How to Get the Most Comprehensive Home Insurance

Written by: R.E. Hawley
Insurance Writer
Edited by: Jessica Barrett
Content Marketing Manager
Updated
April 22, 2026
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Key Takeaways
  • Comprehensive home insurance covers your home and belongings against all risks except those explicitly excluded.
  • Guaranteed replacement cost pays to fully rebuild your home, even if costs exceed your policy limit.
  • Endorsements like water damage, earthquake, and high-value item coverage fill key protection gaps.
  • The right policy prioritizes all-risk coverage and essential add-ons while staying within your budget.

What is “comprehensive home insurance”?

Comprehensive home insurance covers your home and personal belongings against all risks except those explicitly named in your policy. Common named exclusions for comprehensive all-risk home insurance policies include flood, earthquake, and normal wear and tear. 

For the most comprehensive coverage, home insurance companies in Canada typically offer guaranteed replacement cost coverage, which ensures that your policy will pay to rebuild your home with materials of similar kind and quality, even if the cost exceeds your policy’s dwelling coverage limit.

Home coverage you can count on.

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How to get the most comprehensive home insurance

A truly comprehensive home insurance policy has three key features: 

  • All-risks coverage: Unlike “broad” or “basic” coverage, which limits coverage for your dwelling, its contents, or both to a specific list of named perils, comprehensive coverage will pay out if your home is damaged by anything that’s not listed as an excluded cause of loss, such as flooding or normal wear and tear. 
  • Guaranteed replacement cost: This policy feature overrides your policy’s dwelling coverage limit. It guarantees that your insurance company will pay for a full rebuild with comparable materials, even if it costs more than your policy’s stated limit. 
  • Endorsements: Each homeowner must decide which optional coverage to include, but standard high-value endorsements like extended water damage, earthquake insurance, and additional coverage for high-value property can fill in gaps that may exist in your base policy. 

To make sure you’re getting the most comprehensive option for home insurance, compare coverage options from several different insurers and consider working with a licensed insurance advisor who can recommend an appropriate level of coverage based on your home, risk factors, and overall financial picture. 

When you request home insurance quotes with PolicyMe, you’ll always see multiple coverage levels and have the option to adjust coverage options to see how they impact your price in real time. You can also speak with a licensed advisor who can provide expert insights into the most comprehensive home insurance packages you’re eligible for.

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Questions to ask when shopping

  • What policy limits apply to my coverage—and can they be raised?
  • Does my policy include guaranteed replacement cost coverage?
  • What perils are excluded from my homeowners insurance?
  • Can I add endorsements to my policy to cover those perils?
  • Does this insurance provider offer any less-common endorsements that aren’t available from competitors?

Comprehensive vs. broad vs. basic coverage

Canadian home insurance companies offer three basic levels of property insurance coverage, from comprehensive to basic.

 
Comprehensive
Broad form
Basic
Your home’s physical structure
Covered against all perils except those named as exclusions
Covered against all perils except those named as exclusions
Only covered against named perils
Your personal belongings
Covered against all perils except those named as exclusions
Only covered against named perils
Only covered against named perils
Average premiums
Higher
Moderate
Lower
Who needs it
Ideal for most homeowners
Ideal for budget-conscious shoppers
Ideal for difficult-to-insure homes
How to get it
Default option from most insurers
Speak with a licensed advisor
Speak with a licensed advisor
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Understand what your policy doesn’t cover

Even the most comprehensive home insurance comes with limits. Check your policy documents for a list of exclusions, which may include:

  • Routine wear and tear
  • Earthquakes and other earth movement (may require endorsement)
  • Damage from freezing (either inside or outside the home)
  • Damage caused by insects, rodents, or other vermin
  • Damage caused by mold
  • Damage caused by neglect
  • Intentional or criminal damage
  • Pollution
  • War, terrorism, or nuclear threat

If you’re not sure what your policy covers, speak with an insurance broker or advisor.

How comprehensive should your home insurance be? 

With the cost of home insurance rising across Canada, many seasoned and first-time homeowners are faced with a difficult question: how much home insurance coverage do I need—and how much can I really afford? 

The simple answer: You should buy the most comprehensive home insurance policy that fits your budget. 

The real answer: Most homeowners should look for an all-risks policy with built-in guaranteed replacement cost coverage and the highest deductible they could realistically afford to pay in the event of a major loss. 

You probably also need: 

  • Higher liability limits: The default personal liability limit offered by most home insurance companies in Canada is $1 million. It’s usually worth it to raise that to $2 million or more, depending on your financial situation. 
  • Some form of extended water damage: Insurers may offer overland flood, sewer backup, and other extended water coverage as standalone endorsements or package them into a single comprehensive water add-on. Compare costs and coverage flexibility to find your best option. 
  • Earthquake insurance (in some areas): Homeowners in British Columbia, Ontario, and Quebec may need an earthquake insurance endorsement. Policyholders in other areas may not face enough earthquake risk to make this add-on worth the cost. 
  • Extra coverage for high-value items: Your base policy likely sets low limits on expensive personal property like jewellery, bikes, art, and wine. Ask an advisor which of your items may need separate higher limits. 

Nice-to-have add-ons that might not make or break your coverage include: 

  • Claim forgiveness
  • Cyber protection
  • Identity theft protection

At PolicyMe, our philosophy is simple: Coverage should always come before price while staying within your overall budget. 

Add-ons that make a policy more comprehensive

A standard home insurance policy typically only covers your main dwelling, detached structures, your personal belongings, additional living expenses if your home is uninhabitable due to a covered loss, and your personal liability. Certain causes of loss, such as overland flooding, may be excluded by default. 

It’s common for most home insurance policies to include a few endorsements to modify and extend your coverage. Some of the most typical home insurance endorsements include:

Endorsement
What it covers
How common it is
Sewer backup coverage*
Water damage caused by a backup through sewers, drains, or sump pumps
Extremely common
Overland water coverage*
Water damage caused by fresh water entering the home, such as from an overflowing river or lake, or accumulating groundwater
Extremely common
Service line coverage
Repairs and related costs if a service line (e.g., water main, power or data line) on your property fails
Extremely common
Special limits for high-value items
Higher monetary limits for expensive or hard-to-value items of personal property such as jewellery, sporting equipment, bikes, art, wine, or collectibles
Extremely common
Claim forgiveness
Prevents an increase in home insurance premiums due to your first claim after being claims-free for a certain period
Fairly common
Identity theft protection
Legal fees, lost wages, and other common costs associated with identity theft
Fairly common
Earthquake** insurance
Damage caused by earth movement and/or associated fire, explosion, or smoke
Fairly common (regional)
Legal protection coverage
Legal expenses and helpline access
Fairly common
Bylaws coverage
Cost to rebuild or modify home to comply with building codes
Fairly common
Home-based business insurance
Liability, property damage, and other costs associated with a business based in your home
Fairly common
Green endorsement
Cost difference to rebuild your home with eco-efficient materials and appliances
Less common
Disappearing deductibles
Reduces deductible for each year you don’t make a home insurance claim
Less common
Cyber protection
Costs associated with cyber attacks, cyberbullying, data breaches, or online fraud
Less common
Home equipment breakdown coverage
Damage to appliances or electronics caused by sudden, unexpected mechanical or electrical failure
Less common

* These endorsements are often packaged together in a single “extended water damage” endorsement. 

** Earthquake insurance may be required by your insurer or unavailable depending on the level of risk in your location.

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Included vs. optional endorsements

Some home insurance providers automatically include certain endorsements, such as sewer backup or overland water coverage, in their standard policy offerings; others may only be available if you call to speak directly with an advisor.

Be aware that insurance companies often offer more endorsements that you see when signing up for quotes. Do your research and work with an insurance broker, if possible, to make sure that you’re not missing out on key coverage add-ons!

How to choose the most comprehensive home insurance for your situation

Every homeowner’s insurance needs are different. The most comprehensive insurance policy—with all the bells and whistles your provider offers—may not be the best option for your situation.

When choosing how much coverage to include in your policy, you’ll need to take the following into account:

  • Your home: High-value, architecturally unique, and older homes may all need more comprehensive coverage than affordable new builds. You might also need additional coverage for a smart home.
  • Your location: The overall risk of severe weather and natural disasters plays a role in how much coverage you need. Local rates of property crime like theft and vandalism may also factor in if you live in an urban area.
  • Your mortgage: Mortgage lenders may have specific coverage requirements. Check your documents.
  • Your assets: Liability coverage protects your assets (think savings, investments, and property) if you’re found responsible for injuries or property damage. High earners and those with considerable assets may need more liability protection.
  • Your discount eligibility: If you have the option to reduce your overall price with big discounts, such as bundling home and auto insurance, you may be able to afford a higher level of coverage.
  • Your tolerance for risk: Are you willing to pay extra for peace of mind? How much risk is too much?
  • Your overall financial situation: Are you shopping on a budget or looking to upgrade your current policy thanks to more robust finances? Are cost savings a “nice to have” or a major priority for you?

No single home insurance package fits every homeowner’s needs. PolicyMe’s digital platform does the heavy lifting for you, delivering a clear, personalized recommendation tailored to your unique profile.

Home coverage you can count on.

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FAQ: Most comprehensive 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.