A new survey has found that home insurance coverage gaps are catching a significant share of Canadian homeowners off guard, with unexpected repair costs ranking among the most common surprises after purchase – findings that have direct implications for how brokers manage client expectations at renewal.
The Léger survey, conducted in June 2026 on behalf of Allstate Insurance Company of Canada, polled 1,038 Canadian homeowners. It found that 14% cited unexpected repair costs as one of the biggest surprises since buying their home, while 12% pointed to higher-than-expected ongoing expenses. Nearly 79% of respondents said they felt prepared for homeownership before purchasing, yet more than one in three (35%) said they were not confident their home would avoid major maintenance or repairs over the next five years.
The disconnect is not abstract. Standard home insurance policies in Canada cover sudden and accidental loss from insured perils. The Insurance Bureau of Canada (IBC) stated in a March 2026 public guidance notice that roof damage, for example, is not covered if the cause is wear and tear or poor maintenance, a position that reflects the broader boundary all standard policies observe. Maintenance failures, appliance breakdowns, and gradual deterioration fall outside that boundary regardless of cost to the homeowner.
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The survey data points to two client groups carrying the most exposure: younger buyers and owners of older properties.
Respondents who purchased homes that were 10 years old or newer were more likely to say their expectations had been fully met (32%) compared with 24% among buyers of older homes. Owners of newer properties also spent fewer than five hours a month on maintenance at a higher rate: 55%, versus 44% for owners of older homes. Those two figures invert for the clients brokers most need to reach.
According to Statistics Canada’s Housing Economic Account, released in April 2026, the remaining useful service life ratio of Canada’s housing assets edged down to 58.7% in 2025, a decline that the agency notes could indicate new capital investment is required to maintain the housing stock. A large volume of Canadian homes sits at or approaching the age range where HVAC systems, electrical components, and plumbing carry statistically higher failure rates – costs that fall entirely outside a standard policy.
The premium context sharpens the problem further. Statistics Canada’s June 2026 Analysis in Brief found that homeowners’ home and mortgage insurance premiums rose 45% between December 2019 and December 2025, outpacing the all-items Consumer Price Index increase of 21% over the same period. Clients who have absorbed those increases are less likely to accept a denial on a cost they assumed was covered.
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The survey also found that 26% of respondents believe newer and older homes are equally prone to unexpected problems, a misconception that has direct E&O implications if a client assumes their policy covers what it was never designed to include.
Clients who treat home insurance as a maintenance guarantee may direct frustration at their broker when a claim is denied. The renewal conversation is the natural point to draw the line clearly: what the policy covers, what it does not, and what optional products exist for the remainder.
George Ljubicic, agency manager at Allstate Canada, said the pattern in the data is predictable but persistent.
“Many Canadians begin their homeownership journey feeling prepared, but our research shows that unexpected costs can quickly challenge those expectations. Understanding the realities of homeownership, from unforeseen repairs to ongoing maintenance, can help homeowners make more informed, confident decisions about protecting one of their biggest investments,” said Ljubicic.
Alongside the survey release, Allstate Canada announced a Home Services Breakdown and Pest Removal package, designed to sit alongside a standard home insurance policy and cover eligible repairs for items such as furnaces, air conditioners, and electrical systems. The company said in its press release that the package is intended to address costs that fall outside what a standard policy covers. No independent comment on the product was available at time of publication.
