The Best Home Insurance in Toronto

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• Average home insurance cost in Toronto 2025
• What risks do homeowners face in Toronto?
• 2025 home insurance cost in Toronto vs. the GTA
• Why are Toronto homeowners paying more than other GTA cities?
• Average home insurance prices in Toronto by area/forward sortation area (FSA)
• Why is Toronto home insurance so expensive in certain neighbourhoods?
• Choosing the right home insurance policy in Toronto
• Types of home insurance in Toronto
• What you should find on a typical home insurance policy
• Add-ons to home insurance coverage in Toronto
• What is not covered under your Toronto home insurance
• Factors that affect your Toronto home insurance premium
• How to get the cheapest home insurance in Toronto
• Frequently asked questions about home insurance in Toronto

Choosing the right home insurance policy in Toronto

If you own a home in Toronto, or anywhere else in Ontario, you’re not required by law to have insurance. However, most lenders won’t provide a mortgage unless your home is covered by insurance. That's why most homeowners still need a policy. It's also worth buying it even if you already own your home, since it's likely still the biggest asset in your possession.

The question is, what kind of policy do you need? And more importantly, what kind of protections actually exist for your home? We dive into all of that below, where you can find a full breakdown of what a home insurance policy can offer:

Types of home insurance in Toronto

There are three types of home insurance policy that you can choose, all of which can usually be customized to your specific needs:

• Named perils: Also known as 'basic,' this protects the home against perils named in the policy such as fire and wind. This package offers the least amount of coverage available and as a result tends to be the least expensive. Most insurers will not recommend this policy for an occupied home since it's too bare-bones (you can, however, purchase it for an unoccupied home).
• Broad form: Protects the home against all perils as well as protection for some contents. May sometimes be called a ‘standard’ policy.
• Comprehensive: The greatest amount of coverage available, protecting the home against all perils to the home and its contents. It is often referred to as an ‘all perils’ policy. This is the policy most insurers recommend right off the bat. Do note that it may not include all or any add-ons or endorsements, meaning they would have to be added separately.

Who gets covered

• Your spouse and anyone related to either them or you, provided they reside in your home.
• Any dependents under the age of 21 who are students. They may be living in your primary home or temporarily away from it (e.g., college dormitory).

What gets covered

• Property and dwelling: This coverage protects both the structure(s) on your property, as well as your dwelling, from a variety of perils. Protected incidents include fire, theft and water damage, among others. Because some policies may require additional coverage for secondary structures, like a garage or guest house, consult your insurer if anything is unclear.
• Contents and personal property: Contents and personal property coverage protects your possessions, such as furniture, clothing and sports equipment, against theft and vandalism. Some items, like fine art and expensive jewelry, may not be protected under a standard policy. Excluded items can be protected with additional coverage.

What you should find on a typical home insurance policy

Whether you opt for a named perils, broad form or comprehensive home insurance policy, it should cover the following:

Additional Living Expenses (ALE) coverage

If you’re temporarily displaced by an insurable event or an evacuation order, additional living Expenses, or ALE, coverage should pay for your temporary housing costs. For example, if damage to your home forces you to spend a week at a hotel, additional living expenses protection will cover the cost of the room and food, up to a certain amount.

Liability coverage

• Personal liability: This coverage provides protection against liability in the event of injuries, or property to any third party while they are on your property. The default on most home insurance plans for personal liability is $100,000 but it is recommended homeowners have coverage for as high as $1,000,000. Depending on your policy this can go as high as $5,000,000.
• Voluntary medical payments: If you unintentionally injure someone, or someone accidentally injures themselves on your property, this coverage will pay for the medical expenses for up to one year from the date of the accident. Insurers in Ontario offer coverage for Voluntary Medical Payments that typically range between $5,000 – $10,000, and there is no deductible.
• Voluntary property damage: This coverage is for unintentional direct loss or damage you cause to someone’s property. It also covers unintentional loss or damage to someone else’s property by a minor (12 years or under) in your care. Most insurance companies in Ontario set their limits for Voluntary Property Damage at $1,000; however, this will vary according to insurer and policy and often goes as high as $6,000.

Commonly covered perils

• Fire: No matter what causes the fire, your insurance company will cover the costs of replacing, rebuilding or repairing your property and recovering your belongings.
• Smoke: If smoke damages your property, you'll receive coverage. However, the smoke has to have come from a malfunctioning cooking or heating device, not your fireplace.
• Lightning or electrical current: Should lightning strike your property, it could damage the wiring in your walls as well as break your appliances and electronics. This will pay for repairing or replacing whatever ends up damaged. Any other electrical current could do the same (and is also usually covered).
• Explosion: Should your property get damaged or destroyed by an explosion, you will receive coverage.
• Riot: If a riot that takes place near your property causes damage to it, your insurance will pay for the necessary repairs or replacement.
• Theft and vandalism: If your home happens to get robbed, this will pay for the replacement of the stolen items. The same applies if the home gets vandalized.
• Transportation: If your personal property, such as a laptop, gets damaged while temporarily away from your home, then its repairs or replacement will be covered. This applies to fixtures or fitting that are being repaired or in seasonal storage.
• Water damage: This pays for the damage to your property and belongings caused by water leakage from indoor plumbing, heating, air conditioning, sprinklers and similar appliances inside or outside your house. The tricky part is knowing what’s excluded. Most coverages usually exclude sewer back-up and overland flooding, so be sure to confirm what is and isn’t covered with your insurer.
• Hail and wind: Should wind or hail damage your property or belongings in any way, this will pay for them. This includes damage from flying debris as well as falling trees and branches (if caused specifically by hail or wind).
• Aircraft or vehicle impact: If an aircraft or another moving vehicle hits your property and damages or destroys it, you will get coverage. 
• Window breakage: This coverage applies only to homes that are occupied. If your home is vacant (meaning it's unoccupied for more than a month), then this coverage could be void. You'd need vacant home insurance to rectify that.
• Falling objects: This protects your property and belongings from falling objects, including space debris and space craft. There are exceptions, however, such as objects moved by landslides or snowslides. Confirm with your provider what is and isn’t covered.

Add-ons to home insurance coverage in Toronto

Beyond the standard components of Toronto home insurance policy, there are additional coverages you can purchase to further protect your home and the contents within.

These are some of the most common home insurance add-ons, also known as riders, that you can add to your home insurance policy:

• Overland water: Although not every carrier offers this add-on, if your insurer does, it covers property damage from overflowing water from nearby rivers, streams, lakes and thawing snow.
• Sewer back-up: Protects your home when a main sewer backs up and causes damage.
• Earthquake: Covers losses or damage caused by an earthquake. This add-on is especially useful if your home is in an area that is vulnerable to earthquakes.
• Mass evacuation: If an event, like a flood or wildfire, triggers a government issued evacuation order, this add-on pays for some of the expenses you incur while being away from your home.
• Identity theft: Covers the cost of replacing important documents, such as your passport.
• Lock replacement: If you need to replace the locks on your house, this add-on provides coverage.
• Personal valuables: This add-on lets you increase the coverage amount to account for high-value items such as fine art, collectibles and jewelry (in case your regular coverage is not enough).
• Home sharing: If you’re looking to rent out your property, this will provide you with the additional property and liability coverage you need to stay protected.
• Personal umbrella: If you’re worried that your standard liability coverage isn’t enough (e.g., if your lawsuit costs you more than expected), this add-on can make up the difference.

What is not covered under your Toronto home insurance

While home insurance can certainly protect you from a variety of perils, it can’t protect you from everything. Some things you can purchase as add-ons, while others you can’t purchase at all. Here’s what they are:

• Absence from the home: Damage that takes place while you’re away from the home for an extended period of time.
• Alterations: A homeowner will only be protected against damage to a property that occurs during an alteration to it if they have received written permission from the insurance provider to undertake the alteration. However, common repairs such as painting or fixing a broken railing are not subject to this exclusion.
• By-law enforcement: You are not likely to be covered for costs stemming from the application or enforcement of a bylaw.
• Damage from renters: Most insurance providers require specific coverage for landlords. A standard home insurance policy is unlikely to protect you if a renter damages the property.
• Mold: Mold is usually preventable and doesn’t happen suddenly, meaning that you, as a homeowner, can make sure it doesn’t occur. For instance, if you realize that the air in your home is humid enough to cause mold, you can take the necessary steps to resolve the issue. That’s why home insurance does not cover mold. It’s on you to deal with it.
• Pest infestations: Though pest infestations, such as mice, bedbugs, cockroaches, and termites, can sometimes come out of nowhere, taking care of them is your responsibility, as part of general upkeep. So, any damage an infestation ends up causing is unlikely to be covered. Your best bet is to address the problem as soon as you notice it.
• Volatile substance: If you have more than one gallon of a volatile substance on your property and a fire or explosion takes place, you may be denied coverage. This is likely to include gasoline.
• Purposeful damage: If you purposely damage your own property or its contents and file a claim for it, you will not be covered. This is, in fact, considered to be insurance fraud, so don’t do it (though you are welcome to damage your own property).
• Intentional injuries to guests: If you intentionally hurt a guest in your own home, your liability coverage will not protect you. And no, there isn’t an add-on for this either. So, don’t purposely hurt your guests.
• Existing damage: You’re unlikely to be covered for damage that began before you held the policy.

How to get the cheapest home insurance in Toronto

Getting the cheapest home insurance in Toronto is fast and simple. Here are some steps you can take to stretch your insurance dollars:

1. Increase deductibles: Deductibles are another risk factor your Toronto home insurance provider looks at when calculating your premiums. The higher your deductible, and the more you are willing to pay out-of-pocket, the less risk it is for your provider. 
    
2. Install alarms: Making your home safe, and less of a risk for damage or theft, can also save you money on your Toronto home insurance rates. Your home insurance provider assesses your rates based on risk. Reduced risk means fewer claims and therefore lower rates. 
    
3. Upgrade electrical and plumbing systems: If your home is on the older side, then it may have outdated plumbing and electrical systems, which increase the risk of flooding and fire, respectively. If you modify those systems and tell your insurer about it, your premiums may go down. 
    
4. Install severe weather and flood protections: Make sure your home has enough sump pumps, your basement walls are reinforced, and your roof has been repaired in the last 10 years. All of these can reduce the risk of weather-related damage, especially water damage, and lower your premiums as a result. 
    
5. Ask for discounts: Many Toronto home insurance providers will offer discounts to clients who are members of school alumni associations, unions or other organizations. 
    
6. Bundle up: Using multiple insurance products from one provider can also save you money. By bundling home, life and auto insurance, for example, you will qualify for discounts from your provider. They appreciate your loyalty and will pass on savings to you as a reward for your business. 
    
7. Comparison shop: Sites like Rates.ca give you fast and easy access to the cheapest Toronto home insurance rates from the city’s top providers. Simply provide us with some information on the home you want to insure and a few other details, and in minutes you’ll have a list of cheap insurance rate quotes to compare.