,800 per year, but it varies widely by province, home value, location, and coverage type. Alberta and BC tend to be higher (weather-related claims), while Quebec and the Maritimes tend to be lower. Get multiple quotes to find the best rate.

What does home insurance cover in Canada?

Standard home insurance covers fire, theft, wind/hail damage, water damage (limited), liability, and additional living expenses if your home is uninhabitable. It typically does NOT cover flood, earthquake, sewer backup, or normal wear and tear — these require separate endorsements.

Is home insurance mandatory in Canada?

Home insurance is not legally required, but your mortgage lender will require it as a condition of your mortgage. Without a mortgage, it's technically optional but strongly recommended to protect your largest asset.

Home Insurance Guide for Canadians (2026)

Home insurance protects your largest asset from fire, theft, weather damage, and liability claims. While not legally mandatory, your mortgage lender requires it — and you’d want it regardless.

Quick answer: Average home insurance in Canada costs $1,200–$1,800/year. It covers fire, theft, wind/hail, and liability. Not covered by default: flooding, earthquakes, sewer backup (add these as endorsements). Bundle with auto insurance to save 10–20%.

Average Home Insurance Cost by Province

Province	Average Annual Premium	Key Risk Factors
Alberta	$2,000–$2,500	Hail, flooding, wildfires
British Columbia	$1,500–$2,200	Earthquakes, flooding, wildfires
Ontario	$1,400–$1,800	Wind, water damage, theft
Saskatchewan	$1,200–$1,600	Hail, wind
Manitoba	$1,200–$1,500	Flooding, wind
Quebec	$1,000–$1,400	Wind, ice storms
New Brunswick	$900–$1,200	Storms, flooding
Nova Scotia	$900–$1,200	Hurricanes, wind
Prince Edward Island	$800–$1,100	Storms
Newfoundland	$900–$1,300	Storms, wind

What Home Insurance Covers (and Doesn’t)

Covered (Standard)	NOT Covered (Need Endorsement)
Fire and smoke damage	Overland flooding
Theft and vandalism	Earthquake
Wind and hail damage	Sewer/drain backup
Lightning	Normal wear and tear
Falling objects	Pests and infestations
Liability (someone hurt on your property)	Home business equipment (usually)
Additional living expenses	Vacant property (30+ days)
Personal property (worldwide)	Certain dog breeds

Types of Home Insurance Policies

Type	What It Covers	Best For
Comprehensive	All perils (except exclusions)	Most homeowners
Broad	Named perils on contents, all perils on building	Budget-conscious
Basic (Named Perils)	Only specifically listed perils	Cheapest option
Condo insurance	Unit interior, contents, improvements	Condo owners
Tenant insurance	Personal property, liability	Renters

Factors That Affect Your Premium

Factor	Impact on Premium
Home value / rebuild cost	Higher value = higher premium
Location (province, city)	High-risk areas cost more
Age of home	Older homes cost more
Heating type	Oil heat costs more than gas/electric
Roof age and material	Old roof = higher premium
Distance to fire station	Closer = cheaper
Claims history	Previous claims = higher rate
Deductible amount	Higher deductible = lower premium
Security system	5–10% discount
Bundling with auto	10–20% discount
Credit score (some provinces)	Better credit = lower rate

How to Save on Home Insurance

Strategy	Potential Savings
Compare 3–5 quotes	$200–$600/year
Bundle home + auto	10–20%
Raise deductible to $2,000+	10–15%
Install security system / smart home devices	5–10%
Update electrical, plumbing, roof	5–15%
Claims-free discount (3+ years)	5–10%
Install sump pump / backflow valve	5–10%
Pay annually (not monthly)	3–5%

Endorsements to Consider

Endorsement	Cost	Who Needs It
Overland flood	$100–$500/year	Anyone near water or in a flood zone
Sewer/drain backup	$50–$200/year	Everyone (highly recommended)
Earthquake	$200–$1,000/year	BC residents especially
Home business	$50–$200/year	Home-based business owners
Identity theft	$25–$50/year	Optional
Jewelry/valuables rider	Varies	If you own valuable items above policy limits

Bottom Line

Home insurance is essential for protecting your biggest asset. Get comprehensive coverage (not just basic) and add sewer backup coverage — it’s the most common claim Canadians make. Bundle with auto insurance and compare multiple quotes to get the best rate. Review your policy annually as home values and rebuild costs change.

For related guides, see tenant insurance, car insurance by province, and life insurance.

Written by WealthVieu

WealthVieu researches and writes data-driven personal finance guides using primary sources including the IRS, Bureau of Labor Statistics, Federal Reserve, and Census Bureau.

The content on Wealthvieu is for informational purposes only and should not be considered financial, tax, or investment advice. Consult a qualified professional before making financial decisions. Full disclaimer · Editorial policy