Insurance myth or fact?

Some ideas about insurance are half true, and some depend on the policy. Tap a card to see the answer. Everything here is general information, so check your own policy or ask a licensed advisor about your situation.

How to use these

Read the statement, decide what you think, then tap the card to see the answer. A few come out as myth, a few as fact, and many as depends, because the answer changes with the policy, the insurer and the province.

One thing to keep in mind

These answers are general. Policies differ, rules differ by province and territory, and your own situation matters. Your policy documents and a licensed advisor are the places to get answers about your coverage.

The cards, with their answers

“My home insurance covers flooding.” Depends. Many standard home policies do not cover water that comes in from outside, such as overland flooding, unless it is added. Sewer backup is also often a separate add-on. Coverage differs by insurer and province, so read your policy's water wording.
“Life insurance is only for people with kids.” Myth. People think about it for many reasons: a partner who would be affected, a mortgage or other debts, a business, or final expenses. Whether it makes sense depends on your own situation.
“A red car costs more to insure.” Myth. Insurers generally look at things like the vehicle's make and model, your driving record, where you live and how the car is used, not its paint colour.
“My landlord's insurance covers my belongings.” Myth. A landlord's policy typically protects the building, not a tenant's belongings or liability. Tenants often look at their own tenant (renter's) policy. Check your lease and ask your landlord what they cover.
“Making a claim always makes my premium go up.” Depends. It depends on the insurer, the type of claim, who was at fault and your claims history. Some claims affect premiums and some do not, so it is worth asking before you decide whether to claim.
“If something is stolen, my insurer pays what it cost new.” Depends. Some policies pay replacement cost and some pay actual cash value, which is what the item is worth after wear. Deductibles and limits also apply. Your policy shows which one you have.
“My provincial health plan covers me when I travel.” Depends. Provincial plans typically cover little or nothing for care outside the province or country, so costs can be high. People often look at travel insurance for that gap. Read the terms, including any rules about pre-existing conditions.
“Group benefits from work are all I need.” Depends. Workplace benefits can be a good base, but limits differ, and coverage usually ends when you leave the job (some plans offer a way to convert). It is worth knowing exactly what yours covers.
“Disability insurance is only for people in risky jobs.” Myth. Illness or injury can affect anyone's ability to earn, whatever the job. How much protection you might want depends on what your employer already provides and what you would need to cover.
“The cheapest policy is the best deal.” Depends. A lower price can mean higher deductibles, lower limits or fewer covered situations. Comparing what is covered, not only the cost, is a good habit.
“A deductible is the part of a claim I pay myself.” Fact. That is how a deductible generally works: the insurer pays the covered amount above it. Deductibles differ by policy and by type of claim, so check yours.
“A home or tenant policy can cover my belongings, not just the building.” Fact. Home and tenant policies commonly include coverage for belongings, subject to limits and exclusions. Valuable items such as jewellery often have lower limits, so it is worth reading the details.
“I can ask an advisor how they are paid.” Fact. Advisors can be paid in different ways, such as commissions from insurers or fees, and you are free to ask how yours is paid. A clear answer is a good sign.

General information only. Check your own policy or talk to a licensed advisor.

Common questions

Are these answers advice?

No. They are general information in plain language. Your own policy, your insurer and a licensed advisor can tell you what applies to you.

Why do so many answers say it depends?

Insurance varies by insurer, policy, province and territory, and personal situation. A fair answer to many common questions is that it depends, and the card says what it depends on.

More in Guides and checklists

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.