What Does Homeowners Insurance Cover in Ontario?
Home Insurance
Published by BrokerUnion Insurance Editorial Team | RIBO-Licensed Ontario Insurance Broker | November 2, 2026
Reviewed by Muqit Aziz, Principal Broker
What does homeowners insurance cover?
| Coverage | What it protects | Example | Important limitation |
|---|---|---|---|
| Dwelling | The house and its building components | Fire damages walls and the roof | Capped by your dwelling limit; insure for rebuild cost |
| Attached structures | Attached garage, deck, porch | A windstorm damages an attached deck | Definitions vary by policy |
| Personal belongings | Furniture, clothing, electronics | Belongings stolen in a break-in | Special limits for jewellery, cash and some items |
| Personal liability | Claims by others for injury or property damage | A visitor slips on your steps | Up to the liability limit; exclusions apply |
| Additional living expenses | Increased living costs after a covered loss | Hotel and meals while repairs are done | Only after a covered loss; limits apply |
| Other structures | Detached garage, shed, fence | A tree falls on a detached shed | Often a percentage of the dwelling limit |
| Water damage | Sudden and accidental water damage, plus optional endorsements | A burst pipe floods a basement | Sewer backup and overland water usually optional |
| Theft | Belongings stolen and damage from break-ins | Electronics stolen; door forced open | Deductible and special limits apply |
| Fire and smoke | Fire and smoke damage to home and contents | A kitchen fire with smoke throughout | Conditions and exclusions apply |
| Scheduled valuables | Individually listed high-value items | An appraised ring is lost | Usually needs an appraisal or receipt |
1. Dwelling or home building coverage
Dwelling coverage is designed around the physical home and its building components, such as walls, the roof, floors, built-in fixtures and cabinetry, plumbing, electrical and heating systems, and an attached garage. If a covered loss damages the structure, it can pay to repair or rebuild, up to your dwelling limit.
Your dwelling limit should reflect the estimated cost to rebuild your home, not its market value. Market value includes land and local demand; rebuild cost reflects size, construction, finishes and current building costs. FSRA warns that if you undervalue your home or contents, you might not have enough coverage.
2. Attached structures coverage
Structures physically attached to the house, such as an attached garage, deck or porch, are typically treated as part of the dwelling. Exact definitions and limits vary by policy, so check how yours treats items like attached sunrooms or carports.
3. Personal belongings and contents coverage
Contents coverage can protect your belongings, such as furniture, clothing, appliances, electronics, household items and personal possessions, against covered losses, at home and often temporarily away from home.
Special limits often apply to certain categories, such as jewellery and watches, cash, collectibles, fine art, bicycles and sporting equipment. If the value of what you own in those categories is higher than the limit, consider scheduled coverage (see section 10).
4. Personal liability coverage
Personal liability coverage can respond to covered claims where you're legally liable for bodily injury to another person or damage to their property. Examples include:
- a visitor injured on your property
- accidental damage to a neighbour's property, such as water escaping from your home
- certain incidents connected with the insured premises or your personal activities
It can also pay legal defence costs for covered claims. It won't cover every lawsuit or legal expense; business activities, intentional acts and other exclusions apply.
5. Additional living expenses
If a covered loss makes your home temporarily uninhabitable, additional living expenses (ALE) coverage may help pay increased costs, such as temporary accommodation, additional food costs and other eligible expenses above your normal costs. Limits, time periods and eligibility depend on the policy.
6. Other structures
Detached structures on your property, such as a detached garage, shed, fence or gazebo, can be covered under other-structures coverage, often set as a percentage of the dwelling limit. If you have a large detached garage or workshop, check that the limit is enough to rebuild it.
7. Water damage coverage
Water damage is one of the most important, and most misunderstood, parts of homeowners insurance in Ontario. Whether you're covered depends on the cause:
- Sudden and accidental water damage, such as a burst pipe or a failed water heater, may be covered depending on the policy.
- Sewer backup, water or sewage coming up through floor drains, sewers or a sump pump, typically requires an optional endorsement.
- Overland water, surface water from heavy rain, snowmelt or an overflowing river or lake, typically requires a separate optional endorsement, where available.
- Gradual water damage and maintenance-related leaks are typically excluded.
BrokerUnion's home insurance offering lists sewer backup and overland water as optional protections where available. IBC states that sewer backup damage is covered only where the optional coverage has been purchased, and that overland flood coverage may be unavailable in known flood-prone areas. Ask each insurer which water causes are covered, the limit for each and the deductible.
Does home insurance cover mould?
Usually only in limited circumstances, such as mould resulting directly from a sudden, covered water loss, and often with a separate limit. Mould from long-term humidity, condensation or slow leaks is commonly excluded.
8. Theft and vandalism coverage
Covered theft or vandalism can trigger coverage for:
- personal belongings that are stolen or damaged
- damage to the home caused during a covered break-in, such as a forced door or broken window
Your deductible applies, and special limits may apply to items like jewellery, cash and electronics. Some situations, such as theft from a home that's been vacant beyond the policy's allowed period, may be excluded.
9. Fire and smoke damage
Fire is one of the core risks homeowners insurance is designed for. A policy can cover damage from a covered fire, smoke damage to the home and contents, and related losses such as water damage from firefighting. Policy conditions, exclusions such as intentional acts, and the insurer's investigation process apply.
Does home insurance cover storm and roof damage?
Typically, yes, when the damage is sudden and from a covered cause, such as wind, hail or a fallen tree. Gradual wear, an aging roof or lack of maintenance is usually excluded.
10. High-value personal belongings
If you own jewellery, fine art, collections, expensive watches or other valuable items, standard contents sublimits may not be enough. Scheduled coverage lists each item individually at a documented value, usually supported by an appraisal or receipt, and may offer broader protection, such as coverage for accidental loss. BrokerUnion offers scheduled coverage for jewellery, fine art, collections and other high-value items, and its VIP service coordinates coverage for clients with significant valuables.
Renovations and your home insurance
Tell your broker or insurer before and after:
- major renovations
- finishing a basement
- adding an addition or new structure
- structural changes
- significant upgrades to kitchens, bathrooms or systems
Any of these can increase your rebuild value or change the risk during construction. FSRA advises homeowners to disclose renovations and home-based business activities, no matter how small. Your policy may need to be updated so a future claim isn't settled at the old value.
What does homeowners insurance NOT cover?
Exact exclusions vary by insurer and policy wording. Common exclusions include:
- Normal wear and tear
- Poor maintenance, such as an old roof left unrepaired
- Gradual deterioration, rot and rust
- Certain mould situations, especially from long-term moisture
- Overland water and flooding without the endorsement
- Certain sewer and water losses without the endorsement, and gradual seepage
- Intentional damage by an insured person
- Certain business activities that weren't disclosed and endorsed
- Undisclosed short-term rentals
- Earthquake, where not insured by endorsement
- Pests, such as insects, rodents and birds
- Other policy-specific exclusions, such as losses during extended vacancy
Read the exclusions section of your policy, and ask your broker to explain anything unclear.
Does home insurance cover Airbnb or short-term rentals?
Don't assume it does. Standard home policies commonly exclude short-term rental activity unless it's disclosed in advance and appropriate coverage is in place. Depending on how often and how much of your home you rent, an insurer may offer an endorsement or require a different policy. Tell your broker before you list your home.
Replacement cost vs actual cash value
- Replacement cost generally aims to repair or replace covered property with new items of similar kind and quality, without deducting depreciation, subject to policy terms, conditions and limits. Many policies require you to actually repair or replace the item.
- Actual cash value generally reflects replacement cost minus applicable depreciation for age and wear.
Is home insurance mandatory in Ontario?
No Ontario law generally requires every homeowner to carry home insurance; FSRA has noted that home insurance is not mandatory in Ontario. Mortgage lenders, however, typically require it as a condition of financing, usually for the life of the mortgage. That's a contract requirement, not legislation. Even without a mortgage, many homeowners choose insurance to protect their property, belongings and liability.
Home insurance vs mortgage insurance
- Homeowners insurance protects the property, belongings and your liability against covered risks.
- Mortgage insurance protects against specific mortgage-related risks, depending on the product, such as a lender's risk of default or the balance owing if a borrower dies.
They're not interchangeable. Mortgage insurance won't repair your home after a fire.
How much home insurance coverage do you need?
There's no universal dollar amount for every homeowner. Consider:
- Rebuild cost of the house at today's construction prices
- Contents value, ideally from a home inventory
- Liability needs, based on your assets and risks such as a pool or frequent guests
- Other structures, such as a detached garage or workshop
- Water exposure, especially with a finished basement
- High-value items that may exceed sublimits
- Renovations that raised rebuild value
- A home-based business, which may need an endorsement or separate policy
- Rental activity, long-term or short-term
A broker can help estimate rebuild cost and review each limit with you.
How to choose the right [home insurance in Ontario](https://brokerunion.ca/insurance/home)
- Compare multiple insurers on the same coverage
- Review the dwelling, contents and liability limits
- Understand the deductible, including any separate water deductibles
- Ask about replacement cost and its conditions
- Ask about sewer backup and overland water coverage
- Review limits for valuables
- Review exclusions and endorsements
- Disclose renovations and rental activity
- Ask about home business coverage if you work from home
- Review the policy at every renewal
If you also insure a car, bundling can lower the combined premium in some cases; see BrokerUnion's guide to home and auto insurance bundling in Ontario. For how homeowners coverage compares with condo, tenant and rental policies, read home, condo, tenant and rental insurance explained. If you rent rather than own, see homeowners insurance vs renters insurance in Ontario.
Home insurance coverage checklist
Before purchasing or renewing, confirm each of these:
- Dwelling coverage
- Attached structures
- Contents
- Personal liability
- Additional living expenses
- Other structures
- Sewer backup
- Overland water
- Replacement cost
- Scheduled valuables
- Deductible
- Exclusions
- Renovation updates
- Rental or short-term rental disclosure
How BrokerUnion helps
BrokerUnion is an independent, RIBO-licensed Ontario brokerage that compares insurance options across Canadian insurance markets. For home insurance, our brokers:
- review your property, contents and exposures
- explain what your policy covers and what it excludes
- compare quotes and coverage options from the insurance companies we work with
- suggest endorsements, such as sewer backup, overland water, equipment breakdown and scheduled valuables
- assist you through claims
Coverage availability, eligibility and pricing vary by insurer, property and location. For what to look for in any broker, see how to choose an insurance broker in Ontario and how to compare insurance brokers in Ontario. BrokerUnion's compensation disclosures are on its mandatory disclosures page.
Frequently asked questions
Does homeowners insurance cover theft?
Typically, yes, for covered theft of belongings and damage from a break-in, subject to your deductible and any special limits.
Does homeowners insurance cover fire?
Fire and smoke damage are among the core risks typically covered, subject to policy terms, conditions and exclusions.
Does homeowners insurance cover water damage?
Sudden and accidental water damage may be covered. Sewer backup and overland water usually require optional endorsements, and gradual leaks are usually excluded.
Does homeowners insurance cover flooding?
Only if you have overland water coverage, where available. It's an optional endorsement, not standard.
Does homeowners insurance cover personal belongings?
Yes, typically under contents coverage, up to your limit and subject to special limits for certain categories.
Does home insurance cover a detached garage?
Usually, under other-structures coverage, often as a percentage of the dwelling limit.
Does homeowners insurance cover jewellery?
Up to a special limit under contents coverage. For full value, jewellery is typically scheduled individually.
Does home insurance cover expensive electronics?
Usually under contents coverage, though some policies apply special limits. High-value items can be scheduled.
What is replacement cost coverage?
A settlement basis that generally aims to repair or replace covered property without deducting depreciation, subject to policy terms and conditions.
Is home insurance mandatory in Ontario?
Not by Ontario law, but mortgage lenders typically require it.
Does home insurance cover Airbnb?
Not automatically. Short-term rental activity generally needs to be disclosed and covered by an endorsement or appropriate policy.
More answers are on the BrokerUnion FAQ.
Get a home insurance quote
Want to know exactly what your Ontario home insurance policy covers? Get a quote from BrokerUnion and speak with a licensed broker who can compare available coverage options and explain the important exclusions and endorsements.
- Get a home insurance quote: request a quote
- Speak with a licensed Ontario insurance broker: (905) 492-7070
- Explore: all BrokerUnion insurance coverage
What homeowners insurance covers depends on your policy, so the most useful step is reviewing your own coverage, exclusions and endorsements with a licensed broker.
About BrokerUnion
BrokerUnion Insurance Inc. is an independent, RIBO-licensed insurance brokerage headquartered in Pickering, Ontario, with offices in Pickering, Barrie, Mississauga, Whitby, Sudbury and Kitchener. This guide was written by the BrokerUnion Insurance Editorial Team and reviewed by Muqit Aziz, Principal Broker.
This article is for general educational purposes only. Home insurance coverage, eligibility, limits, deductibles, exclusions and pricing vary by insurer and policy. The policy wording governs in all cases. Speak with a licensed Ontario insurance professional about your specific property and coverage needs.