Canada Home Insurance

By: EconomyWatch   Date: 26 May 2010

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Canada home insurance policy provides cover against possible damage to a home and its contents in the wake of unforeseen circumstances. There are different kinds of Canada home insurance policies based on the scope of cover. A comprehensive policy will cover the building and its contents, as well as the home owner against personal liability. Renters insurance will cover only the contents while homeowners insurance covers a home’s overall structure.

To avail a Canada home insurance policy, the applicant must state the cost replacement value clearly. This represents the value to reconstruct the house in case of complete damage.

Site Visits by Canada Home Insurance Companies to Analyze Property

Every Canada home insurance company conducts a site visit to analyze the property’s value. Typically, an insurance company agent analyzes the possible risk factors. After this, the property value is determined.

The following factors are considered in the process of determining Canada household insurance:

  • Electrical wiring: Faulty electrical wiring increases the risk of damage due to fire. Some insurance companies may allow specific time to correct faulty electrical wiring. Otherwise, a home owner may have to sign an undertaking to this effect. Electrical appliances are also checked as low quality electrical fuse can increase the risk of fire due to short circuit.
  • Galvanized/ Lead Pipes: Take the example of numerous Canadian houses that are known to have old galvanized or lead pipes. These old fittings may cause accidents. An insurance company prefers to upgrade them to new fittings.

  • Heat Source: The type of furnace used in the home can also lead to risk factors. An insurance company would prefer use of electric heat or compressed gas furnace instead of oil furnace. Remember, wood stoves emit carbon monoxide. So, it is excluded under home insurance policy.
  • Age of Construction: The overall age of the house determines its strength to bear natural calamities such as an earthquake. Older homes can get destroyed in 3-richter scale earthquake. So, the policy cover amount will take these factors and depreciate the same.

    • Keeping these factors in mind, an insurance company agent will prepare a risk analysis report. Based on the risk factors indicated, the Canada home insurance company will finalize the face value amount, policy cover and the premium. To ensure low premium on Canada home insurance, it is important for a home owner to lessen the risk factors.


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