Is Home Insurance Mandatory in B.C.? Why You Should Get It

August 25, 2025

Owning a home is one of life’s biggest milestones. Protecting that investment with home insurance is a top priority for most homeowners.

Is home insurance mandatory in British Columbia? The short answer is no — at least not by law. However, if you’re like most Canadian homeowners and have a mortgage, your lender will require you to carry home insurance. Even if your mortgage is paid off, going without insurance is a significant financial risk.

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Is home insurance required by law in B.C. or the rest of Canada?

No. There is no provincial or federal law in Canada that forces homeowners to carry home insurance. You can legally own a home without insurance if you are not financing it with a mortgage.

That said, mortgage lenders require home insurance as a condition of the loan. Until the mortgage is fully paid off, you must maintain an active policy that protects both your home and the lender’s financial interest.

Why mortgage lenders require insurance

Lenders have a financial stake in your British Columbia home. If a major loss such as a fire or flood occurs and no home insurance policy is in place, the lender risks losing the value of the loan.

If your insurance lapses, some lenders may arrange a force-placed insurance policy on your behalf. These policies are typically more expensive and usually protect only the lender — not your belongings or personal liability. Maintaining your own coverage is almost always the better option.

The risks of going without B.C. home insurance

Even if you own your home outright, choosing not to carry B.C. home insurance leaves you exposed to serious financial risks:

• Damage to your home: Fires, burst pipes, windstorms, and hail can result in repair costs reaching tens or hundreds of thousands of dollars.
• Loss of belongings: Replacing furniture, electronics, clothing, and appliances out of pocket can be overwhelming.
• Liability claims: If someone is injured on your property, you could be held legally responsible without liability coverage.
• Temporary living expenses: Insurance can help pay for hotels, meals, and rentals if your home is unlivable after a covered loss.
• Building code upgrades: Older homes may require costly upgrades after a rebuild, which insurance can help cover.

What does B.C. home insurance cover?

A standard home insurance policy includes several key types of protection:

• Dwelling coverage: Protects the physical structure of your home, including walls, roof, foundation, and attached garages.
• Personal belongings: Covers furniture, clothing, electronics, and other possessions against risks like fire, theft, and vandalism.
• Liability protection: Helps cover medical costs, legal fees, and settlements if you’re found responsible for injury or property damage.
• Additional living expenses: Pays for temporary accommodation and related costs if you must leave your home due to a covered claim.
• Detached structures: Sheds, fences, and detached garages are usually covered up to set limits.
• Optional coverages: Endorsements may be added for risks such as overland flooding, sewer backup, or earthquakes.

Homeowners in British Columbia can customize their home insurance coverage. Working with an insurance professional ensures your policy reflects your home, location, and lifestyle.

To sum it all up

Home insurance in British Columbia may not be legally required, but it is commonly required by lenders and strongly recommended by professionals. Whether you live in a condo, townhouse, or detached home — in the city or rural areas — the right coverage provides financial protection and peace of mind when the unexpected happens.

Top 5 FAQs about home insurance

Is home insurance required by law in British Columbia?

No. Home insurance is not legally required anywhere in Canada, but mortgage lenders will require it before approving a loan.

What happens if I don’t have home insurance in B.C.?

If you own your home outright, you won’t face legal penalties, but you assume full financial risk. If you have a mortgage and your insurance lapses, your lender may arrange a costly force-placed policy.

How much does home insurance typically cost?

Premiums vary by location, home value, building age, and coverage options. On average, Canadians pay between $800 and $1,200 annually, though costs may be higher in flood- or earthquake-prone regions.

Is strata or renters insurance the same as home insurance?

No. Condo and renters insurance cover contents and liability, but not the building itself. Homeowners insurance protects the structure, land, contents, and liability associated with owning a home.

Can I switch B.C. home insurance providers if I find a better rate?

Yes. You can change providers at any time. Just ensure your new policy is active before cancelling your existing coverage to avoid gaps.