Is Your New Home Protected? Home Insurance for Newcomers to Canada
You’re in Canada to start a new life and you’re buying a home. You’ll need to protect your new house with home insurance.
Here’s your guide to buying home insurance in Canada to protect your investment. Western Financial Group will answer your top questions about getting homeowner’s insurance as a newcomer to Canada.
Western Financial Group, a 100% Canadian company, can help you navigate your home, car, condo, tenant, and travel insurance as a newcomer to Canada.
Your guide to home insurance as a newcomer to Canada
Do I need insurance if I am buying a home in Canada?
You’ll need to protect your investment in your new home in Canada, but legally house insurance isn’t required. That said, if your new home is financed by a bank or other lending institution, you can expect that homeowner’s insurance will be a condition of the loan for your new Canadian house.
What if I don’t have a mortgage? Do I need homeowner’s insurance?
Even if you have no mortgage, going without home insurance could leave you financially at risk if your house catches fire, suffers damage from severe weather, or is vandalized, for example. You would be responsible for covering those costs on your own if you choose to go without home insurance. Are you comfortable with that kind of risk?
As a newcomer, homeowner’s insurance financially protects your investment in your new Canadian home.
Did you know? You can bundle your car and home insurance with Western Financial Group and save. See how much you can save with a quote today!
How much is home insurance on average in Canada?
Home insurance premiums in Canada typically range from $1,000 to $2,500 annually, depending on factors such as coverage, deductibles, insurance provider, and home characteristics, and location. Note that your homeowner’s insurance could be higher, depending on the type of house you buy and your location.
What newcomers need to know about buying home insurance in Canada?
What does home insurance cover in Canada?
A typical home insurance policy includes these key protections:
- Dwelling coverage: This protects the physical structure of your home, including the roof, walls, foundation, and attached structures like garages.
- Personal belongings: Your furniture, clothing, electronics, and other possessions are protected from events like fire, theft, and vandalism. Some policies also cover belongings when they’re temporarily outside your home, like on vacation or if they are left in your car.
- Liability protection: If someone is injured on your property or if you accidentally cause damage to someone else’s property, your insurance helps cover medical bills, legal fees, and settlement costs.
- Additional living expenses: If a covered claim forces you out of your home temporarily, insurance will help pay for a place to stay and related costs.
- Detached structures: Sheds, fences, and detached garages are typically covered up to a certain limit.
- Optional coverages: You can also add coverage for events not included in standard policies, such as overland water (flooding), sewer backup, and earthquakes.
- You can customize your home insurance to suit your needs and budget.
Ask your Western Financial Group home insurance expert to help get the right home insurance as a newcomer to Canada. Remember that you can bundle and save on your car and home insurance.
How to buy home insurance as a newcomer to Canada
Determine your home insurance needs: What amount of coverage do you need for your home and belongings. Consider optional coverages like flood or earthquake coverage, depending on where you will live.
Get quotes: Get multiple price quotes and compare how much it will cost to insurance your new home. You can also use online comparison tools to view and compare multiple insurance quotes.
Western’s quote advantage: Western is a national insurance brokerage and we work with Canada’s leading insurance companies to get you multiple insurance quotes for your home insurance policy. You pick the home insurance quote that meets your needs at the right value for you as a newcomer.
What about a soft credit check: A soft credit check looks at the information in your credit report and, most importantly, does not impact your credit score. Your Western Financial Group insurance broker will request your informed consent prior to checking your credit report.
In many cases, a soft credit check will allow Western insurance broker to give you the best price for your home insurance.
Choose your policy: Once you select a policy, then you apply for coverage. You'll need to provide information about the property and yourself as a newcomer. It’s important to provide accurate information on the application form so that the insurer can calculate an accurate price for you. Lying on a home insurance application will void the policy and you will have no coverage.
Read your home insurance policy: Understand what is covered and what isn’t covered. Review your deductibles and policy limits.
Review your policy: Report any significant changes to your home, such as an addition, renovations, or adding a pool, during the policy period to keep your coverage accurate.
Bundle your insurance: You can bundle your home and car insurance to save money. Ask your Western Financial Group home insurance expert about bundling to save.
Did you know? Choosing a higher deductible on your home insurance policy can lower your monthly or annual premium.
What are the main home insurance terms that a newcomer needs to know?
Deductible
The deductible is the amount you will pay on your own before your insurance coverage applies in the event of a claim. When you opt for a higher deductible, an insurer typically sees you as less likely to make small claims, which reduces their risk. In return, they typically offer a lower premium.
Premium
The amount you pay for home insurance, usually annually or monthly, for coverage.
Coverage
The maximum amount your insurer will pay for an insured loss or event, such as a fire or vandalism. There are different types and levels of coverage for your home insurance policy.
Policyholder
That’s you as the homeowner.
Policy limit
The maximum amount your insurance will pay for a specific type of loss. For example, if the dwelling limit is $500,000, that is the most you’ll receive for rebuilding your home after a covered loss.
Replacement cost
The amount it would cost to repair or replace your home or belongings with new items of similar kind and quality, without taking depreciation into account. Replacement cost is recommended for your home insurance.
Actual cash value
The depreciated value of your damaged or ruined items at the time of loss, such as a fire. This means you get the replacement cost minus wear and tear.
Peril
A specific risk or cause of loss, such as fire, theft, windstorm, or water damage. Some home insurance policies offer all risk-comprehensive coverage (all perils except those specifically excluded), while others cover only named perils.
Personal liability
Personal liability coverage is part of your home insurance policy and it is coverage that protects you if someone is injured at your home or on your property or if their personal property is damaged at your home/property. It helps pay legal costs if you’re sued.
Endorsement/riders
Endorsements or riders are add-ons to your basic policy that provide extra coverage or modifies your existing coverage, such as insuring high-value jewelry or adding sewer backup protection.
Exclusions
Specific events, circumstances, or property that are not covered by your policy. For example, typical exclusions are wear and tear, mould, tidal waves and tsunamis, acts of war, and landslides.
What else do newcomers to Canada need to know about home insurance?
Rebuild value versus market value
Insure your home for the cost to rebuild it, not for its market value. Insuring only for market value may not be enough to rebuild after a total loss, such as a fire.
What are common mistakes to avoid when selecting home insurance as a newcomer?
- Too focused on lowest price at the expense of coverage
- Not understanding deductibles and coverage limits
- Not comparing multiple home insurance quotes
- Settling for the first quote
- Overlooking policy exclusions
- Not reading your home insurance policy
- Underinsuring your home to save money
- Insuring your home for its real estate value rather than the cost to rebuild it
- Not updating your home insurance policy when your situation has changed
- Underestimating /overestimating the value of your personal belongings
- Not bundling your home and car insurance
- Not asking for discounts on home insurance where applicable
- Not asking questions about your home insurance policy
Avoiding these mistakes will help you get the right home insurance coverage.
Advantages of buying home insurance with Western Financial Group as a newcomer to Canada
- Western is a national insurance broker partnering with Canada’s leading insurance companies to get you home insurance to help save you money.
- Western will get you multiple home insurance quotes for you to choose from to meet your coverage needs.
- Western can help you customize your home insurance.
- Western will help you bundle your home and car insurance to save.
- Western puts you, the customer, first.
- Western has been in the insurance business for over 100 years!
- We are 100% Canadian and we know the Canadian market.
How to reach us
You can reach a Western home insurance expert by phone, text, or email. Fill out our form and get a quote for your home insurance needs (and all your insurance needs) as a newcomer to Canada.
Speak to one of our insurance experts now: 1-866-860-1958.
To sum it all up
You’re starting a new chapter of your life in Canada as a homeowner. You need to protect your investment with home insurance that’s tailored to your new home and at the right value for you.
5 FAQs
Is home or tenant insurance mandatory for newcomers to Canada?
You can expect your mortgage lender to request home insurance for your new home in Canada. Tenant insurance is not mandatory by law, but many landlords or property owners require proof of tenant insurance before they will rent to you. Homeowner’s insurance and tenant insurance isn’t legally required in Canada, but it’s strongly recommended for personal and financial protection. Western Financial Group can help you save on your home insurance.
What happens if I don’t have home insurance as a newcomer on a Canada?
If you own your home without a mortgage but choose not to get home insurance in Canada, you will take on 100% of the financial risk if something happens, such as a fire or damage to your home from severe weather. If you still have a mortgage and your insurance lapses, your lender could put a more expensive policy in place and charge you for it.
Are there specific home insurance discounts available for newcomers in Canada?
Newcomers to Canada have access to home insurance discounts available to Canadian citizens and permanent residents, such as bundling discounts, home security system discount, lump sum policy payment, among others. Ask your Western Financial Group home insurance expert about discounts.
What's a home insurance quote?
A home insurance quote is an estimate provided by an insurance company or insurance broker that shows how much it would cost you to purchase a home insurance policy based on specific information about your home and coverage needs. The quote reflects the annual premium for the insurance coverage being offered. Western Financial Group is an insurance broker and can get you multiple quotes for home insurance to allow you to compare prices.
What if a visitor gets injured at my house? Does home insurance cover that?
Yes, if a visitor gets injured at your house, your home insurance typically provides personal liability coverage for these incidents. This coverage can help pay for the injured person's medical expenses, legal fees if you are sued, and other related costs, up to your policy limits.
