What are home insurance exclusions in Canada?
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Most Canadians are familiar with the basic coverage offered by their home insurance policy. For example, you are covered against the risks of fire, theft or civil liability claims. But do you know what you’re not covered for? These are known as home insurance exclusions. For example, do you know if you’re covered against water damage, earthquakes, high-value property and accidental damage? That’s what we explain in this article, as well as sharing a few tips and tricks.
Home insurance: A reminder
Home insurance is not legally required in Canada. However, mortgage lenders require it for properties that are not fully paid up.
But, in our opinion, it’s essential. Whether you’re a homeowner, tenant or condo owner, home insurance protects your personal property against loss or damage, in addition to liability claims.
There are 3 types of home insurance, and they differ in their level of protection:
- Basic home insurance
- Extended home insurance
- Comprehensive home insurance
Home insurance policies in Canada are fairly comprehensive, covering dwelling, personal property, liability, living expenses and detached structures (homeowner). But you can also add additional (optional) coverages to tailor your policy to your needs. Also, check all the exclusions in your home insurance policy and add endorsements if necessary.
To compare insurance quotes, you can use our home insurance comparison tool (which also lets you compare the exclusions of different home insurance quotes).
To find out more, consult our guides :
General exclusions from home insurance
As mentioned above, your home insurance policy includes items that are not covered. These are known as home insurance exclusions.
The following are some of the most common exclusions in home insurance:
- Damage caused by lack of maintenance
- Flood-related water damage
- Normal wear
- Earthquakes
- Parasitic infestations, mold and rot
- Frost damage to plumbing systems
- High-value items
- Accidental damage
- Business or commercial activities
However, some of the items mentioned above are often covered in a comprehensive home insurance policy. For example, theft, vandalism and natural disasters.
Now, here’s more information on each of these common home insurance exclusions…
Damage caused by lack of maintenance
Home insurance generally does not cover damage caused by lack of maintenance, poor upkeep or neglect. These are foreseeable events that could have been avoided. For example, if you don’t clean your gutters and water infiltration causes damage to your home, your home insurance policy won’t necessarily cover the damage.
Flood-related water damage
Home insurance exclusions vary from company to company. Some include water damage such as sewer backup, while others exclude this type of damage. Flood-related water damage is generally excluded. If you live near a lake or river, contact your insurer and check what is and isn’t included. If necessary, add optional coverage to your current insurance policy.
Normal wear
Your home insurance policy is not a home maintenance fund. As a homeowner, you are responsible for maintaining the condition of your home. For example, if your sink has been leaking for months and you haven’t repaired it, your insurer will reject your claim for water or mold damage.
Earthquakes
Damage caused by natural disasters, landslides and earthquakes may be covered. However, some insurance companies do not include them (especially for earthquakes). However, most insurers offer additional (optional) coverage for earthquake damage. If you live in an area where earthquakes are likely, check your insurance contract or contact your insurer.
Parasitic infestations, mold and rot
Damage caused by insects and rodents (e.g. mice, termites, birds, squirrels) is generally excluded from home insurance coverage. Make sure your roof has no holes through which animals can penetrate, by inspecting it regularly. If you find a breach, seal it to protect your property.
Frost damage to plumbing systems
As a general rule, you’re covered if your pipes freeze and burst. However, your insurance policy does not cover such damage if you go on vacation during the winter. Indeed, insurers have demanded that homeowners cannot leave their homes unattended over the winter months without losing their claims for burst pipes.
For example, you should shut off the water supply to your home and drain the pipes, or make sure someone you trust visits your home every day to check that the heating system is working properly. If frost damage occurs despite these preventive measures, some insurance policies may cover the costs.
Therefore, it’s a good idea to check with your insurance agent or broker. To reduce theft, ask this person to check your mailbox and clear snow from your driveway and balcony.
Business or commercial activities
Damage caused by professional or commercial activities in the home is also excluded from home insurance policies. To be covered, you need to contact your insurer and have an endorsement added to your policy. If this isn’t possible with your current insurer, contact an insurance broker like ClicAssure, who has access to many insurers.
High-value items
Home insurance policies generally cover damage to your personal belongings, whether inside or outside your property. However, some expensive personal property has coverage limits (or maximum amounts). Others are not covered at all. For example, valuable jewelry, works of art, rare collectibles, antique furniture, musical instruments and expensive electronics. Check your insurance policy and compare it with the value of your belongings.
If you need additional coverage, ask your insurance agent or broker about property-specific insurance, which can be added as an endorsement or supplementary coverage to your existing insurance policy.
Accidental damage
Accidental damage is not always covered by home insurance policies. This protection varies for each insurance company. Accidental damage is damage caused by accident. For example, if you drop and break a vase or spill coffee on her computer. In some cases, accidental damage is included or can be added as an endorsement. In short, check the terms and conditions of your home insurance policy or contact your insurance broker to find out more.
Bottom Line
In short, home insurance covers a number of elements, including fire risks and civil liability claims. But there are some things you’re not automatically covered for, like water damage, earthquakes and high-value items that exceed insurance limits. These are known as home insurance exclusions.
To find out more about your insurance, including home insurance exclusions, limits and conditions, contact your insurer. Your insurance agent or broker can answer any questions you may have.
Finally, consult our home insurance comparison tool to find the best insurance for your needs.
Frequently asked questions about home insurance exclusions
What does home insurance not cover?
Home insurance policies vary from one insurance company to another. As a general rule, however, home insurance excludes damage caused by flood, earthquake, lack of maintenance or pest infestation. But also normal wear and tear, intentional damage and high-value items exceeding insurance limits.
What are insurance exclusions?
Insurance exclusions are categories of damage or risks that are not covered by your home insurance policy. However, additional endorsements and coverage can be added to home insurance contracts.
What is civil liability in home insurance?
Liability coverage protects you against possible legal action due to accidental injury or property damage. This coverage includes legal fees and medical expenses.
