Buying a home usually means several insurance decisions on a deadline. This page explains what lenders typically expect, what people often look at, and what to ask, in plain language.
What a lender usually asks for
Most mortgage lenders require proof of home insurance before they release the money, often a few days before closing. Your lender, lawyer or insurer can tell you what proof they need and by when. Coverage generally needs to be in place from the day you take possession of the home, not the day you move in.
Home insurance: what people look at
Building and contents. The building is the structure. Contents are your belongings. Check whether each is covered at replacement cost (what it costs to rebuild or replace new) or actual cash value (the value after depreciation).
Liability. Covers injury or damage you may be responsible for, including to visitors.
Water. Standard policies usually exclude flooding from outside the home, and sewer backup is often an optional add-on. Ask what is and is not included, and what the deductible is.
Your situation. Tell the insurer if you will rent out a room, work from home or keep valuables. These can change what a policy covers.
In a condominium, the condo corporation usually insures the building and shared areas. You generally insure your belongings, any improvements you make to the unit, and your liability. After a big loss, the corporation can also charge unit owners a share of its deductible, and some unit-owner policies include loss assessment coverage for this. Ask the corporation for a summary of its insurance, and ask your insurer what a unit-owner policy includes.
Mortgage insurance and protecting the mortgage
Two different things share the name "mortgage insurance".
Mortgage default insurance is arranged through the lender when the down payment is small. It protects the lender if payments stop. You pay for it, but it does not protect you or your family.
Life, disability and critical illness insurance are what can help you or your family keep paying the mortgage if you die, cannot work or become seriously ill. Some lenders also offer their own mortgage life insurance. Ask how it works, who it pays, whether the amount falls as the mortgage does, and when the insurer decides whether a claim is accepted.
Title insurance
Title insurance protects against certain problems with ownership of the property. It is separate from home insurance and is often arranged through your real estate lawyer. Ask your lawyer what it covers and what it does not.
A simple order of events
Before you make an offer: ask an insurer how the property looks to them. Older wiring, plumbing or heating, or a roof near the end of its life, can affect whether coverage is offered and on what terms.
When conditions are removed: arrange home insurance so it is in place for possession.
Before closing: send your lender the proof they need, and look at life, disability and critical illness coverage if the mortgage is a worry.
After you move in: tell your insurer about renovations, tenants or a home business.
Lenders generally require it, and the exact requirements are in your mortgage commitment. Ask your lender or lawyer what proof they need and by when.
When should I arrange home insurance?
Often once the conditions on your offer are removed, so it is in place for possession. Some insurers need time to assess the property, so don't leave it to the last day.
Does home insurance pay off my mortgage if I die?
No. Home insurance covers the property and your liability. Life insurance is what can help your family with the mortgage.
What is the difference between mortgage default insurance and life insurance?
Mortgage default insurance protects the lender if you stop paying. Life insurance pays the people you name if you die. They do different jobs.
Do I need separate insurance if I buy a condo?
Usually yes. The condo corporation insures the building and shared areas, and you generally insure your belongings, improvements and liability. Ask both the corporation and your insurer what applies.
General information, not advice or a recommendation. Rules differ by province and by insurer, so confirm with your insurer or a licensed advisor. This page was last checked in November 2026.