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Newfoundland and Labrador is home to more than 500,000 residents and more than 250,000 private dwellings. While home insurance is not legally mandated in Newfoundland and Labrador, the majority of banks and lenders insist that mortgaged homes are covered by a policy, making home insurance practically a prerequisite for homeownership. And when you consider that owning a home is the single largest investment that most people in Newfoundland and Labrador will ever make, it’s no wonder home insurance is a must-have.
So, where should homeowners in Newfoundland and Labrador look for home insurance? With numerous providers offering a range of policies and rates, it’s critical that customers shop around before buying. Luckily, LowestRates.ca helps you do just that. By comparing the home insurance market for you — and by connecting you with qualified brokers — you’re sure to get the protection you need for the home you love.
Follow along as we answer some common questions about home insurance in Newfoundland and Labrador.
Your home insurance policy will be customized to suit your needs and the property you’re insuring.
Home insurance premiums are determined by dwelling type (is it a single-detached home, a house with a basement tenant suite, or a condo?). Insurance companies also try to predict the kind and size of claim you might make in the future.
Here are some of the criteria insurance companies look at when calculating your premium.
Home insurance exists to protect your home and its contents against the unexpected, including fire and smoke damage, vandalism, break-ins, falling objects, vehicle impact, civil unrest, and some natural disasters. It also covers policyholders if a person is injured while on their insured property, or if they inadvertently cause damage to someone else’s property. The majority of home insurance policies in Newfoundland and Labrador also cover standalone structures on the property, such as sheds or garages. The premiums paid into home insurance policies cover the cost to fix the damage caused by pre-determined perils.
Home insurance is not based on the market value of a home; rather, it’s based on the cost to replace a home. For example, if your home would cost $200,000 to completely rebuild — even if it would sell for $300,000 — a home insurance provider would pay out $200,000 in the event of a total (and covered) loss. Thus, when determining home insurance premiums in Newfoundland and Labrador, insurers look at replacement cost, not market value.
Here are some factors that could impact home insurance premiums in Newfoundland and Labrador:
Newfoundland and Labrador is a coastal province and faces a range of adverse weather conditions. Here’s a look at some of the province’s biggest threats to homes and properties.
While many aspects of purchasing and holding home insurance are consistent across Canada, Newfoundland and Labrador is the sole province to ban insurance providers from using credit scores as a factor when determining home insurance premiums. So even if your credit history is not where you’d like it to be, you can shop for home insurance with the confidence of knowing your premium will not be impacted.
Homeowners in Newfoundland and Labrador have different types of home insurance to choose from:
Comprehensive or All Perils - This is the most costly and most thorough type of home insurance available in Newfoundland and Labrador. Comprehensive home insurance covers the home and its contents against all perils and losses, excluding those which are explicitly left out. ‘Uninsurable perils,’ such as water damage, insect damage, and natural disasters (e.g. earthquakes), and ‘optional coverage’ (e.g. sewer backup) are not typically included in this coverage.
Basic or Named Perils - This type of coverage protects your home and its contents against specifically identified risks. It is less costly than comprehensive home insurance, but it leaves the homeowner exposed to a wider range of property damage.
Broad - This policy lies somewhere in-between basic and comprehensive insurance. It covers dwellings from most perils but only covers the contents from perils that are specifically named.
No-Frills - This home insurance coverage protects properties that do not meet conventional underwriting standards. Ask your broker if ‘no frills’ home insurance is a good option for you.
Property and casualty (P&C) insurance in Newfoundland and Labrador is regulated by the Financial Services Regulation Division (FSRD) of Service NL, a department of the provincial government of Newfoundland and Labrador. The FSRD oversees Newfoundland and Labrador’s insurance industry and regulates rates in the province. Additionally, the FSRD protects consumers through financial education efforts and fraud prevention awareness.
If you’ve had a claim denied and you wish to appeal the decision, you can file a written complaint to the Office of the Superintendent of Insurance. However, it’s recommended you bring your complaint to the insurance company’s ombudsperson before escalating it to the provincial level.
Here are a few ways to save on home insurance in Newfoundland and Labrador:
Homeowners in Newfoundland and Labrador can choose between many home insurance providers, each offering unique features, coverages, and rates. Because it’s difficult to say which company is the best fit for most consumers, it’s critical that homeowners compare their options. Here are a few of the major home insurance companies in Newfoundland and Labrador:
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*Shoppers who obtained a property quote on LowestRates.ca from January to December 2023 saved an average of 32%. The average savings percentage represents the difference between the shoppers’ average lowest quoted premium and the average of the second and third lowest quoted premiums generated by LowestRates.ca. Excludes tenant and condo insurance.