Home insurance can look complicated, but most policies are built from the same four building blocks. Understanding them makes it much easier to compare options and spot gaps.
1. Dwelling
This covers the structure of your home: walls, roof, floors and built-in features like cabinets and plumbing. Condo owners usually insure their own unit’s improvements, while the condo corporation insures the building. Renters do not need dwelling coverage at all.
2. Contents
Your belongings, from furniture and clothes to electronics. Many policies also cover your things when they are away from home, such as a laptop stolen from your car. Items like jewellery, art or bikes may have limits unless you add extra coverage.
3. Personal liability
If someone is injured at your home, or you accidentally damage someone else’s property, liability coverage can help pay for legal costs and damages.
4. Additional living expenses
If an insured event, such as a fire, makes your home unlivable, this helps pay for a hotel or rental and other extra costs while repairs happen.
Common gaps to check
- Sewer backup is often an optional add-on.
- Overland water from flooding is usually separate coverage, where available.
- Earthquake coverage is typically added separately.
- Wear and tear and gradual damage are generally not covered.
Every policy is different, so always read what is covered and excluded. Our promise when we launch: we will explain these choices in plain language before you buy.
