Most Ontario homeowners sign their insurance policy, file it away, and assume they're covered for just about anything that could go wrong. It's a reasonable assumption — but unfortunately, it's often wrong.

As a RIBO-licensed broker, one of the most difficult conversations I have is telling a client that the damage to their home isn't covered. Not because they did anything wrong — but because they simply didn't know what their policy excluded. These conversations are avoidable. Here are the five most common gaps I see in Ontario home insurance policies.

Gap #1
Overland Water & Flooding
Standard home insurance in Ontario does not cover overland flooding — water that enters your home from outside, such as after heavy rain, a nearby river overflowing, or snowmelt runoff. This surprises a lot of homeowners, especially those who have never made a claim. Overland water coverage is a separate add-on that most insurers now offer, but it has to be specifically requested and added to your policy. If you live near a body of water, in a low-lying area, or in a region prone to heavy rainfall, this coverage is not optional — it's essential.
Gap #2
Sewer Backup
Sewer backup is exactly what it sounds like — wastewater backing up into your home through drains, toilets, or sump pumps. It's one of the most common and most expensive claims in Ontario, particularly during heavy rainfall events when municipal sewer systems get overwhelmed. Like overland water, sewer backup coverage is typically not included in a standard policy. It needs to be added separately. The cost of the add-on is modest. The cost of a sewer backup claim without it — which can run into tens of thousands of dollars — is not.
Gap #3
Home-Based Business Equipment & Liability
If you run a business from home — even part-time — your standard home insurance likely doesn't cover your business equipment, inventory, or any liability arising from clients visiting your property. This gap became especially relevant during and after the pandemic as more Ontarians started working from home or running small businesses out of their houses. If you have business equipment worth more than a few hundred dollars, or if clients ever visit your home, you need to disclose this to your broker. A home-based business endorsement or a separate commercial policy may be required.
Gap #4
Earthquake Damage
Ontario experiences more seismic activity than most people realize — particularly in the Ottawa Valley and along the St. Lawrence corridor. Earthquake coverage is not included in standard home insurance policies anywhere in Canada. It's an optional add-on, and in most parts of Ontario it's relatively affordable given the lower seismic risk compared to BC. Whether you need it depends on where you live, but it's a conversation worth having with your broker — especially if you own an older home that may not be built to modern standards.
Gap #5
Gradual Damage & Maintenance Issues
Home insurance is designed to cover sudden, accidental damage — not gradual deterioration or maintenance problems. If your roof has been leaking slowly for years, if your pipes corrode over time, or if mold develops due to ongoing moisture issues, your insurer is very unlikely to cover the resulting damage. This is one of the most misunderstood aspects of home insurance. The policy expects you to maintain your home. When damage is the result of neglect or gradual wear rather than a sudden event, claims are routinely denied. Regular home maintenance isn't just good practice — it's a condition of your coverage.
Broker's Tip

The best time to review your home insurance isn't after a claim — it's before one. An annual policy review with your broker takes less than 30 minutes and can identify gaps you didn't know you had. If you haven't reviewed your policy in the last 12 months, it's worth a conversation.

What Should You Do?

The first step is knowing what you have. Pull out your policy documents and look for what's explicitly included and excluded. If the language is confusing — and it often is — that's what your broker is for.

The second step is having an honest conversation about your specific situation. Do you have a finished basement? You need sewer backup and overland water coverage. Do you work from home? Your broker needs to know. Have you renovated recently? Your coverage limits may need to be updated to reflect the increased replacement cost of your home.

Insurance isn't a product you buy once and forget. Your life changes, your home changes, and your coverage should keep pace. A good broker will proactively flag gaps at every renewal — not wait for you to ask.

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Chad Kless Insurance Broker
Chad Kless
RIBO-licensed Property & Casualty Insurance Broker at Oracle Insurance Risk Management Services Inc. Serving homeowners, business owners and individuals across Ontario. Reach Chad at (647) 968-7037 or klessinsurance.ca.