Almost every homeowner in Ontario understands the value of home insurance well enough to know it’s worth the cost and to make sure they have it.
The question is though, is having home insurance mandatory in Ontario?
Mostly no, sometimes yes.
HOME INSURANCE IS NOT REQUIRED BY LAW IN ONTARIO OR CANADA
No law either provincially in Ontario or nationally in Canada says homeowners are required to protect their homes with insurance.
The main reason why a lot of people in Ontario ask the question about whether or not home insurance is mandatory is likely that other types of insurance ARE mandatory in Ontario.
WHEN IS HAVING ONTARIO HOME INSURANCE MANDATORY?
While having home insurance in Ontario may not be a law, home insurance is mandatory if you’re applying for a mortgage in Ontario.
Mortgage lenders in Ontario like Niagara Regional Mortgage Services Inc of Niagara and Safe Bridge Financial Group of Haldimand will not be able to provide you with a mortgage loan to buy or refinance a home if you do not have home insurance.
If you have finished paying off your home or we’re able to purchase it for cash you legally do not need to have home insurance, although it would be a big risk not to!
RELATED ARTICLE: How To Save Money On Home Insurance
AUTO INSURANCE IS MANDATORY IN ONTARIO
According to the FSRA all motorists in Ontario are required by law to have auto insurance.
Your Ontario auto insurance policy must include:
- Third-party liability coverage
- Accidents benefits coverage
- Direct compensation property damage (DCPD) coverage
- Uninsured automobile coverage
- Motorcycle Insurance
- Snowmobile insurance (unless it’s only being driven on the owners own property)
- ATV Insurance
- RV Insurance
Getting caught driving without valid auto insurance in Ontario comes with steep fines ($5,000 – $50,000) and a likely loss of a driver’s license.
This law also applies to:
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.
