Insurance
Building insurance protects the structure of a home, while home insurance adds coverage for personal property, liability, and extra risks. Choosing the right policy depends on whether you own, rent, or lease, and what kind of financial protection you need.
Choosing the right home insurance isn’t just about checking a box. It’s about knowing exactly what’s covered—and what isn’t—when things go wrong. That’s why understanding the difference between building insurance and home insurance matters. One protects the structure. The other goes further and covers everything you live with inside.
For most homeowners, both are necessary. A mortgage lender will usually require building insurance before final approval. But that only covers the walls, roof, and permanent fixtures. It won’t pay to replace your clothes, laptop, or sofa after a fire. That’s where contents coverage comes in, often as part of a full home insurance policy.
What you need depends on how you use the property. Do you live in it full-time? Is it a rental? Do you own it or rent a room? Each setup carries different risks, and each type of insurance fills a different gap.
Building insurance protects the structure of your property from events like fire, wind, hail, and vandalism. It includes things physically attached to the house—walls, roof, windows, floors, and built-in features like cabinets or bathtubs.
It also typically covers other structures on your property, such as detached garages, tool sheds, and fences. The value of coverage is based on the cost to rebuild the home—not the market value. That means using current material and labour costs to calculate your rebuild estimate.
Home insurance is more comprehensive. It usually includes building insurance, but adds coverage for personal belongings and liability. That means it protects your furniture, electronics, clothes, appliances, and more from fire damage, theft, or other covered incidents.
Insurely’s home insurance policies include contents coverage, liability protection, voluntary medical payments, and additional living expenses. If your home becomes uninhabitable due to an insured event, this helps cover temporary housing and daily costs.
This type of insurance is designed to protect everything that makes your house livable—your personal space, your belongings, and your financial well-being.
If you’re a homeowner with a mortgage, building insurance is required by your lender. But even if you own your home outright, protecting the structure is still important.
If you rent, you don’t need building insurance. That’s your landlord’s job. But you do need tenant insurance to protect your belongings and provide liability coverage. Insurely offers renter’s insurance with contents and liability coverage designed for tenants in rental properties.
Landlords, on the other hand, need insurance that covers the rental property structure. If the property is furnished, additional coverage for landlord contents may be useful. Insurely offers options like tenant vandalism protection and lost rental income coverage as add-ons.
Significant damage can happen fast. A kitchen fire. A broken pipe. A major windstorm. If you’re not insured, replacing or repairing that damage comes out of your pocket.
Insurance protects against unexpected costs that can disrupt your life and finances. Fire damage alone can result in thousands of dollars in losses. If you rely on contents coverage and liability insurance, you reduce the financial impact dramatically.
Many people mistakenly believe building insurance covers everything. But without a full home insurance policy—including personal property and liability—key losses may not be covered.
The right amount of building insurance is based on the full cost to rebuild your home, including demolition, cleanup, materials, and labour.
Contents coverage should reflect the value of everything you’d want to replace after a loss—furniture, electronics, clothing, appliances, and more. Insurely allows you to adjust coverage limits and deductibles to fit your needs. You can manage all your coverage options online, without calling anyone.
Insurely offers important optional coverage, including:
Each policy can be adjusted based on your needs. It’s important to review your policy wordings and select the coverages that reflect your property and risks.
Your insurer will calculate the rebuild cost based on materials, labour, and debris removal. This is usually less than the home’s market value but enough to fully rebuild if needed.
Homeowners insurance typically includes structure, contents, and liability coverage. Property insurance is a broader term that can include buildings not used as primary residences, like rentals.
No. It only protects the structure and fixed parts of the home. To protect belongings, you need contents insurance or a comprehensive home insurance policy.
Comprehensive coverage usually protects the structure, personal property, liability, and temporary accommodations. It may also include optional coverages like sewer backup or identity theft.
No, not all insurance providers offer both. Insurely is a licensed Canadian insurance company that provides comprehensive building and home insurance coverage, including personal property and liability.
Landlord building insurance covers the structure of the rental property, including walls, roof, and permanent fixtures. Insurely also offers add-ons for lost rental income and tenant vandalism protection.
Yes, Insurely includes personal property coverage in its home insurance policies to protect items like electronics, furniture, and clothing. Many insurance providers separate building insurance coverage from contents, but Insurely combines them for complete protection.
Disclaimer: This blog post is for general information only and does not constitute personalized advice. Please consult a licensed insurance broker to determine the insurance solution that best fits your specific needs.
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