If you’re purchasing real estate in Vancouver, whether it’s a condo, townhouse, or detached home, securing the right homeowners insurance is a key step—especially if you're financing the purchase.
What Is Homeowners Insurance and Why Is It Required?
Most mortgage lenders in Vancouver require proof of homeowners insurance before the deal can complete. This protects both you and the lender against damage, loss, or liability. If you’re buying with cash, insurance isn’t mandatory—but it’s still highly recommended to protect your home and the contents inside (furniture, electronics, personal items, etc.).What Impacts the Cost of Homeowners Insurance in Vancouver?
Insurance providers look at several local factors when pricing a policy:- Location of the home (e.g. flood or earthquake zones in Greater Vancouver)
- Age and condition of the property
- Proximity to fire stations or water sources
- Estimated rebuild cost
- Risk factors like older plumbing or electrical systems
- Strata insurance deductible (if you're buying into a townhouse or condo)
Complete Your Due Diligence First
Make sure you’ve reviewed the home inspection report, strata documents (if applicable), and title search. This gives your insurer a clearer picture of the property, helping them price your policy accurately.What’s Covered – and What’s Not
Most homeowners insurance policies in Vancouver cover fire, theft, liability, and water damage—but not all policies are the same. You may need extra coverage for:- Earthquakes (important in Vancouver)
- Flooding, water damage or sewer backup
- Accidents and liability on your property
- High-value items like jewelry or art
- Home businesses
- Updates & renovations