Back to Basics
Explaining Property Insurance in Ontario
Property insurance in Ontario helps protect you financially if something were to happen to your home, condo, or the property you’re renting. If there were a fire or theft where you live, for example, you would be protected against financial losses by having insurance coverage in place.
While most Ontarians have property insurance, many are not familiar with the key terms used in their policy, how to make a claim, or even what their policy covers. Too often, people only become aware of the terms of their policy when they need to make a claim, and sometimes that is too late.
There are three main types of property insurance:
Homeowner’s Insurance: This covers the house itself, outbuildings, your personal belongings, and liability if someone gets hurt on your property. It may also cover extra living expenses if the house is damaged and uninhabitable due to peril or loss covered by the policy
Condominium Insurance: Designed for condo owners, this covers personal belongings, the unit itself, any improvements made to your unit, and liability if someone gets hurt on your property, or if an incident in your condo affects another condo owner’s unit. It also covers shared areas not covered by the condominium corporation’s insurance.
Tenant Insurance: Also known as Renter’s Insurance, this protects you from liability if someone gets hurt on the property you are renting. It covers your personal belongings (up to the limit of your coverage) that are damaged as a result of a peril covered by the policy. It does not cover the building itself because this is the landlord’s responsibility.
Your insurance policy may include terms like “dwelling,” “detached structures,” “contents,” and “additional living expenses.” This guidebook offers clear explanations of these and other key concepts to help you better understand your coverage and engage in informed conversations with your licensed Insurance Agent or Broker.
Property Insurance
Considered by many to be essential for Ontario homeowners and tenants, property insurance covers unforeseen loss and damage to your residence and your belongings. It also protects you against personal liability. There are several types of property insurance: Homeowner’s Insurance (owner-occupied, owned rental properties and seasonal), Condominium Insurance (owner-occupied, rented out), and Tenant (or Renter’s) Insurance.
What’s typically covered?
In Ontario, standard property insurance typically covers unexpected events like fire, wind, hail, theft, and vandalism, but additional coverage may be required for events like sewer backup and overland or groundwater floods. Here’s a more detailed breakdown of what’s usually covered:
What’s typically not covered?
Property insurance exclusions speak to types of loss that are considered uninsurable due to their scope or because they are expected or deliberate, such as war or liability for criminal acts.
What is considered optional coverage?
Standard property insurance protects you against unforeseen events specified in your policy. However, there are some losses that are not typically covered, which could lead to costly repairs or replacements. If you live in an area prone to a specific kind of event not covered by your policy, you may seek to purchase additional coverage, known as endorsements, to protect yourself. In this way, your policy is tailored to fit your specific needs.
Misconceptions about Property Insurance
Let’s debunk the most common ones.
What Can Impact Your Insurance Rates?
You and Your Policy
Understanding the Impacts of Weather on Your Property
How to ensure you’re protected from weather-related events.
Getting Organized!
Checking your insurance policy and protecting your high-value items is a simple but
powerful first step in getting your home storm-ready
Protecting Your Home
A little preventative maintenance can go a long way in reducing the risk to your home. For some simple ways to make your home resilient, read here.
