What Doesn't Home Insurance Cover?
Does your home insurance cover everything? No, it doesn’t.
While home insurance covers various risks and liabilities, there are some common exclusions that aren’t covered under a standard home insurance policy.
Western Financial Group, a 100% Canadian company, can help you navigate your car, home, business, and boat insurance during this period of economic uncertainty.
If you require additional protection or coverage not included in your standard home insurance policy, feel free to discuss it with us. Western can provide advice on the ideal home insurance package tailored to your needs.
How does home insurance work?
Your home insurance coverage protects you from incidents that are sudden, accidental, such as a fire, theft, or damage from severe weather, and NOT specifically excluded within your policy.
It’s important to read the details of your home insurance policy to understand what is included and what is excluded in your policy to avoid coverage surprises.
Home insurance does not cover all unexpected events. Your home insurance policy does not cover unexpected events like earthquakes, landslides, floods, and sewer backup.
Home insurance exclusions
Floods and earthquakes
Damage caused by natural disasters like floods, earthquakes, or landslides is typically not covered. Separate policies or endorsements may be needed to cover overland flooding and earthquakes. Home insurance policies in Canada do not cover damage from landslides (movement of earth).
Wear and tear
Home insurance generally does not cover damage due to general wear and tear or lack of maintenance. Repairs or replacements due to aging or gradual deterioration are usually excluded from your home insurance policy.
Pest infestations
Damage caused by pests, such as termites, rodents, or insects, is typically not covered under standard home insurance policies.
Sewer backup
Additional insurance is usually required for sewer backup coverage.
Home business or commercial activities
Business-related liabilities or damage to property related to a home-based business aren’t usually covered under a standard homeowner's policy. You’ll need to get business insurance.
High-value items
Coverage limits normally apply to valuable items like jewelry, art, or collectibles. Additional coverage or riders may be necessary for full protection of these items.
Acts of war or terrorism
Damage resulting from war, acts of terrorism, or nuclear events are usually excluded from coverage.
Neglect or intentional damage
Damage resulting from intentional acts or negligence by the homeowner is generally not covered.
Vacant or unoccupied homes
Some policies have restrictions or exclusions for properties that are vacant or unoccupied for extended periods.
Usually insurance companies do not cover predicable events under your home insurance policy and for unexpected events you might need to buy add-ons.
Discussing your needs with any of our insurance experts can help identify areas where additional coverage is needed to safeguard your home.
Should I get any insurance add-ons to protect my house?
To better protect your home, you may want to add:
- Overland water coverage – For protection against surface water flooding
- Sewer backup coverage – Especially important in urban areas with aging infrastructure
- Earthquake insurance – Essential in regions like B.C.
- Service line coverage – Covers underground pipes or wires that connect your home to public utilities
- Home equipment breakdown – Protects major systems like HVAC, electrical panels, or appliances
- Guaranteed replacement cost – Ensures your home can be fully rebuilt even if construction costs rise
Are broken windows covered?
Covered if caused by a listed peril (windstorm, hail, vandalism, theft, or attempted break in, accidental damage by a third party), but not for wear and tear or accidental breakage by the homeowner.
Are detached garages covered?
Yes, detached structures like garages, sheds, or workshops are typically covered under the “detached structures” or “outbuildings” section of your policy (usually 10–20% of your main home’s coverage limit).
If you use your garage for business (e.g., a workshop), you may need additional coverage.
Is concrete work covered? (driveways, walkways, patios)
Only covered if damaged by something sudden and accidental (like a fire or collision), not from cracking or settling overtime.
Not covered:
- Cracks from settling, wear and tear, or poor installation
- Damage from tree roots
- Freezing/thawing (unless explicitly included)
Final thoughts
In Canada, a standard home insurance policy is a great foundation, but it’s not one-size-fits-all. To truly protect your home and belongings, it’s wise to customize your coverage with the right add-ons based on your location, property type, and lifestyle.
5 FAQs About Canadian Home Insurance
Do I need home insurance?
If you have a mortgage, you can expect your lender to require home insurance. If you are mortgage free, you don’t have to get home insurance. That’s a risk you’ll need to decide on.
Is flood coverage included in home insurance?
Flood coverage is generally not included in standard home insurance policies. Standard policies often cover certain types of water damage, like burst pipes. Insurance coverage for water that enters your home from the outside due to heavy rain or an overflowing river requires purchasing a separate endorsement or add-on to your policy, often called "overland water coverage" or "flood insurance," to be protected against flood damage.
Why is it important to know how much it would cost to rebuild your home?
Knowing your home's rebuild cost helps ensure you have enough insurance to rebuild your home if it's damaged or destroyed, avoiding potentially devastating out-of-pocket expenses. This is especially important because building materials and labor costs fluctuate.
Does my home's replacement value affect my home insurance premium?
The cost to repair or rebuild your home changes over time. Inflation, building materials, labor, and the cost of replacing possessions all impact these expenses, which can fluctuate annually. It generally costs more to rebuild or repair a home today than it did five or 10 years ago. The cost to rebuild and repair your home is typically what influences your home insurance cost.
How do I choose between replacement cost and actual cash value policies in my home insurance?
Homeowners should choose a replacement cost policy. While an actual cash value policy may have lower premiums, it often leaves homeowners covering significant costs on their own to replace belongings or rebuild after a loss.
