High-risk home insurance is coverage for a home that standard insurers decline or won't renew. The usual triggers are past claims, older wiring or heating, an old roof, long vacancies, flood exposure or business use. This guide covers the 10 common decline reasons, what insurers ask for, who insures these homes and the fixes that reopen standard markets.
What is high-risk home insurance?
High-risk home insurance covers homes that fall outside a standard insurer's underwriting rules. A home can tip into high-risk because of claims history, its wiring, plumbing, roof or heating, vacancy, flood exposure or how it's used. Coverage then comes from specialty and non-standard insurers, often with conditions such as an inspection or a repair deadline.
Insurers price a home on how likely a claim is and what it would cost. The Insurance Bureau of Canada (IBC) lists what they weigh: rebuild cost, location, maintenance and claims history. Past claims are often an insurer's strongest predictor of future claims. Insurers generally prefer roofs updated within the last 20 years, and wood-burning appliances affect both the availability and affordability of coverage.
Home insurance isn't required by law, but IBC notes that most mortgage lenders require it and want proof of coverage. So if you can't get home insurance, act quickly. A decline from one company isn't the market's final word: in April 2025, IBC reported that 101 of the 172 insurers competing in Canada offered home insurance.
The 10 most common reasons homes get declined
The table sums up why insurers hesitate, what they usually ask you for and the fix that most often helps. It's general information as of October 2026. Each insurer sets its own rules, and some will accept a home that others decline.
| Decline reason | Why insurers hesitate | What they usually ask for | The usual fix |
|---|---|---|---|
| 1. Several recent claims | Past claims are a strong predictor of future claims | Date, cause and cost of each claim, and proof of repairs | Fix the cause, raise the deductible, save claims for large losses |
| 2. Knob-and-tube or older wiring | Higher risk of fire and electric shock | An inspection by a licensed electrician; in Ontario, possibly an ESA certificate | Rewire, or upgrade the panel and service |
| 3. Old oil tank | A leak can damage the home and the land around it | Tank age, material, location and installation records | Replace or remove the tank, or switch fuels |
| 4. Wood stove or wood heat | Fire and carbon monoxide risk if poorly installed or maintained | An inspection of the installation | Have it inspected, then maintain and service it |
| 5. Roof near the end of its life | Leaks and wind damage; worn roofs may not be covered | Roof age and the replacement invoice | Replace the roof and send the invoice |
| 6. Vacancy or long absences | Problems go unnoticed when no one is home | Dates away and who checks the home | Arrange regular checks, or buy vacancy coverage |
| 7. High-risk flood area | Overland water losses are concentrated in a few areas | Address, past water claims, backwater valve and sump pump | Install protection devices; compare private flood options |
| 8. Short-term rental use | Guests change the risk; standard policies may not cover it | How often you rent, and whether you live there | Add a short-term rental endorsement or policy |
| 9. Business use at home | Personal policies give little or no cover for business risks | What the business does, equipment and client visits | Add home-based business coverage |
| 10. Unrepaired damage | An existing problem can turn into a larger claim | Contractor quotes or proof of repair | Complete the repair before applying |
Instasure summary of common underwriting questions, October 2026. General information, not an underwriting guide.
Wiring, plumbing and heating
IBC's guide to older homes says knob-and-tube wiring has no ground wire and may increase the risk of fire and shock. In Ontario, the Electrical Safety Authority (ESA) recommends an assessment by a Licensed Electrical Contractor, and you should tell your insurer. For homes built from the 1960s to the 1990s, insurers may require an ESA certificate.
IBC's heritage property guide adds that some insurers won't cover knob-and-tube wiring, others allow time to remove it, and others insure only after a safety inspection. Replacing corroding galvanized pipes with copper or plastic can also lower your cost.
On oil tanks in Ontario, the Technical Standards and Safety Authority (TSSA) says there's no set age for replacing an approved aboveground tank, provided it isn't leaking. Insurer rules are separate, so ask each one.
Vacancy, rentals and business use
According to IBC, most home policies keep protecting your home while you're away. The key exception is a home left unoccupied for more than 30 days: tell your insurer first, and expect conditions such as someone checking the home.
Renting out the home changes the risk too. IBC warns that if you don't disclose a short-term rental and a fire or other accident happens, your policy could be voided. See our short-term rental insurance page. If you run a business from home, home-based business insurance fills the gap a personal policy leaves.
Specialty and non-standard home insurance: how it differs
Specialty home insurance, also called non-standard home insurance in Canada, comes from insurers that write harder risks. The policy may look standard, but the terms often differ:
- Narrower coverage. Some homes are offered named-perils coverage, which covers only the listed perils, instead of all-risks coverage.
- Conditions. Expect an inspection, or a deadline to rewire, replace a roof or remove a tank.
- Higher deductibles or exclusions for the peril behind the concern, such as water.
Disclose everything on the application. As IBC's short-term rental warning shows, an undisclosed change can put the whole policy at risk.
What high-risk coverage costs and excludes
Specialty insurers price high-risk home insurance case by case, and Instasure's engine doesn't model their prices. What our model can show is how the standard market reacts to two common triggers: claims and age. Each row changes one thing from the example profile.
| Ontario example profile | Typical monthly estimate | Monthly range |
|---|---|---|
| No past claims, built 2000 | $133 | $107 to $165 |
| One past claim | $167 | $133 to $207 |
| Two past claims | $208 | $167 to $258 |
| Built in 1950, no claims | $163 | $130 to $202 |
| Built in 1950, one past claim | $203 | $163 to $252 |
| One past claim, $5,000 deductible | $133 | $107 to $165 |
Instasure estimates for an example profile (Ontario house, $500,000 rebuild cost, $1,000 deductible unless shown, water endorsements, $2 million liability), as of October 2026. Modelled figures for standard insurers, not quotes and not averages. Specialty insurers price case by case.
So home insurance after multiple claims can cost much more, even before a home leaves the standard market. In the model, a higher deductible offsets the effect of one claim. Look at exclusions as closely as price. IBC notes that if a worn-out roof leaks, interior damage may be covered but the roof itself would not be.
Flood zones
Flood insurance in Canada is far more available than it was. IBC's 2026 flood report found about 94% of homes are eligible for overland flood coverage. The other 6% tend to be in high-risk areas where coverage may be unavailable or unaffordable. Homes unable to get coverage fell by nearly 45% in seven years, from about 1.5 million to about 850,000. About 2% of homes account for more than half of potential flood losses.
Our guide to whether home insurance covers water damage explains sewer backup and overland water.
Declined or non-renewed: what to do first
IBC's Code of Consumer Rights and Responsibilities says that, under normal circumstances, insurers advise customers of changes or cancellation at least 30 days before the policy expires. Use that time:
- Ask for the reason in writing. You can't fix what you can't name.
- Check whether credit played a part. IBC's credit information code says insurers won't non-renew a personal policy solely on credit information.
- Shop before the expiry date. Don't let the old policy lapse before a new one starts.
- Know where complaints go. Start with your insurer's internal process. The General Insurance OmbudService is free, but it can't address the price or availability of insurance.
Steps that move you back to a standard policy
A high-risk home insurance policy is a bridge, not a destination. To get back to a standard policy:
- Fix the stated reason first: rewire, replace the roof, remove the tank or finish the repair.
- Keep every receipt and inspection report. IBC says upgrades that reduce the risk of a claim, such as better wiring, may lower your premium.
- Install loss-prevention devices such as a monitored alarm, a sump pump or a backwater valve, and tell your insurer.
- Build a clean claims record. Pay for small repairs yourself where your savings allow.
- Tell your insurer about renovations. IBC's consumer code asks you to report changes like renovations promptly.
Then get fresh home insurance quotes at the next renewal.
Local risks: Ontario, Alberta and BC
In Ontario, home insurance is regulated by the Financial Services Regulatory Authority of Ontario (FSRA). Instasure's Toronto estimate for the example profile is $139 a month, a little above Ontario's because our model adds a flood loading. Compare home insurance in Ontario or home insurance in Toronto.
In Alberta, our model adds a hail loading in Calgary, where the same profile comes to $197 a month (October 2026). See our Calgary hail insurance guide and home insurance in Calgary.
In BC, the regulator is the BC Financial Services Authority (BCFSA); see home insurance in BC. Advisor service isn't available in Quebec or the territories yet, so pages there are for information.
How the hard-to-insure desk places a home
Our hard-to-insure desk is for a declined home insurance application, a non-renewal notice or a home flagged as high-risk. A licensed advisor who handles non-standard property:
- Reviews the decline or non-renewal letter and your home's details.
- Tells you which fixes would make the home acceptable to a standard insurer.
- Approaches standard and specialty markets that write this kind of risk.
- Explains each offer's conditions, deductibles and exclusions before you decide.
No one can promise placement, and some homes need repairs first.
Michael's take
As a planner, I treat a decline as a repair project with a budget, not a verdict on the house. Price the fix like any home repair. Then weigh it against the extra premium, conditions and exclusions you'd carry on a specialty policy for as long as the problem stays. Rewiring or a new roof protects the home itself, not just your premium.
On claims, my rule of thumb is to keep a deductible your emergency fund can cover and save claims for losses that would really hurt. In the Ontario example, two past claims took the estimate from $133 to $208 a month. And never let coverage lapse or hide a problem to get a better price. A policy voided for non-disclosure leaves your largest asset, and often your mortgage, unprotected.
Next steps
Start with our home insurance calculator for an instant estimate of where your house sits in the standard market. Read about house insurance coverage options on our home insurance page and the average home insurance cost in Canada. If you've already been declined or non-renewed and need high-risk home insurance, request a specialist call from the hard-to-insure property desk.
