What does basic home insurance cover in Ontario?
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Home insurance plans offer you security against common perils (risks) found in Ontario. This includes things like fire, theft, vandalism, storm damage, and more. Coverage is divided into two broad categories – property and liability:
Property coverage for your home
The first component of your policy is protection for your property – your structure, and your personal items. All the following are included:
Building
You have protection from threats such as water, fire, and weather events.
It covers your dwelling and attached structures such as your deck, garage, and other permanent fixtures. This includes your landscaping. Coverage amounts are up to the replacement value of your home.
Let’s say lightning struck a tree on your property. A large branch fell and caused damage to your shed, deck, and roof. Insurance will help pay for the repairs.
Detached structures
Your plan also covers detached structures, including your garage, shed, pergola, gazebo, pool house, play equipment, and more. You can receive up to 20% of the replacement cost.
For example, you have a flood in your basement. All your personal belongings in the basement are waterlogged. You will receive compensation to replace these belongings.
Personal contents
Contents insurance covers the things you have in your home, including clothing, furniture, appliances, electronics, and décor. However, there are limitations on what is included in contents insurance. For some items (jewellery, collectibles, etc.), additional coverage will be needed. You can receive up to 80% of the replacement cost.
For example, you have a flood in your basement. All your personal belongings in the basement are waterlogged. You will receive compensation to replace these belongings.
Coverage also extends to when you carry personal items with you outside of the home. For example, if your bike is stolen while you’re at the park or your laptop is stolen while you are on vacation. You are subject to plan limits.
Additional living expenses
Get compensation if you need to move out of your home while it is being repaired after a claim. Additional living expenses provide compensation for hotel, food, rent, storage, and other expenses. Coverage is up to 30% of the replacement cost.
For example, if your house was damaged and deemed unfit to live in. In these situations, you have coverage for additional living expenses, such as the cost of staying at a hotel.
Liability protection for your home in Ontario
Accidents happen. As a homeowner in Ontario, you are personally liable if someone is injured on your property. You are also liable if you, a family member or a pet causes damage to another person's belongings. This is what is included:
Personal liability
You’ll have personal liability coverage to protect you if someone is injured while on your property. It can cover legal fees, settlements, and other costs related to personal liability claims against you. Plans offer up to $5 million in coverage.
For example, a delivery person slips and falls on your steps because they are icy. Your dog bites one of your neighbours.
Voluntary medical payments
Your insurer will cover voluntary medical payments for anyone who is injured while at your place. They have access to this for up to one year from the date of the incident. This can include physiotherapy, minor surgeries, and other medical procedures. Plans offer up to $10,000.
Voluntary property damage
You are protected with voluntary property damage coverage if you or a family member in your household accidentally causes damage to another person’s possessions. For example, your kids play hockey and shoot a puck through your neighbour's window. Your insurer will cover you for up to $6,000.
