Home Owners Insurance Canada Policy Types

Compare Home Insurance Policies

Home owners insurance in Canada comes in many different policy types. But they can be broken down into four categories. Keep in mind that many insurers use their own brand names for policies.

Comprehensive Home Owners Insurance This type of home insurance is also known as “All Risk” coverage. This means that all risks are covered, except for those that are specifically excluded. This coverage usually applies to the building and contents. But check your policy to be sure. The most common exclusions are flooding and earthquake.

Overall this is the best home owner insurance. Read more on Comprehensive Homeowners Policy Canada here

Named Perils Policy Also known as a basic policy, coverage is only on perils named in the policy such as fire, lightning, theft, and the like. This makes the policy more affordable but puts more risk on the insured home owner. See below for common named perils.

Limits for contents are also lower in this type of policy.

Broad Form Home Insurance This is a hybrid between Comprehensive and Named Perils coverage. This policy gives comprehensive coverage on the dwelling building but named perils coverage on the contents.

Basic Home Owners Policy Some insurers offer very basic or “No Frills” coverage. These policies are very limited in their coverage. They may only be offered if the dwelling to be insured does not meet the minimum standards of the insurer. Often there is a physical problem that needs to be addressed as it increased the risk of a claim. The premium may not be lower than a regular policy so it is wise to fix the problem as quickly as possible.

Common Insurable Named Perils (broad contents, named perils)*
Air and vehicle impact
Electrical current
Escape of fuel oil
Explosion
Falling object
Fire
Lightning
Riot or civil disturbance
Smoke
Theft
Transportation
Vandalism
Water Damage (read the limitations here!)
Wind and Hail

*this may vary from policy to policy

Remember, not all companies have the same home insurance options. And many use brand names with variations of coverage. So check your policy carefully.

Read about the main parts of a Canada Home Owner Insurance Policy

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Other types of home policies

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