Home insurance and coverage: 10 things you need to know

1) A broker doesn’t represent all insurers

An insurance broker can compare several insurer offers—but not all of them. Direct insurers such as Beneva or Desjardins, or a property and casualty insurance agency like CAA-Quebec, are only accessible if you contact them yourself. To get a true comparison, you sometimes need to do part of the insurance shopping on your own.

Also note that there are specialized insurers for high-risk insurance profiles. You’ll pay more in insurance premium, but you’ll receive coverage. Your broker can help you find solutions.

2) Bundling your insurance can help you save

If you insure your home, cottage, and even your vehicles with a single insurer, you may qualify for a multi-policy discount. It’s also easier to manage and can simplify insurance claims in the event of a loss while covering the costs more efficiently.  

3) Your credit score can affect your premium

Your insurer may review your credit score and even information linked to your credit cards. A strong credit history can work in your favour. Few people realize that financial behaviour can carry as much weight as insurance history.

Your neighbourhood, building type, access to emergency services, crime rate in your area, and flood risk are also taken into account.

4) Water damage and natural disasters aren’t always automatically covered

Contrary to popular belief, home insurance doesn’t automatically cover all water damage. Sewer backup, water infiltration, and flooding, for example, require additional coverage.

Good to know: If you suffer flood damage, you may be eligible for financial assistance through Quebec’s Ministry of Public Security.

Some natural disasters, such as floods or earthquakes, also require added protection. Home insurance generally covers windstorms, hail, lightning, and wildfires.

Good to know: A well-maintained home that’s regularly inspected will withstand natural disasters more effectively.

5) Personal liability insurance is essential—even if it isn’t mandatory

In Quebec, personal liability insurance for homeowners isn’t mandatory, except for condo owners. Still, it provides valuable protection if you unintentionally cause bodily injury or property damage to others. It covers incidents related to your residence, your belongings, and even your pets.

6) Your home insurance may cover losses caused by a power outage

A power outage can sometimes lead to significant food loss. If you have to throw food away, make note of the quantity and value of the discarded items. Then contact your insurer, who will explain your home insurance coverage limits.

Tip: Take one photo per batch of discarded items.

7) Your home insurance may cover a loved one outside your household

A student who temporarily leaves home to study full-time may have their belongings and personal liability protected under your home insurance policy. Be sure to verify the age limit imposed by your insurer and confirm that coverage is sufficient.

Similarly, some insurers cover the belongings of a parent living in a care facility. However, you must hold power of attorney, a mandate, or a court order.

Important: These belongings must not already be insured elsewhere.

8) Certain life changes require updating your policy

Don’t wait until renewal—inform your insurer as soon as possible. Here are some examples of situations you should report:

• You welcome a roommate or family member.
• You now need work from home insurance or self-employed insurance.
• You rent part of your home (e.g., a basement apartment).
• You complete renovations that increase your property value.

Good to know: Adjusting your coverage as your situation evolves helps ensure you remain properly insured. Otherwise, you could be denied compensation after a claim.

9) A cottage is insured differently than a primary residence

How you use your cottage or secondary residence determines the type of home insurance you’ll need. Seasonal home insurance provides basic coverage for those who only use their cottage a few times per year.

More frequent visitors can opt for owner-occupied insurance, which typically requires regular presence and often prohibits commercial rentals.

10) Home insurance policies may have limits for bicycles

Your bicycle and accessories are protected against fire, theft, and vandalism under your home insurance. Coverage also applies:

• if your bike is damaged during transport in a vehicle or on a bike rack; and
• in a collision with a car or another bicycle.

Be sure to check your bike coverage limit and deductible.

Good to know: The amount may be insufficient for an electric bike or high-end bicycle. In that case, contact your insurer to adjust your coverage or obtain specialized bike insurance.

Key takeaways for staying properly protected

Understanding your home insurance gives you everyday peace of mind. For example, some policies include legal assistance services or identity theft protection. One simple call to your insurance company can make all the difference when the unexpected happens.