Cover your assets with the right insurance. You’re not only protecting your home and contents, you’re protecting your financial future and your standard of living. Here are three types of insurance homeowners need to consider.


Many Canadians buy their first home with a downpayment of less than 20 per cent. Known as high-ratio mortgages, these transactions legally require mortgage loan insurance.

The premium on your total loan varies from approximately 0.60 per cent to 3.35 per cent depending on the percentage of loan-to-value (generally the greater your downpayment in relation to home’s cost, the lower the mortgage loan insurance premium). Lenders pay the premium and it’s passed on to you; pay it off as a lump sum or add it to your mortgage for monthly payments. Ask your lender for more details on mortgage insurance from Genworth Canada.

You need it if: You’re a buyer who has put less than 20 per cent down on your home.
Don’t give it another thought if: you don’t have a high-ratio mortgage.


Homeowners’ insurance covers your property and contents against fire, water damage, theft and other forms of damage. Your insurance covers the cost of repairs, replacement, and certain expenses if you have to temporarily move out as a result of damage/repairs. It also protects you if someone gets injured on your property; if you’re liable, home insurance will pay the damages.

Condo insurance is a similar product geared to the specifics of condo ownership (ie. shared common areas and amenities).

The amount of coverage you select, and optional add-ons, will impact how much you pay in premiums.

You need it if: If you own a house, condo (or cottage).
Don’t give it another thought if: You are not a homeowner.


Many first-time buyers help finance their purchase by including a rental unit. If you plan to do this, include a clause in the lease stipulating that tenants must purchase tenants’ insurance (also known as contents insurance). It protects their contents in the event of a break-in, but more importantly to you, as landlord, it covers their liability for property damage caused by their negligence (ie. a fire triggered by a pan left on the stove, flooding caused by an overflowing bathtub). Without insurance, reimbursement costs would come from their pockets—and who wants to take the risk that their tenants may not have those savings on hand?

You need it if: You have tenants (state in the lease it is mandatory). And if you are a tenant reading this article because you are saving for your first home, make sure you are insured, so that an unexpected event doesn’t wipe out your home-saving nest-egg!
Don’t give it another thought if: You do not have tenants and are not a tenant.

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