Property Insurance for Your New Home in Canada (2025)

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What your lender requires, what you actually need, and how to get the best rate.

Home Insurance Is Mandatory to Get a Mortgage

When you close on a home in Canada, your mortgage lender requires proof of homeowner's insurance effective on the closing date. You must arrange this before closing — your lawyer or lender will ask for the binder (proof of coverage) during the closing process.

Canadian homeowner's insurance typically costs $1,000–$3,500/year, though premiums vary widely based on location, home value, construction type, claims history, and the coverage you select.

Timeline: Start shopping for home insurance at least 2–3 weeks before your closing date. Some insurers need lead time for older homes or those with unconventional features.

What Standard Home Insurance Covers

What Standard Home Insurance Does NOT Cover

Key Add-Ons Canadian Homeowners Should Consider

EndorsementAnnual CostWho Needs It
Sewer backup$500–$200Almost everyone
Overland flooding$100–$500+Properties near waterways
Earthquake$200–$800BC (especially Vancouver)
High-value contents$100–$500Jewellery, art, collectibles
Home business$100–$300Home office with clients

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How to Get the Best Home Insurance Rate

Related: home warranty guide, closing costs overview, total cost of buying a home.