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Top 5 Home Insurance Policies in Canada for New Buyers

Buying your first home in Canada is an exciting milestone—but it also comes with big responsibilities. One of the most important steps you’ll take as a homeowner is purchasing home insurance.

Home insurance not only protects your property against damage or loss, but it also safeguards your finances if unexpected events occur. For new buyers, the right policy ensures peace of mind from day one.

In this guide, we’ll explore the top 5 home insurance policies in Canada for first-time homeowners, explain what makes them stand out, and share tips for choosing the best coverage for your needs.

Why Home Insurance Is Essential for New Buyers

In Canada, mortgage lenders almost always require homeowners to carry insurance. But beyond being a requirement, home insurance protects you against major risks like:

  • Fire, theft, and vandalism.

  • Natural disasters (wind, hail, some types of flooding).

  • Liability claims if someone gets injured on your property.

  • Additional living expenses if you’re forced out of your home during repairs.

For first-time buyers, these protections are crucial since unexpected costs can quickly derail your finances.

What to Look for in a Home Insurance Policy

Before diving into the top providers, here are the key features new homeowners should consider:

  • Coverage limits – Does it cover the full replacement value of your home and belongings?

  • Deductibles – How much will you pay out-of-pocket before insurance kicks in?

  • Exclusions – Many policies don’t automatically cover flooding or earthquakes.

  • Discounts – Bundling with auto insurance or installing security systems can reduce costs.

  • Customer service and claims process – Fast, reliable claims handling is essential.

Top 5 Home Insurance Policies in Canada for New Buyers

1. TD Insurance Home Coverage

Why it’s great for new buyers:
TD Insurance is one of Canada’s largest providers, offering customizable coverage and attractive discounts for first-time homeowners.

Highlights:

  • Flexible policies tailored for condos, townhouses, or detached homes.

  • Multi-policy discounts if bundled with auto insurance.

  • Optional add-ons like identity theft protection and water damage coverage.

  • 24/7 claims service with an easy online platform.

Best for: First-time buyers who want a trusted name with affordable bundles.

2. Aviva Home Insurance

Why it’s great for new buyers:
Aviva is known for its comprehensive coverage options and specialized add-ons, making it a solid choice for homeowners looking for robust protection.

Highlights:

  • Water protection coverage (for overland water, sewer backup, and flooding).

  • Optional earthquake insurance for high-risk regions like British Columbia.

  • Replacement cost coverage for both home and contents.

  • Discounts for security systems and claim-free history.

Best for: Buyers who live in areas prone to water or earthquake damage.

3. Intact Insurance

Why it’s great for new buyers:
As one of Canada’s largest property insurers, Intact offers policies that are highly flexible and can be tailored to specific needs.

Highlights:

  • Guaranteed replacement cost for your home.

  • All-risk coverage (broad protection against most causes of loss).

  • Add-ons like home-based business coverage.

  • Intact Insurance App for claims tracking and support.

Best for: New buyers who value digital tools and strong all-risk protection.

4. Co-operators Home Insurance

Why it’s great for new buyers:
Co-operators is a Canadian-owned insurer with a strong reputation for customer service and community focus.

Highlights:

  • Comprehensive coverage with customizable options.

  • Enhanced water protection and identity fraud coverage.

  • Additional living expense coverage for displaced homeowners.

  • Personalized advice through local agents.

Best for: Buyers who want personal, hands-on support and a community-focused provider.

5. Economical Insurance

Why it’s great for new buyers:
Economical Insurance has been around for over 150 years and is known for offering affordable rates with solid coverage.

Highlights:

  • Standard protection for fire, theft, and personal liability.

  • Optional coverage for water damage and service line issues.

  • Discounts for claim-free history, newer homes, and bundling.

  • Strong reputation for affordability.

Best for: Budget-conscious buyers seeking essential coverage at a lower cost.

Tips for First-Time Homebuyers Choosing Insurance

  • Bundle your policies – Combining home and auto insurance can save up to 20%.

  • Increase your deductible – Higher deductibles mean lower monthly premiums.

  • Ask about discounts – Alarm systems, smoke detectors, and being claim-free help reduce costs.

  • Shop around – Compare multiple quotes before committing.

  • Review coverage annually – As your home value or lifestyle changes, adjust your policy.

Average Cost of Home Insurance in Canada (2025)

The cost varies by province, property type, and coverage, but here’s a general estimate:

  • Ontario: $1,250–$1,600 per year.

  • British Columbia: $1,000–$1,400 per year (higher with earthquake coverage).

  • Alberta: $1,400–$1,800 per year (due to weather risks).

  • Quebec: $900–$1,200 per year (typically lower than other provinces).

New buyers can expect to pay slightly more initially until they build a claim-free history.

FAQs About Home Insurance in Canada

1. Is home insurance mandatory in Canada?
It’s not legally required, but mortgage lenders typically make it mandatory before approving your loan.

2. Can I switch providers after buying my first policy?
Yes. You can change insurers anytime, but make sure there’s no coverage gap.

3. Do home insurance policies cover flooding?
Not always. Many require add-ons for sewer backup or overland water damage.

4. How much coverage do I really need?
Enough to rebuild your home and replace your belongings. A professional appraisal helps determine the right amount.

5. Is condo insurance different from home insurance?
Yes. Condo insurance typically covers your unit’s interior and personal belongings, while the condo corporation insures the building structure.

Final Thoughts

For new homebuyers in Canada, finding the right insurance policy is just as important as finding the right house. The providers listed—TD, Aviva, Intact, Co-operators, and Economical—are among the most reliable options, each with unique strengths tailored to different needs.

By shopping around, comparing coverage, and buying early, you’ll not only protect your biggest investment but also gain the peace of mind every homeowner deserves.

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