Economical Home Insurance Review (2026)
Economical Insurance: What you should know
- Founded: 1871 (155 years in business)
- Parent company: Definity Financial Corporation
- Underwriting companies: Definity Insurance Company, Definity Insurance Company of Canada
- Website: https://www.economical.com/en/home
- Phone number: 1-800-607-2424
- Availability: Nationwide
- Home insurance products: Home, condo, landlord, cottage, and tenant insurance
Economical Insurance has recently undergone a major restructuring in its transition from a mutual insurance company to a publicly traded corporation, Definity Insurance. Definity also owns Sonnet Insurance and recently acquired Travelers Canada.
What does Economical home insurance cover?
Economical home insurance covers damage to the physical structure of your home, structural damage to detached outbuildings and other structures like fences, and your personal belongings like clothing, furniture, and electronics. It will also cover additional living expenses like hotels and meals if you’re displaced from your home by a covered loss, as well as your legal liability for property damage or injuries to others.
A standard Economical home insurance policy is an all-risks policy with guaranteed replacement cost coverage for the full cost to rebuild your home, even if it exceeds the estimated cost stated in your policy limits.
Standard coverage options
All Economical home insurance quotes include the following standard coverage options:
- Dwelling coverage: Covers your home’s physical structure (e.g., walls, roof, foundation, and built-in home systems)
- Detached structures coverage: Covers outbuildings, sheds, gazebos, fences, detached garages, and other structures not attached to your home’s structure
- Personal property (contents) coverage: Covers your personal belongings such as furniture, clothes, electronics, and collectibles
- Personal liability insurance: Covers your own legal costs and medical bills, property repairs, and related expenses for others if they’re injured on your property or as a result of your action or inaction, or if you damage someone else’s property
- Additional living expenses coverage: Covers the added cost of hotel rooms, meals, and other living expenses if you’re unable to live in your home temporarily due to a covered loss
Optional coverage and endorsements
Depending on your location and insurance needs, you may have the option to add the following endorsements to your Economical homeowner insurance:
- Earthquake coverage: Covers damage caused by earthquakes and other earth movement, which is excluded from standard home insurance
- Sewer backup coverage: Covers water damage caused by the backup of water from a sewer or water main, which is excluded from standard home insurance
- Overland water coverage: Covers water damage caused by water outside the home including heavy rain, overflowing rivers, spring run-off, or snowmelt, which is excluded from standard home insurance
- Increased special limits: Raises individual coverage limits for certain high-value personal belongings such as jewellery, bikes, collectibles, wine, and sporting equipment to insure their full replacement cost
- Bylaw insurance: Covers additional repair expenses necessary to bring your home in compliance with building codes after a loss
- Green endorsement: Covers additional repair expenses associated with environmentally friendly construction, up to $10,000
Other endorsements may be available for Economical home insurance. Find a broker in your area to get a complete list of available add-ons.
To get an Economical insurance quote, you’ll need at least the following information:
- The address of the home you want to insure
- The year the home was constructed
- The year the roof was last replaced or upgraded
- The square footage of the home
- Information about any past insurance claims
- Information about any monitored alarm systems
Your broker may request additional information, so have your home’s inspection paperwork, home listing, and any other documentation on hand to answer more specific questions.
Economical home insurance discounts
Economical Insurance only advertises a few home insurance discounts online:
- Home and auto bundling discount: If you purchase both home and auto insurance from Economical, you could save on both, though Economical does not disclose a maximum or average discount amount.
- Claims-free discount: Applicants with no history of insurance claims may qualify for additional savings.
- Monitored alarm discount: A centrally-monitored burglar or fire alarm could earn you a discount.
- Mortgage-free discount: If you’ve paid off your mortgage and own your home outright, you may qualify for a discount.
Economical might offer other discounts, so ask your insurance broker if you’re eligible for other savings opportunities.
How much does Economical home insurance cost?
Because Economical Insurance only sells property insurance through a network of independent brokers, you can’t get a quote online for home insurance. As a result, no data is publicly available on Economical’s average home insurance rates.
The premium you pay for Economical home insurance depends in part on the following factors:
- Province: Regional construction costs, climate risks, and other factors shape home insurance premiums. Ontario’s home insurance costs are near the national average among Canadian provinces.
- Home location: Proximity to fire services and water sources, as well as local property crime rates and severe weather patterns, shape your home’s unique risk profile.
- Home age: Older homes may cost less to repair due to less advanced materials and home components, but they’re also more vulnerable to damage. A well-maintained older home may be cheaper to insure.
- Roof age: Your home’s roof is its best defense against a wide range of perils, from fire to hail, so insurance companies look closely at its age and condition when setting rates.
- Home systems: Up-to-date plumbing, heating, and electrical systems can reduce home insurance costs by lowering your risk of claims. Sump pumps and backwater valves also lower risk.
- Deductibles: A higher all-perils deductible can lower the cost of home insurance, while a low deductible comes with higher premiums.
- Coverage limits: The higher your coverage limits, the more you’ll pay.
- Endorsements: A policy with multiple endorsements will cost more, so weigh the value of each add-on before including it in your coverage.
The Economical home insurance claims process
If you need to make a home insurance claim with Economical, you’ll follow the process outlined below:
- Document and report the loss: Take photos and videos of any damage to your home and belongings and reach out to Economical as soon as possible to report the loss.
- Make emergency repairs, if needed: Economical can recommend an approved restoration contractor to quickly repair any immediate damage, or you can choose a trusted contractor of your own.
- Provide as much information as possible: Your claims adjuster needs as much information about the incident as possible, including a detailed description of any personal items lost or damaged by a covered peril. Have model numbers, receipts, and proof of ownership on hand.
- Stay in touch with your claims team: If you need payment for additional living expenses like a hotel stay while repairs are completed, communicate frequently and clearly to provide receipts, invoices, and other documentation for your loss of use claim.
You can contact Economical’s 24/7 claims service hotline at 1-800-607-2424 or contact your personal insurance broker, who will connect you with Economical’s claims team.
Is Economical good for claims?
To get a sense of how actual Economical customers feel about the way the company handles claims, we scoured Reddit forums for discussions of Economical home insurance claims. We found some complaints about slow adjuster response times, but overall were impressed by the positive feedback from real policyholders.
How Economical home insurance compares to other providers
Here’s how Economical compares to other large Canadian insurers.
* Average monthly cost of comprehensive coverage.
** Online quoting currently unavailable in Alberta.
Is Economical home insurance right for you?
Economical home insurance may be an excellent option if you’re able to get a competitive quote through a broker.
Economical is a trusted home insurance provider with excellent reviews from many current and former customers and a reputation for fair, efficient claims handling. Compare any home insurance quotes you receive from Economical with quotes for the same coverage from at least 3–5 other insurers. A licensed home insurance broker can help you compare coverage offerings, service reputation, and pricing factors.
FAQ: Economical home insurance
This article is for general information only and is not insurance or legal advice. Examples and any sample quotes or rate ranges are illustrative and do not constitute an offer or guarantee of coverage, price, or eligibility. Actual coverage, discounts, and premiums depend on your individual circumstances and the insurer provider; if there is any discrepancy, your policy and insurer documentation govern. For advice about your situation, speak with one of our licensed insurance professionals.