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 is a top priority for most homeowners.

Is home insurance mandatory in British Columbia? The short answer is no, at least not legally. But if you’re like most Canadian homeowners, you’re probably carrying a mortgage. In that case, your lender will require you to have home insurance. And even if you’ve paid off your home, going without insurance is a risky move that could leave you financially at risk.

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

No, there’s no provincial or federal law in Canada that forces homeowners to carry home insurance. You could technically own a home without any insurance at all, provided you’re not financing it through a mortgage.

But here’s the catch: mortgage lenders require home insurance as a condition of the loan. Until the mortgage is fully paid off, you’ll be required to maintain an active home insurance policy that names your lender as the beneficiary in case of a major loss like fire, flood, or structural damage.

Why mortgage lenders require insurance

Your lender has a financial stake in your B.C. home. If your home burns down or floods and there’s no insurance in place, the lender risks losing the entire value of the loan. By requiring insurance, they ensure that the money they’ve lent you is protected, even in the worst-case scenario.

In some cases, if your insurance lapses or is cancelled, the lender may step in and take out a “force-placed” policy on your behalf. These are usually more expensive and only protect the lender’s interest, not your personal belongings or personal liability. That’s why keeping your own house insurance coverage up to date is always in your best interest.

The risks of going without B.C. home insurance

Even if you own your home outright, skipping insurance leaves you vulnerable to these risks:

• Damage to your home: Fires, burst pipes, hailstorms, or wind damage can lead to repair bills in the tens or hundreds of thousands of dollars. Without insurance, that’s all on you.
• Loss of belongings: Imagine replacing everything in your home—from electronics and furniture to clothing and appliances—on your own dime.
• Liability claims: If someone is injured on your property, you could be held legally responsible. Home insurance typically includes liability coverage to protect you in these situations.
• Temporary living expenses: If your home becomes uninhabitable, insurance can cover hotel stays, meals, and rentals while it’s being repaired.
• Building code compliance: Older homes often need upgrades to meet current building codes after a rebuild. Insurance can help cover those costs.

What does B.C. home insurance cover?

A typical home insurance policy includes several key protections:

• Dwelling coverage: This protects the physical structure of your home, including the roof, walls, foundation, and attached structures like garages.
• Personal belongings: Your furniture, clothing, electronics, and other possessions are protected from events like fire, theft, and vandalism. Some policies also cover belongings when they’re temporarily outside your home, like on vacation.
• Liability protection: If someone is injured on your property or if you accidentally cause damage to someone else’s property, your insurance helps cover medical bills, legal fees, and settlement costs.
• Additional living expenses: If a covered claim forces you out of your home temporarily, insurance will help pay for a place to stay and related costs.
• Detached structures: Sheds, fences, and detached garages are typically covered up to a certain limit.
• Optional coverages: You can also add coverage for events not included in standard policies, such as overland water (flooding), sewer backup, and earthquakes, depending on where you live in Canada.

Homeowners in British Columbia can customize their policies. It’s important to work with your insurance provider to ensure you have the right coverage for your situation.

To sum it all up

Home insurance in British Columbia is often required by lenders and always recommended by professionals. Whether you live in the city or the countryside, whether you’re in a condo, a townhouse, or a detached home, having the right insurance gives you financial protection, peace of mind, and stability when life throws the unexpected your way.

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. However, mortgage lenders will make it a requirement before finalizing a loan.

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

If you own your home outright, you won’t be penalized by the government, but you take on 100% of the financial risk if something happens. If you still have a mortgage and your insurance lapses, your lender could put a more expensive policy in place and charge you for it.

How much does home insurance typically cost?

Home insurance premiums vary depending on your location, the value of your home, the age of the building, and your coverage selections. On average, Canadians pay between $800 and $1,200 per year for home insurance. Homes in flood- or earthquake-prone regions may pay more.

Is strata insurance or renters insurance the same as home insurance?

Not quite. Condo/strata insurance covers your individual unit, contents, and liability, but not the building itself. Renters insurance only covers your personal belongings and liability. Homeowners insurance, on the other hand, protects the full structure and land you own.

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

Yes. You can change home insurance providers at any time. Just make sure you avoid a coverage gap by setting up your new policy before cancelling the old one. If you’re switching mid-term, you may need to pay a cancellation fee, but the savings could still outweigh the cost.