Property Insurance for a New Home Canada 20025 | What You Need

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 $1,000000–$3,50000/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

Dwelling: The physical structure of your home against insured perils (fire, lightning, windstorm, hail, explosion, some water damage)
Contents: Your personal belongings inside the home
Liability: If someone is injured on your property and sues you
Additional living expenses: Hotel and living costs if your home is uninhabitable due to an insured loss
Detached structures: Garage, shed (usually 100% of dwelling coverage)

What Standard Home Insurance Does NOT Cover

Overland flooding (from rising rivers, lakes — requires an endorsement)
Sewer backup (requires an endorsement — $500–$20000/year extra)
Earthquake (requires an endorsement — common in BC)
Ground movement, landslide
Mold (unless caused by a sudden covered loss)
Maintenance-related issues (the insurer expects you to maintain the home)

Key Add-Ons Canadian Homeowners Should Consider

Endorsement	Annual Cost	Who Needs It
Sewer backup	$500–$20000	Almost everyone
Overland flooding	$10000–$50000+	Properties near waterways
Earthquake	$20000–$80000	BC (especially Vancouver)
High-value contents	$10000–$50000	Jewellery, art, collectibles
Home business	$10000–$30000	Home office with clients

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How to Get the Best Home Insurance Rate

Bundle with auto insurance: Multi-policy discounts of 100–25% are standard
Increase your deductible: Going from a $50000 to $2,000000 deductible can reduce premiums 15–25%
Alarm and security systems: Central monitoring discounts of 5–15%
Newer home or recent updates: New electrical, plumbing, or roof qualifies for discounts
Claims-free history: Staying claims-free earns loyalty discounts over time
Compare 3–5 quotes: Premiums for identical coverage can vary 400–600% between insurers