Basic home insurance includes coverage for the contents of the home as well as the structure itself. Home insurance is equally as important as car insurance when it comes to protecting yourself financially, as losses to a home worth hundreds of thousands of dollars could mean bankruptcy. Damage from extreme weather events or fire are covered, as well as liability coverage for any accidents that may occur on your property.

Canadian banks usually require people taking out mortgages to show proof of home insurance before they let you borrow—because the bank technically owns the house, they want to make sure their asset is completely protected