How to Choose Home Insurance in Canada in 2025
With the steady rise in home insurance premiums across Canada, choosing the right policy has never been more important. According to Canadian Underwriter, average rates increased by 5.28% nationally between January 2024 and January 2025, with an average increase of 2.18% in Quebec. This trend highlights the importance of making strategic insurance decisions.
In this guide, we explain how to:
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Understand the different types of home insurance coverage available in Canada
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Assess your needs in terms of property, personal belongings, and liability coverage
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Compare policies beyond just price, including deductibles, endorsements, and claims handling
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Customize your coverage limits based on your lifestyle and risk tolerance
This guide will help you make informed decisions when choosing the right home insurance.
How to Choose the Right Home Insurance
Choosing the right home insurance begins with a clear understanding of your needs: the type of property you own, its value, your location, and the level of liability protection you require. Compare not only the premiums but also the coverage limits, exclusions, claims-handling reputation, and available endorsements.
At OVC Assurance, we simplify the process by offering personalized quotes from more than 20 insurers. As independent brokers, we work exclusively for you. We provide objective advice, personalized support in selecting the right coverage, and reliable assistance in the event of a claim.
Protect your home with the right coverage at the right price, backed by dependable guidance and exceptional service.
Protect Your Home With the Right Coverage
The Different Types of Home Insurance Coverage
Whether you’re insuring a house, condo, or rental unit, understanding what each type of policy covers can make a major difference if a loss occurs.
Basic, Broad, and Comprehensive Coverage
Most home insurance policies in Canada fall into one of three categories:
Basic Coverage (Named Perils)
This type of insurance covers your home’s structure and personal belongings only against the risks specifically listed—such as fire, theft, or wind damage. It usually excludes water damage or earthquakes unless added as optional coverage. This is the most affordable option, but also the most limited.
Broad Coverage
This mid-level policy provides all-risk coverage on the building (except exclusions) and named-perils coverage on contents. It offers a solid balance between protection and affordability.
Comprehensive Coverage (All Risk)
Often called a full home insurance policy, it covers your home and belongings against all risks except those explicitly excluded (such as flooding, earthquakes, or sewer backup unless optional coverage is purchased). This is the most complete option, ideal for those seeking peace of mind and robust protection.
Optional Endorsements and Additional Coverage
Even the most comprehensive policy doesn’t automatically cover every scenario. Endorsements (optional add-ons) help fill those gaps. Common endorsements include:
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Sewer backup coverage: Essential in areas with aging municipal infrastructure.
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Earthquake insurance: Useful in regions with higher seismic activity.
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Flood insurance: Covers overland flooding—important if you live near water or in a flood-prone zone.
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Guaranteed replacement cost: Ensures your home can be rebuilt to current construction standards, regardless of depreciation or rising material/labour costs.
These add-ons may increase your premium, but they provide essential protection for your investment. At OVC Assurance, we help homeowners compare add-ons from trusted insurers.
Whether you need basic coverage or a full policy with customized endorsements, our independent brokers help you find the right protection for your property, lifestyle, and budget.
Compare Home Insurance Policies With OVC Assurance
How to Evaluate Your Home Insurance Needs in Canada
Choosing home insurance isn’t just about comparing quotes. It’s crucial to realistically assess your specific coverage needs.
Home Type and Structure
The type of property you live in—condo, rental unit, or detached home—determines the insurance you require. For example:
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Condo insurance covers the interior of your unit, improvements, and personal belongings, but not the building structure (which is covered by the condo corporation’s policy).
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Tenant insurance is essential for renters, as it protects personal belongings and liability.
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Homeowners must insure the main structure as well as detached buildings such as garages, sheds, or outbuildings.
Other factors like roofing materials, alarm systems, and proximity to fire hydrants or fire stations can influence your quote and premium.
Personal Property Value and High-Value Items
Assess the market value and replacement cost of your personal belongings. Create a detailed home inventory including furniture, electronics, and valuables. High-value items like jewelry, art, or collections may exceed standard policy limits.
In these cases, you may need additional endorsements to ensure full reimbursement in the event of fire, theft, smoke damage, or hail. Some policies reimburse based on actual cash value (considering depreciation) unless you have replacement cost coverage or a specific scheduled endorsement.
Liability Coverage and Additional Risks
Liability coverage protects you if someone is injured on your property or if you unintentionally cause damage to someone else’s property. It’s essential for homeowners, renters, people working from home, or those who rent out part of their property.
If you live in an area exposed to flooding or other natural hazards, additional coverage (such as overland water, wind, hail, or even a personal umbrella policy) may be advisable.
Your claims history also affects your premium. A clean record can qualify you for lower rates or claims forgiveness with some insurers.
How Much Does Home Insurance Cost in Quebec?
How to Personalize Your Home Insurance Policy
Every home is unique, and your policy should reflect that. Personalizing your insurance lets you adjust coverage limits, choose relevant endorsements, and modify your deductible according to your risk tolerance, lifestyle, and budget.
Adjusting Coverage Limits and Adding Endorsements
Standard policies include basic coverage for the building and personal belongings, but default limits may not match your actual needs—especially if you own high-end materials, custom carpentry, or expensive electronics.
Choosing the Right Deductible
Your deductible impacts your premium.
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A higher deductible reduces premiums but increases out-of-pocket expenses during a claim.
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A lower deductible increases premiums but lowers the cost during a loss.
Choose a deductible you can comfortably manage, especially if required by your mortgage lender.
Optional Safety Features
Installing alarm systems, water shut-off devices, or home monitoring systems can reduce risks and may qualify you for discounts while enhancing your protection.
Speak With an Insurance Broker
Compare More Than Just the Price: What to Look For Beyond Premiums
Many people choose the cheapest policy, but price doesn’t reflect true value—especially when filing a claim.
Pay attention to:
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Limits for high-value items
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How depreciation and reimbursement are calculated
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Claims processes and payout timelines
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Legal assistance clauses
The Real Impact of Deductibles
Deductibles determine how much you pay out of pocket. Balance affordability with protection—some insurers offer hybrid structures for more flexibility.
Hidden Discounts That Make a Difference
Ask about:
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Bundling home and auto insurance
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Alarm or water detection systems
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Loyalty or multi-policy discounts
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Claims-free discounts
Don’t Forget to Review Your Policy Regularly
Life changes—your insurance should too. Review your policy annually or after renovations, new high-value purchases, or major changes at home.
Get Personalized Quotes From Trusted Insurers
Why Choose OVC Assurance?
At OVC Assurance, we don’t just compare prices. As a fully independent brokerage, we work with over 20 reputable insurers to find the right policy that fits your budget and risk profile.
Our team ensures you receive all available discounts and keeps your coverage aligned with your situation. We support you through every step—from quote to claim—with fast, caring, and human service.