Comprehensive vs broad home insurance in Canada

If you're a first-time homeowner, the world of home insurance coverage can be confusing, especially when it comes to choosing the right coverage for your property. Many Canadian homeowners find themselves torn between broad vs comprehensive home insurance coverage. And unfortunately, the consequences of choosing the wrong one can be costly.

Imagine suffering a major flood only to realize your policy doesn’t cover water damage. Or replacing a stolen laptop out of pocket because it wasn’t included in your policy. Understanding the differences between these two coverages could potentially save you thousands of dollars and give you peace of mind knowing you're properly protected.

This guide breaks down the differences between comprehensive home insurance and broad home insurance policies, when each may make more sense, and how you can make an informed decision about protecting your property. Stick around for more information.

What is home insurance and why it matters

Home insurance is a type of coverage specifically designed to offer homeowners financial protection should your home or personal property be damaged, destroyed, or stolen. Home insurance coverage also includes liability protection in the event someone suffers a bodily injury or their personal belongings are damaged while on the premises of your property. Typical risks covered by home insurance include:

• Wind and hail

• Fire and smoke damage

• Theft and vandalism

• Personal liability claims

• Certain types of water damage (depending on the policy)

Choosing the right insurance is essential, as not all of them provide the same amount of protection. In 2024, the average monthly home insurance cost in Canada was approximately $80, but these insurance premiums will vary greatly depending on the province you live in and other factors. With 228,000 home insurance claims submitted in summer 2024 alone, your policy has to reflect the hazards that could threaten your home and livelihood.

What is comprehensive home insurance coverage?

Comprehensive home insurance, also known as all perils coverage, covers both your home and your personal belongings in the event of a covered loss, except for perils specifically excluded from your policy.

What comprehensive home insurance policies cover

Comprehensive home insurance generally covers:

• Fire and smoke

• Theft and vandalism

• Sudden and accidental water damage

• Falling objects

• Vehicle impact

• Severe weather

Example scenario: Comprehensive coverage

Let's say a fire breaks out in your home and damages the physical structure of your property, along with everything inside your home. Under a comprehensive home insurance policy, you would not only be compensated for the cost of rebuilding your home, but also for replacing the damaged items in your home as well. The only costs you would pay out of pocket are the deductible to your home insurance company, which ranges between $500 and $2,000.

Comprehensive insurance considerations

Because comprehensive home insurance offers a broad form of protection against perils (minus those specifically excluded from your comprehensive insurance policy), comprehensive policies tend to have higher insurance premiums. With home insurance premiums rising by 7.66% across Canada between January 2023 and January 202, purchasing a comprehensive home insurance policy may be worth the investment long-term, especially if you live in an area prone to high crime rates or natural disasters like wildfires, hail, or wind storms.

What is broad home insurance coverage?

Broad home insurance coverage is another option that offers all-risk coverage for the physical structure of your home, but only named perils coverage for your personal belongings. That means your home's structure is well protected, but your contents are protected from only those perils listed in your insurance plan.

What's covered by a broad form insurance policy

Broad home insurance typically covers:

• Physical structure of home, detached garage, other structures: All risks (except certain risks excluded from your policy).

• Personal contents: Only named perils listed in your policy, such as fire, theft, vandalism.

What is not covered by broad home insurance coverage

Commonly excluded by broad home insurance include:

• Accidental damage or loss to your personal property.

• Wear and tear

• Water damage

• Natural disasters

Example of broad policy in action

Let's say a fire breaks out in your kitchen, destroying your hardwood flooring, appliances, and furniture. A broad policy would cover the physical damage to your home and the named perils listed in your policy for your personal belongings. However, if your laptop was damaged by water you used to extinguish the fire and water damage isn’t a named peril in your existing policy, it might not be covered by your insurance provider.

Broad vs comprehensive home insurance: A side-by-side comparison

This side-by-side chart compares broad and comprehensive home insurance, highlighting differences in dwelling and contents coverage, named-perils vs. all-risk protection, exclusions, and cost. Use it to quickly see what each policy covers and choose the level of protection that best fits your home and budget:

Should I choose broad home insurance or comprehensive home insurance?

In 2024, insurance losses from severe weather in Canada reached an all-time high of $8.5 billion, almost doubling the previous year's amount, making your decision between comprehensive home insurance and broad insurance more important than ever as climate change becomes more pressing across the country.

Choosing the right policy comes down to understanding your needs and your home's risk factors. A comprehensive home insurance policy provides the most comprehensive coverage against potential hazards, offering all-risk protection for both the structure of your home and your belongings. It’s ideal for homeowners with high-value items, newer or renovated homes, or those living in areas prone to severe weather events.

On the other hand, a broad home policy may be a better idea for families with fewer valuables or a tighter budget. It still offers protection for the physical structure of your home, but it has limited coverage for its contents, which may mean more of a financial hit if something unexpected happens.

Broad and comprehensive home insurance: Questions to ask yourself

Here are some questions to consider when choosing between Broad and Comprehensive home insurance:

• Do I own expensive collectibles like electronics, jewelry, musical instruments, clothing, or artwork?

• Can I afford to replace everything I own out-of-pocket?

• Do I live in a high-risk area for theft, fire, or severe weather events like flooding or wildfires?

• Am I willing to get a lower premium for limited contents coverage?

If you own expensive items, comprehensive home insurance is the way to go. In contrast, if you need something more affordable for the time being, broad home insurance is a great option to save money. If you're still unsure which route to take, speak with an insurance broker like BrokeLink for more information.

Hypothetical examples for broad and comprehensive home insurance

Below are short scenarios to illustrate how Broad and Comprehensive home insurance respond to different losses. These examples highlight what’s typically covered, what isn’t, and how claim outcomes can differ between the two:

Example 1: Broad home insurance policy

Dave in Nova Scotia opted for broad home insurance. When Hurricane Debby hit in August 2024, the storm surge damaged his basement and belongings. While repairs to his home were covered by his provider, many personal items weren’t, and he was forced to pay $5,000 out of his own pocket to replace his items.

Example 2: Comprehensive home insurance

Emily lives in Calgary and has a comprehensive home insurance plan. Back in 2024, a hailstorm shattered her windows and soaked her living room furniture while she was working. Luckily, her policy covered the window replacements and furniture damage, totalling $18,000 in covered losses. Emily was only responsible for paying her deductible of $500 to her insurance provider.

Can I upgrade my broad policy later?

Absolutely, you can. Most insurers will allow you to switch your broad home insurance to comprehensive coverage when your plan is up for renewal. Make sure to inform your insurance provider or broker that you want to switch to comprehensive home insurance. They'll be able to walk you through the process to ensure you're more confident with your protection.

How can I find affordable home insurance in Canada?

Working with an insurance broker is a great way to find affordable home insurance. Whether you want to buy broad home insurance or comprehensive home insurance, a broker will compare policies to ensure you get a competitive price. They can also unlock discounts, like bundling your home and auto insurance with the same provider, installing a home alarm system or smoke detectors, and more, to ensure you save as much money as possible on your policy.

Is home insurance mandatory in Canada?

Home insurance is not a legal requirement in Canada, meaning it is not mandated by the government anywhere in the country. However, landlords can require tenants to purchase home insurance, and mortgage lenders can require borrowers to purchase home insurance, which means you may be contractually obligated to purchase it. An insurance broker can further explain how mandatory home insurance works in Canada.

Looking for home insurance? Contact BrokerLink today

Every home is different, and so are your insurance needs. Speaking with a BrokerLink insurance broker can help you choose the right coverage, whether you're looking for broad, comprehensive, or additional coverage, including:

• Tenant and renters insurance

• Vacation property & cottage insurance

• Home insurance appliance coverage

• Comprehensive and broad home insurance

• Additional interest home insurance

Contact us over the phone to speak with a broker directly or take advantage of our free online quote tool today!

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Comprehensive and broad home insurance FAQs

Where can I buy broad home insurance?

Broad home insurance can be purchased from most property insurance companies in Canada or through an insurance broker. Broad home insurance can be bought online, over the phone, or in person at an insurance broker’s or agent’s office.

Where can I buy comprehensive home insurance?

Comprehensive home insurance can be purchased from insurance companies or insurance brokers. Reach out to your local insurance broker to learn more.

How do I avoid a fire in my home?

Even if your home insurance policy includes coverage against fires, you still want to avoid a fire breaking out in your home at all costs. Luckily, there are several ways that you can do so, and some of them may even save you money on home insurance. For example, if you install a smart security system in your home that detects smoke, carbon monoxide, and more, you will be notified immediately in the event of a fire. Plus, depending on the type of security system installed, you could be eligible for a home insurance discount. Other fire safety tips include purchasing a fire extinguisher for your home, replacing the batteries on your smoke detectors regularly, having your chimney and HVAC units maintained and inspected annually, never lighting candles and leaving them unattended, and never plugging in too many appliances into one electrical outlet.

How do I get a broad home insurance quote?

Customers can get broad or comprehensive home insurance quotes by reaching out to their local insurance broker. Insurance brokers offer home insurance quotes for free and they can be provided in a matter of minutes.

If you have any questions, contact one of our local branches.