A new national survey from Ratehub.ca points to a significant gap between Canadian homeowners’ insurance coverage and their understanding of what that coverage includes.
According to responses from 1,025 individuals across the country, 99% reported having some form of home insurance. Of those, 77% hold homeowners’ insurance, 14% carry condo insurance, and 7% are covered under tenant insurance. Just 1% reported having no insurance at all.
Despite the high coverage rate, the survey found that understanding policy details remains inconsistent. While most respondents said they are somewhat familiar with their policy terms, more than one in five indicated they are either not very familiar or not at all familiar with the coverage they have.
Questions about exclusions revealed even wider uncertainty. Over 33% of respondents were unsure or unaware of what their policies do not cover - such as damage from floods, mold, or infestations.
These types of events are often not included in standard policies and typically require additional endorsements, such as overland water protection or sewer backup coverage.
Awareness of contents coverage also varied. When asked whether their policies cover personal belongings - both inside and outside the home - 40% said they knew what was included. The remaining 60% either lacked clarity or did not know. This could be a concern for policyholders with high-value items like jewelry or electronics, which may have limited protection under a standard plan.
The survey also examined how confident Canadians are that they would be compensated in the event of a major incident, such as a fire or flood. Roughly half of respondents reported being somewhat confident, though many expressed a need to review their policies for reassurance. Another 20% admitted to feeling unsure or doubtful about receiving full compensation.
The findings point to an ongoing need for consumers to review their insurance policies and confirm whether their current coverage matches their actual needs. Misunderstanding or assumptions around coverage may result in unexpected expenses when claims arise.
Are you certain your home insurance covers what matters most to you? When was the last time you reviewed the details of your policy? Share your thoughts in the comments.
