Understanding home insurance can get confusing, quickly! That’s why the VLG Insurance Team has put together this helpful guide to home insurance in Canada covering what it is, where to get it, how it works, and how much it may cost.  


Home Insurance Basics 


What is Home Insurance? 

Home insurance is a financial protection policy that covers damage to your home and personal belongings caused by various events such as fires, storms, theft, and more. It also provides liability coverage in case someone is injured on your property.  

How Does Home Insurance Protect Me? 

The right policy can help protect you from costs related to: 

  • Property Damage (due to aircraft or vehicle impact, fire, lightning) 
  • Damage due to extreme weather 
  • Theft & Vandalism 
  • Personal Liability 


What’s Covered in Home Insurance? 

Typical Home insurance policies protect you when your property suffers major damage, theft, or an incident of liability protecting you from having to incur large out-of-pocket expenses all at once.  Your policy can protect both the brick-and-mortar property itself and the contents within it 


What’s Not Covered in Home Insurance? 

A typical home insurance policy does NOT cover property taxes, condo fees, mortgage payments, or the land.


How Much Insurance Coverage Does a Home Need? 

To find out how much insurance you need to cover your home, simply multiply its size by the cost to rebuild it. Liability insurance has a rule of thumb of 1 million dollars minimum – of course, this is not your deductible but how much your insurer may cover in a liability issue.  


Is Home Insurance Mandatory? 

While there is no legal requirement to have home insurance, it is generally considered essential for homeowners.  If you’re mortgaging your home, mortgage providers typically require borrowers to have home insurance as a condition of the mortgage agreement. This is to protect the lender’s investment in the property and ensure that the property can be rebuilt or repaired in the event of damage or loss. 


How Do I Buy Home Insurance in Canada? 

Purchasing home insurance is the same as auto, life, or farm insurance: start with research. Find a reputable company that will work with you – like the brokerage team at VLG that takes pride in finding the policy that will cover your properties inside and out. 

 PS: Need a quote? We’ve got your back.  


Where Do I Find the Best Home Insurance Rates? 

Working with a brokerage (like the VLG Insurance Group) is one of the easiest ways to find insurance. It’s our job to save you money by finding the best policy at the best rate available to you. Not only that, but we also have access to a large selection of top insurance partners in the country, many of whom only offer coverage through brokerages. 


How Do I Save on Home Insurance Costs? 

Saving on home insurance costs may seem daunting, but these tips can help: 

  • Research: Find reputable insurers with positive reviews 
  • Increase your Deductible: Doing so can lead to lower premiums 
  • Improve Security: Improving home security measures can help reduce premiums 
  • Work with a broker: We’re experts! We offer free advice and want you to take advantage of our years of acquired knowledge, it’s what we love to do! 


Home Insurance Coverage Facts: 

  • Water damage is the most common claim for property insurance. Current claims statistics put water damage at roughly 44%, with fire claims sitting just behind at 30% of total claim dollars spent. 
  • Depending on your region there may be additional things to consider when selecting your coverage, key items such as severe weather conditions and history of incidents in your area may affect your premium. 


Looking for more information? Contact our team! Finding you the best rates possible is what we’re here for!