Home insurance Ontario safeguards homeowners against potential financial losses caused by theft, fire, natural disasters, and liability claims. While not legally required, mortgage lenders often require homeowners to have insurance to protect their investment. A standard policy typically covers property damage, personal belongings, and liability in case someone gets injured on the property. Additional coverage options, such as flood protection and sewer backup insurance, can be added based on location and risk factors. Insurance premiums vary depending on the home's location, security features, claims history, and coverage levels. Shopping around and bundling policies can help homeowners save on premiums.