Home insurance in Ontario covers much more than just your house. Depending on your policy, it can protect your home’s structure, personal belongings, liability, detached structures, additional living expenses, and even things like spoiled food, identity theft, and your child’s belongings while away at school. Some coverages are standard, while others require optional endorsements. Here is a breakdown of what your home insurance covers that you probably didn’t know about.
1. The Physical Structure (Dwelling Coverage)
First, your coverage protects the physical dwelling itself from damage caused by fire, theft, or inclement weather. This is the foundation of every home insurance policy. This ensures the structure of your home is protected. This can include the following:
- Roof
- Walls
- Floors
- Built-In Cabinetry
- Plumbing
- Electrical Systems
- Permanently Installed Fixtures.
Always remember that in Ontario, standard home insurance policies do not cover damage from flooding, sewer backup, or overland water. In most cases, this will require an optional endorsement. In the event your home suffers from an insured loss, your policy can pay for the cost to rebuild your home, up to the limits of your policy!
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2. Personal Liability Issues
One of the most valuable parts of one’s home insurance policy is Personal Liability Coverage. This will protect you and your home if you’re found legally responsible for causing an injury to someone or damaging someone else’s property.
For example, if you have a friend or family member over and they slip and fall on your icy walkway, your policy can help cover medical expenses, legal defence costs, settlements or any court-awarded damages. In Ontario, the average homeowner will carry at least $1 million in liability coverage.
3. Personal Property Away From Home (Contents Coverage)
Coverage for your home’s contents protects your personal belongings, both inside and outside your home. This can include the following:
- Furniture
- Clothing
- Electronics
- Kitchenware
- Sporting Equipment
- Appliances
- Other personal possessions
In Ontario, policies can also extend protection to your belongings while travelling or temporarily away from home. For example, if your laptop is stolen from your hotel while you are on a business trip, your policy may provide some coverage.
It is important to keep in mind that some high-value items, such as jewellery, collectibles, artwork or other expensive items, may have some coverage limits. In cases such as this, additional endorsements may be necessary.
4. Additional Living Expenses (ALE)
Home insurance typically covers your property and the belongings inside it. If an accident causes significant damage and makes your home unlivable, your policy covers a hotel or rental property while you cannot live in your home.
If your home becomes uninhabitable due to an insured loss, your policy’s Additional Living Expenses (ALE) coverage can help maintain your normal standard of living while repairs are being completed. This may include:
- Rental housing
- Hotel accommodations
- Airbnb accommodations
- Restaurant meals beyond normal grocery costs
- Laundry expenses
- Storage fees
- Other reasonable living expenses
Depending on the extent of the damage, coverage may continue for several weeks or even months while your home is being repaired or rebuilt.
5. Identity Theft
Most home insurance policies will now offer essential coverage for identity theft and online fraud. Though it has been this way for nearly a decade, it is less well-known than other aspects of your policy. Your home insurance may cover mail costs, lost wages, and legal fees due to a stolen identity.
Depending on your policy, coverage may include the following:
- Legal fees
- Document replacement
- Credit monitoring services
- Lost wages
- Mailing expenses
- Professional identity restoration services
In the past few years, cybercrime has increased drastically. Due to this, this coverage has become a valuable addition for many homeowners.
6. Detached Structures and Landscaping
Did you know that your home insurance covers not just your physical property? It also covers detached structures from your home, including garages, sheds, and even gazebos!
Additionally, coverage will extend to the repair or rebuilding of these structures if an insured peril damages them. Landscaping, mature trees, shrubs, and decorative plants may also receive some coverage if an insured event, such as fire or vandalism, damages them.
7. Spoiled Food After a Power Outage
In the event of a power outage lasting a considerable amount of time that causes the food in your fridge or freezer to spoil, some home insurance policies cover the cost of replacing the spoiled food once your power returns. However, keep in mind that in some cases, if you file for this claim, a deductible will need to be paid upfront.
Coverage amounts will generally vary by insurer and policy, while some claims may be subject to your deductible. It is always worth reviewing your policy to make sure you understand your limits’ availability! This is especially true if you have a large freezer or a large amount of food on your property.
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8. Student Belongings Away at School
If your kids leave home or go abroad for post-secondary education, your home insurance policy will go with them. Just note that it only exceeds the maximum limit listed on your policy. In most cases, coverage will apply as long as your child remains financially dependent on you and maintains your home as their primary residence. In some cases, limits may be lower than your standard contents coverage, so confirming how much protection applies to your child in such a situation is important!
9. Family Gravestones and Plots
Few homeowners realize that, in some cases, Ontario insurance policies provide limited coverage; this coverage extends to family gravestones.
If vandalism, theft, or another insured peril damages a family member’s gravestone, your home insurance policy may help pay for repairs or replacement. Coverage varies by insurer, so ask your broker to confirm whether your policy includes this protection.
10. Stolen or Damaged Bikes
If you run into the event that your bike is damaged or stolen, don’t fret! Every day, people use their bikes for commuting, recreation, and fitness, and home insurance may protect them against theft or damage. This is the case even when it’s away from your property!
If someone steals your bike from a downtown bike rack, your contents coverage may help pay to replace it. If a covered event damages your bike, your policy may also help cover repair costs. However, it is important to keep in mind that expensive road bikes, mountain bikes, or e-bikes may extend your standard policy limit. If you own an expensive bicycle such as that, it may be in your best interest to insure it separately!
11. Lock Replacement and Rekeying
If someone steals your keys, you lose them during a break-in, or a forced entry damages your locks, your home insurance may cover the cost of replacing or rekeying them. Some Ontario insurers will provide coverage for replacing or rekeying your locks.
This coverage will help you restore your home’s security after an insured event and can reimburse the reasonable costs of new locks or locksmith services. Not every home insurance policy includes this coverage, so speak with your insurance broker to confirm whether it’s part of your policy.
Things Home Insurance Covers: Frequently Asked Questions
Does home insurance cover flooding in Ontario?
No. Overland flooding usually requires an optional endorsement.
Does home insurance cover sewer backup?
Usually not under a standard policy. Sewer backup coverage is generally purchased separately.
Does home insurance cover stolen bicycles?
Yes, if your bicycle is considered personal property and falls within your policy limits. Always check with your insurance representative to confirm what your policy does and doesn’t cover.
Does home insurance cover hotel stays?
Yes. If an insured loss makes your home uninhabitable, your home insurance covers hotel stays and other temporary living expenses while contractors repair or rebuild your home.
Does home insurance cover jewellery?
Yes, but expensive jewellery often has policy limits. You may need an additional insurance policy if your jewellery is expensive.
Ensure Your Home is Fully Protected
Every home insurance policy is different. Coverage can vary depending on your insurer, your property, and any optional endorsements you’ve selected. If you have any questions, your best bet is to speak with your insurance broker to ensure you have protection that fits your needs. Feel free to contact one of our experienced isure brokers to discuss your home insurance policy further.
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