According to a recent survey by Tarion around 35% of Ontario home buyers are first time home buyers.
Buying your first home is an exciting milestone and getting the right home insurance coverage is a key part of protecting one of the biggest investments you will make in your life.
Here are some tips to help you navigate home insurance as a first-time home buyer in Ontario:
1/ Understand What Home Insurance Covers
Most standard home insurance policies will cover:
Dwelling coverage: Protects the structure of your home against damage (e.g., fire, lightning, vandalism).
Personal property: Covers your belongings (e.g., furniture, electronics) against theft or damage.
Liability protection: Protects you if someone is injured while on your property.
Additional living expenses (ALE): Covers temporary housing costs if your home becomes uninhabitable due to one of the covered events listed above.
2/ Know What’s NOT Covered By Home Insurance
An understandable mistake some first time home buyers make when it comes to home insurance is that it will cover anything and everything for the home.
However, the truth is that many standard policies typically don’t cover:
- Flooding (you’ll likely need separate flood insurance).
- Earthquakes (this sometimes requires additional coverage).
- Maintenance issues (e.g., mold or pest infestations caused by homeowner neglect).
It’s important to ask your insurance company a lot of questions so you are fully aware of what is and what is not covered by your home insurance policy.
3/ Shop Around
Take it from me, don’t just sign on with the company your parents recommend sight unseen. While yes, we should all listen to recommendations by those closest to us, we should also do some leg work ourselves to make sure we’re choosing the right insurance provider.
Get multiple quotes (starting here) and compare premiums, coverage limits, deductibles and other policy details from different home insurance companies.
Aside from how these numbers stack up, ask yourself who you feel most comfortable with. Especially for first time home buyers it’s important we feel comfortable with our insurance company.
Bundle policies: Consider bundling home and auto insurance with the same company to help simplify and save.
Check reviews: Research customer service ratings for insurers to ensure they handle claims efficiently.
4/ Determine How Much Home Insurance Coverage You Need
Replacement cost vs. market value: Insure your home for its replacement cost (the cost to rebuild) rather than its market value.
Valuable personal property: If you own expensive items like jewelry or electronics, consider additional coverage (a rider or endorsement) to make sure your most valuable possessions are mentioned specifically in your policy.
RELATED ARTICLE: Home Insurance, Is It Covered?
5/ Evaluate the Home Insurance Deductible
The deductible is what you pay out-of-pocket before insurance kicks in when making an insurance claim.
Going with a higher deductible usually lowers your premium, but make sure you can afford the deductible in case of a claim.
6/ Consider Special Circumstances
HOA insurance: If you buy a condo or townhome, your homeowners’ association might have a master policy. You’ll likely still need individual coverage for your unit and belongings.
Older homes: If you buy an older home, check for additional insurance requirements due to outdated plumbing, electrical systems, or roofing. Read more about why home inspections are important for first time home buyers.
7/ Review Local Risks
Flood zones: Check if your home is in a flood zone and whether flood insurance is mandatory.
Natural disasters: Assess risks for hurricanes, wildfires, or earthquakes in your area and add coverage if necessary. Luckily (at least for now) this is not much of a concern for us here in Niagara and Haldimand (although Ontario Tornados are on the rise).
8/ Ask About Discounts
We here at Erie Mutual Insurance are proud to offer a 25% first time home buyer insurance discount which when combined with a higher deductible can help save you up to 50% off the cost of your home insurance.
That’s huge!
There may also be other home insurance discounts that could come into play. While you won’t qualify for something like a mature customer discount or mortgage-free discount (not yet at least), there are others you may qualify for.
- Monitored alarm discount
- New home discount
- Multi-line discount
Contact us anytime and let us help get you the best coverage for the lowest cost.
9/ Maintain Your Home Insurance Policy
Review your coverage annually: Ensure it reflects changes like renovations or acquiring high-value items.
Update your insurer: Notify your insurance company about changes in your circumstances, like getting a new roof, or adding a small addition or outbuilding.
BONUS TIP: Understand Claims Processes
Ask us about our claims process before purchasing a policy.
Keep detailed records (photos, receipts) of your belongings for easier claims filing.
RELATED ARTICLE: Home Insurance Claim Process in Ontario
Taking these steps will help you secure reliable coverage and protect your new home!
Erie Mutual Insurance proudly serves the commercial insurance, farm insurance, home insurance and auto insurance needs of members throughout Southern Ontario including Haldimand, Niagara and Hamilton.
Please don’t hesitate to contact us with any questions you may have about this or any other topic related to your insurance.
