Your lender will not give you the money until you prove the home is insured. This is not optional. It is not something you do after you move in. It has to be ready before closing day.
The myth
I can shop for insurance after I get the keys.
The truth
The lender needs proof of insurance on closing day. If it is not ready, your closing can be delayed — and delays cost money.
What home insurance covers
Home insurance protects the building, your things, and your liability. If a fire happens or someone gets hurt on your property, insurance is what keeps you from losing everything.
- Dwelling coverage — pays to rebuild the home if disaster hits
- Personal property — replaces your furniture, clothes, and electronics
- Liability — protects you if someone is hurt on your property
Replacement cost vs market value
This matters. Market value is what you paid for the home. Replacement cost is what it would cost to rebuild it. In Calgary, those numbers can be very different. Make sure your policy covers replacement cost, not just the purchase price.
Special cases
- Condos: The building has a master policy. You still need personal condo insurance for your unit and belongings.
- Older homes: Knob-and-tube wiring, 60-amp service, or poly-B plumbing can raise your premium or require upgrades.
- Basement suites: If you plan to rent part of the home, tell your insurer. A regular policy may not cover it.
This is general education, not personalized financial or investment advice. Talk to a licensed advisor about your own situation.