Is Home Insurance Mandatory in Ontario? (2026 Guide)
Do you need home insurance in Ontario?
In most cases, yes—because it’s required by lenders and landlords.
Home insurance isn’t legally required in Ontario, but it’s often mandatory in practice. Most mortgage lenders, condo boards, and landlords require you to have insurance as a condition of financing or occupancy. In other words, getting housing in Ontario often involves shopping for a new home insurance policy.
If you’re not sure whether you need home insurance, check your mortgage agreement, condo bylaws, or lease.
What happens if you don’t have home insurance in Ontario?
If you don’t have home insurance in Ontario, your mortgage, condo purchase, or lease will probably fall through, or you could face penalties like forced insurance, higher costs, or eviction.
After you’ve moved in, the penalties of cancelling your home insurance can usually be found in your housing agreement. Your mortgage lender may take out a policy on your behalf and add it to the cost of your mortgage payments, your condo association could sue, or your landlord may try to end your lease.
Because all three parties are listed as principal owners on their respective buildings, your insurance company will likely send them a notice of cancellation the moment you cancel or stop paying for insurance.
If something happens while you’re uninsured, you’ll be responsible for paying the full cost of repairs or replacements out-of-pocket, plus the penalties listed in your contract. Worse yet, if you’re forced to reinstate a home insurance policy after cancelling prematurely, you’ll likely face higher premiums as a result.
How much home insurance do you need in Ontario?
Most lenders and landlords require specific coverage, especially liability and dwelling insurance.
The type and amount of home insurance coverage you need—and when it should start—should be listed in your mortgage, condo purchase, or rental agreement. Typically, your lender, condo board, or landlord will ask for proof of insurance before you move in.
Home, condo, or tenant insurance requirements usually specify at least $1 or $2 million in personal liability coverage. Liability covers the cost of addressing any unintentional injuries or property damages to visitors to your home, and paying legal fees if the injured party sues.
Typically, homeowners policies must also provide enough property insurance to completely cover replacement costs. Your mortgage lender may ask for a loss payee clause to be included, which means that the insurance company will pay them the full value of the home directly if it’s destroyed. If your down payment was 20% or less than the value of your home, you may also be required to purchase mortgage default insurance, which is a separate product from home insurance.
As for condo owners, a mandatory policy will typically provide enough dwelling insurance to repair the condo unit and the value of any upgrades or renovations you’ve made. Renters insurance tends not to have dwelling coverage requirements, and it’s rare for any agreement to specify how much contents coverage you need to repair or replace your personal belongings.
Here’s a quick run-down of the types of home insurance coverage available and whether they’re considered standard features or add-ons:
Make sure to check your insurance policy documents for named perils, exclusions, and other coverage details.
How much does home insurance cost in Ontario?
The average cost of home insurance ranges from $1,000 to $2,000 per year in Ontario, or approximately $83 to $167 per month.
Your costs will vary depending on the type and amount of coverage you choose, as well as the location, features, and construction of your home. The more expensive your house is to repair or replace, the higher your home insurance premiums. You’ll also pay more to insure your home if you have a claims history.
For condo owners and tenants, the cost of your policy mostly depends on how much coverage you choose, as well as additional coverage options. For example, if you’re a fine art collector, you’ll have to pay extra to place higher coverage limits on the most valuable pieces in your collection.
FAQ: Is home insurance mandatory in Ontario?
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.