How Does Home Insurance Work In Ontario?
Your home insurance is like a security blanket. And it is more important than ever with significant weather events are on the rise. In the last decade alone, more than a billion dollars of damage has occurred to Ontario homes alone.
The good thing is getting Ontario home insurance has never been easier. How it works is simple. Its just like any other insurance product. You purchase a policy in exchange for financial protection against unforeseen events (fire, water damage, theft, vandalism).
You have protection for your dwelling, property, and belongings if they are damaged or you suffer a loss. If you choose to file a claim, you are responsible for paying the deductible.
Your home insurer will provide you with the funds to repair and replace the damaged and lost belongings, up to your plan limits.
Even though its not mandatory, you will require it to qualify for a mortgage. Better yet, having it will help you sleep much better at night knowing your family and property is protected.
Below is more information about what is and is not covered and how its regulated.
What Does Home Insurance Cover In Ontario?
Your home insurance covers perils such as fire, theft, vandalism, storms and more. It provides protection for :
- Building & Detached Structures
- Personal Contents
- Additional Living Expenses
- Legal Liability
What Is Not Covered By Home Insurance In Ontario?
Homeowners should be aware of things that are not covered including :
- Business activity : You will require home-based business insurance for any business operations.
- Criminal activities : Purposeful damage caused such as fraudulent activities.
- Recreational vehicles : Ownership and use of watercrafts and recreational vehicles.
- Flooding : Flood damage requires extra protection.
- Mold : Mold that develops because of poor maintenance is not covered. Mold as a result of an included peril is covered in most cases.
- Earthquakes and landslides : Some insurers offer this as an add-on.
- Failure to maintain : Normal wear and tear of your property is not covered.
- Frozen pipes : Damage as a result of frozen pipes.
- Insect damage : This is preventable. It is not covered under most policies.
- Home sharing : Airbnb and other home sharing requires additional insurance.
- Vacant dwellings : Your insurance may be void if you leave your residence vacant for an extended period of time.
Who Regulates Home Insurance In Ontario?
The Financial Services Regulatory Authority of Ontario (FSRA) regulates property and casualty insurance. They oversee the insurance industry and regulate rates. Consumers and industry professionals use the FSRA for guidance, support and to get accurate information about insurance legislation and rules.
Is Home Insurance Mandatory In Ontario?
Home insurance is not legally required in Ontario. However, you will have to show proof of insurance to secure a mortgage. Plus, you will have peace of mind knowing you are insured properly.