How to get homeowners' insurance after being dropped in Canada

Getting dropped by your homeowners' insurance company can be both stressful and confusing. If this happens to you, don't panic. You’re not alone, and you still have options. In fact, with climate risks and rising claim costs, more Canadians are finding themselves in the same boat.

According to Canadian Newswire, insurable losses from severe weather events have jumped 379% over the past decade compared to the 30-year average. On top of that, ALE Management Solutions reports that about 80% of Canadian homeowners are underinsured, which only adds to the problem.

So, what do you do if your home insurance gets cancelled? From figuring out why you were dropped to finding a new policy that fits, this guide will walk you through it. Whether it’s improving your home’s risk profile, exploring specialty insurers, or working with a broker, there are steps you can take to get back on track.

Why was I dropped by my homeowners' insurance company?

If your home insurance company suddenly dropped you, it’s natural to feel frustrated and maybe even confused. But there’s always a reason, even if it’s not obvious at first.

That's why the Insurance Bureau of Canada (IBC) says it's important to know how to read and understand your policy. Every insurance policy comes with insurance requirements, known as policy conditions, that an insured individual must follow. IBC states that if they break or fail to observe a policy condition, insurance companies may choose to cancel their policy. Here are some of the most common reasons why an insurance company may drop you:

Non-payment

Non-payment is one of the top reasons policies get cancelled. Even one missed payment can trigger a notice of cancellation, especially if it happens more than once. Setting up auto-pay or reminders can help avoid this.

Insurance fraud or misrepresentation

If an insurance company finds out that you weren’t honest during the application or claims process, they may cancel your policy outright. For example, if you tell them you live in the home full-time when the property is actually vacant.

Nondisclosure

Even if you didn’t intend to mislead, failing to share important information can be seen as nondisclosure, giving your insurance company legal grounds to cancel. For example, if you run a business out of your home and don't tell your insurance provider.

Change in risk

Insurance companies regularly reassess your risk. And with extreme weather events happening more often, it's making it harder and riskier for insurance providers to cover Canadian homes. The IBC reported that 2024 saw $8.5 billion in insured damages due to weather-related losses, making it the costliest year yet in Canadian history. So, if your insurer considers your home riskier than when they first issued your policy, they may decide not to renew your policy.

Too many claims

Filing too many insurance claims can raise red flags for insurance companies. Every time you file a home insurance claim, it costs your insurer money. The more they have to pay out on your behalf, the riskier you appear as a customer. Even if the claims are legitimate, your insurance provider may decide you’re no longer worth the risk and not renew your policy when it expires.

Immediate steps to take after a policy cancellation

If you receive a cancellation notice in the mail from your home insurance company, here's what you need to do:

1. Contact your insurance company

Your first step should be to call your insurance company. There might be a simple fix, depending on why your policy was cancelled. Even if the notice seemed final, it’s worth getting the full story. They’re required to tell you why they dropped your coverage, so make sure to ask for specifics.

2. See if you can reinstate your policy

Before you start searching for a new insurance provider, ask if there’s any way to keep your current coverage. In some cases, it’s just a matter of paying a missed bill. If you act fast, they might be willing to reinstate your policy.

3. Fix the issue that caused the cancellation

Once you know what went wrong, try to fix it. If it was non-payment, catch up on what you owe. If it were something like undisclosed renovations, provide the missing details. The sooner you address it, the better your chances are of having your policy reinstated.

4. Start shopping around for a new homeowners' insurance policy

If your current insurance provider refuses to reinstate your policy, it’s time to look for a new one. Be upfront about your cancellation when applying, as the other insurance providers will find out anyway, and honesty can help you get matched with the right provider. High-risk providers or insurance brokers can be especially helpful in these situations.

What are my options if I'm denied coverage again?

Being denied home insurance once is tough, and getting turned down again can feel even more overwhelming. Still, you’re not out of options just yet. If traditional insurance companies say no, it’s time to look into high-risk insurance providers or alternative options. Your options after a second coverage denial:

Look into high-risk homeowners' insurance

If traditional insurance companies won’t cover you, consider providers that specialize in high-risk or non-standard home insurance. These companies are designed to take on customers who don’t meet the usual criteria, whether that’s due to a history of claims, missed payments, poor credit, or owning a property that’s considered higher risk, like an older home or one in a flood-prone area.

And while yes, your premiums will be higher, this type of coverage can help keep you protected while you work on rebuilding your insurance profile. Over time, maintaining a claim-free history and keeping up with payments can improve your standing and open doors to standard coverage again.

Look into a named-perils policy

Instead of high-risk coverage, you could try looking into a named-peril insurance policy. These offer limited protection for only the specific risks named in your policy, such as fire, smoke, theft, or wind damage, which means they can sometimes be easier to qualify for than more comprehensive home insurance policies. While the coverage is limited, it can still help protect your home until you're eligible for standard insurance again.

Work with an insurance broker

An experienced broker can be a huge help in these situations. They know which Canadian insurance companies are willing to take on high-risk clients and can advocate on your behalf.

Focus on making yourself insurable

As you move forward, look for ways to reduce your perceived risk, like upgrading your roof, installing safety upgrades, and maintaining your home. Reducing your risk can help you work toward getting back into the standard insurance market.

Start an emergency fund

Finally, while an emergency fund won’t replace full home insurance, it can provide a financial cushion for smaller issues like minor home repairs or unexpected maintenance. Having savings set aside can help you avoid going into debt while you work toward qualifying for better insurance coverage.

How to find high-risk insurance providers in Canada

If you've been denied home insurance by a standard provider, your next step is to look for a high-risk insurance company. These providers specialize in covering people and properties that fall outside the usual guidelines. While premiums are often higher, the coverage is designed to protect homeowners who’ve had trouble getting insured elsewhere. Here’s how to find high-risk insurance providers in Canada:

Start with an insurance broker

Your best first move is to contact a local, independent insurance broker. Unlike insurance agents who work for a single company, brokers have access to a wide network of insurance providers, including those that offer high-risk or non-standard home insurance. They’ll help assess your situation and connect you with companies more willing to work with higher-risk clients.

Search for specialty insurers

Some Canadian companies focus specifically on high-risk or non-standard insurance. These providers often serve homeowners with unique properties, multiple claims, payment issues, or other underwriting concerns. You likely won’t find these insurance providers advertising on TV or comparison sites, but a broker or some online research can help you discover them.

Check with your provincial insurance regulator

Each province or territory has a regulatory body that oversees insurance providers, such as the Financial Services Regulatory Authority (FRSA) of Ontario. In some cases, they can offer lists of licensed insurance companies or refer you to assistance programs if you’re struggling to find coverage.

How to mitigate risk factors so that you can qualify for insurance again

Once you’ve been denied home insurance, the best way to get back into the standard insurance market is to show insurance companies that you’re no longer a high-risk customer. While this takes time and effort, there are several ways for you to help improve your chances of qualifying again:

1. Catch up on missed payments

If your policy was cancelled for non-payment, make it a priority to settle any outstanding balances, even with a previous insurer. This shows financial responsibility and may help repair your insurance record.

2. Reduce your claim risk

Too many claims, especially for water or fire damage or theft, can make insurance companies wary. Instead, invest in preventative measures to help mitigate these risks, such as:

• Sump pumps

• Backwater valves

• Monitored alarm systems

• Modern smoke detectors

• Updated electrical systems

• A new roof

These upgrades lower the chance of future claims and can even qualify you for insurance discounts.

3. Disclose everything

Whether it’s a basement rental or a home-based business, make sure you’re fully transparent when applying for insurance. Remember, nondisclosure, even if unintentional, can lead to cancellations and make it harder to find coverage later.

4. Improve your credit score

In many provinces, credit history is a factor in underwriting decisions. By paying your bills on time and reducing your debt, you can make yourself appear more reliable to insurance companies.

5. Maintain your home

Insurers look for signs that you take care of your property, so regular home maintenance can make a big difference, especially if the insurance company sends someone out to inspect your home. Make sure you're:

• Fixing lost or loose roof shingles

• Cleaning out your gutters

• Repairing cracked foundations

• Replacing old wiring

• Trimming overgrown tree branches

• Testing smoke and carbon monoxide detectors

• Inspecting your HVAC and plumbing systems

6. Stay claim-free

If you're currently insured under a high-risk policy, try to avoid filing any minor claims by paying for the repairs out of pocket, unless absolutely necessary. A clean claims history over time is one of the best ways to get back into the standard market. If insurance providers see that you're less likely to file a claim, that lowers your risk.

How an insurance broker can help you find high-risk coverage

If you’ve been denied home insurance, working with an experienced insurance broker, like BrokerLink, can make all the difference. Unlike agents who work for a single insurer, our brokers partner with multiple insurance companies and can shop around on your behalf, including those that specialize in high-risk coverage.

Did you know that some high-risk insurance providers don’t advertise directly to consumers, and many only accept clients through licensed brokers? That means a BrokerLink broker can give you access to options you wouldn’t find on your own. We’ll also help you understand why you were denied in the first place and offer advice on how to improve your insurability moving forward.

Learn more about home insurance from BrokerLink

Are you struggling to get home or tenant insurance in Canada? Contact BrokerLink. We love helping people find solutions, even when standard insurers say no. Thanks to our wide network of trusted Canadian insurance providers, we can match you with coverage that fits your needs and your budget. Our expert insurance advisors are here to make the process easier and connect you with the protection your home deserves, no matter your situation.

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