Are there flood or fire insurance requirements
in Ontario?
Want the blunt answer? Do you have to buy flood or fire insurance in Ontario? Short version: lenders often require fire coverage; flood coverage is usually optional and often excluded from standard policies — but the risk and cost can force your hand.
The simple legal reality
- Fire insurance: Not a direct provincial legal requirement for homeowners, but mortgage lenders nearly always require a valid fire and all-risk/home insurance policy that names them as loss payee. That protects the lender’s collateral. In practice, if you have a mortgage, you must carry fire coverage.
- Flood insurance: Ontario does not mandate overland flood insurance for homeowners. Standard home policies commonly exclude overland flood (also called overland water or riverine flood). Coverage for sewer backup, overland flood and surface water is often available as endorsements or separate policies.
Why this matters for buyers and sellers
Lenders, not the province, set practical insurance rules. If you’re buying with a mortgage, expect a condition that your policy covers fire and “other perils” the lender specifies. If your property is in a known floodplain or has prior flood claims, insurers can decline coverage, restrict it or charge high premiums.
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What insurance companies and regulators say
- Standard homeowners policies in Canada include fire perils as part of basic coverage.
- Overland flood is usually excluded. Insurance Bureau of Canada (IBC) and major carriers offer endorsements or separate overland flood products for high-risk areas.
- Municipalities and Conservation Authorities enforce land-use rules in floodplains. These rules can restrict building but are separate from insurance requirements.
Practical checklist — what to do now
- Read your mortgage documents: lenders specify required coverage and limits.
- Ask your broker for a quoted policy that names the lender as loss payee and includes desired endorsements (sewer backup, overland flood, sump pump failure).
- Check municipal flood maps and Conservation Authority regulations for your address.
- If you’re in a flood-prone zone, get multiple quotes. Options vary: primary insurer endorsements, excess flood policies, or specialty flood insurers.
- Document prior claims and mitigation measures (sump pumps, backflow valves). This lowers premiums and improves insurer acceptance.
Local expertise matters
This is where a local Insurance & Risk expert makes a difference. I combine frontline market knowledge with mortgage and municipal rules to get policies lenders accept and that actually protect you. If you’re buying, selling, or worried about flood or fire exposure in Ontario, you need advice rooted in local rules and insurance market realities.
Contact for a direct consult: tony@sousasells.ca | 416-477-2620 | https://www.sousasells.ca
Need a policy review or quotes tailored to your property? Call or email. I’ll cut through the noise and get you the coverage you actually need.
