Aug 5, 2026
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Buying a home comes with no shortage of decisions to make, from securing a mortgage to arranging a home inspection and more. But one important step often gets pushed to the end of the process: home insurance.
According to new research from TD Insurance and REALTOR.ca, only one in four Canadians review their home insurance policy each year. Experts stress that many buyers aren’t thinking seriously about coverage until they’re close to taking possession of their new home, and that could come at a cost.
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“Home insurance is a critical part of protecting one of the biggest investments Canadians will ever make, but it shouldn’t be something people think about at the last minute,” said Steve Laurin, vice-president of Affinity Market Group at TD Insurance, in a statement.
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Insurance is becoming a bigger part of the homeownership equation
For most buyers, home insurance isn’t optional. Mortgage lenders typically require proof of coverage before closing, and leaving it until the last minute can leave homeowners with little time to actually compare policies or understand what’s covered.
It’s also becoming a more significant household expense. According to the Insurance Bureau of Canada, insured losses from severe weather topped $2.4 billion in 2025, marking the country’s tenth costliest year on record. Two decades ago, annual insured losses rarely exceeded $500 million, while losses of more than $1 billion have now become the norm.
Those rising claims, combined with higher rebuilding costs, have contributed to increasing pressure on home insurance premiums in many parts of the country.
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What homebuyers should look for before closing
While price is important, experts say buyers should also understand exactly what their policy covers.
That includes checking whether protection for risks such as overland flooding or sewer backup is included or available as optional coverage, understanding the deductible you’ll pay if you need to make a claim, and comparing more than one quote before making a decision.
Starting the process early can also make budgeting easier. Insurance premiums vary depending on factors including the home’s location, age, construction type and claims history.
Home insurance may not be the most exciting part of buying a home, but it’s not one you’ll want to leave until the last minute. Plus, taking time to understand your coverage before closing can help protect one of the biggest financial investments you’ll ever make.
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Steven Brennan is a freelance finance writer based in Vancouver, BC. He holds a BA and an MA from Maynooth University, Ireland. His work regularly appears at Canadian Mortgage Trends, Lowest Rates, Loans Canada and other Canadian and US brands, while also working as a ghostwriter for financial influencers.
