Home Insurance vs fire insurance

What is the Difference: Home Insurance vs Fire Insurance

Home insurance, sometimes referred to by legal professionals as ‘fire insurance,’ has evolved to safeguard your residence and personal belongings against a wide range of unforeseen events. It’s important to understand that these terms refer to the same type of insurance. It’s essential, especially for first-time home buyers or newcomers to Canada, to understand that while not mandated by law, home insurance is commonly required by lenders to secure a mortgage.

123 Arson Cases in 2025

In 2024, the city of Regina saw a total of 553 cases of reported arson (Source: Regina Policy Crime Stats)

What is Home Insurance?

Home insurance, a cornerstone of financial security for homeowners, offers protection for your most valuable asset: your home. It encompasses not only the physical structure of your home but also extends to personal belongings, additional living expenses, and liability protection for incidents. Home insurance policies are diverse, including Comprehensive and Broad forms, each offering varying levels of coverage.

Comprehensive Form

The Comprehensive form provides the most extensive coverage, safeguarding against all risks except those explicitly excluded in the policy.

  • Covers all risks unless specifically excluded
  • Protects both building and contents
  • Highest level of coverage available
Broad Form

The Broad form focuses on specified perils to protect the building itself, with less coverage for belongings, typically, depending on your insurer.

  • Comprehensive coverage for the building
  • Named perils coverage for contents
  • Good balance of protection and affordability

Understanding Fire Coverage in Home Insurance

It’s important to understand that “fire insurance” is simply an older term for what we now call home insurance. Legal professionals and some institutions may still use the term “fire insurance,” but they are referring to the same comprehensive home insurance coverage that protects your property. Fire coverage has been a fundamental aspect of home insurance since its inception in the 1600s and remains a prevalent type of claim today.

When it comes to your policy, fire coverage typically includes protection not only for the structure of your home but also for your personal belongings in the event of fire-related loss or damage.

However, it is essential to understand that, as homeowners, intentional acts of starting a fire or displaying extreme negligence in fire safety could invalidate your coverage for a fire incident in your home.

What fire causes are covered?

(The following list is suggested examples and is not considered an exhaustive list.)

Typically Covered Fire Causes

  • Fires ignited by a lightning strike.
  • Kitchen grease fires.
  • Fires started by children accidentally knocking over a lit candle.
  • Fires sparked by a gas leak.
  • Fires resulting from a fireworks accident (as long as the fireworks are legally obtained).

*In the event of any discrepancy between the information presented here and the official documentation provided by your insurer or any other relevant authority, the insurer’s documentation shall take precedence.

What fires are not covered?

Typically Excluded Fire Causes

  • Intentional Acts: If a fire is intentionally set by the homeowner, a tenant, or someone with permission, the insurance company likely won’t cover the damage.
  • Negligence: Some policies may exclude fires caused by homeowner negligence exceeding a certain standard. This could include things like leaving flammable materials near heat sources or repeatedly ignoring fire safety measures.
  • Vacancy: If your home is vacant for an extended period (date range depends on the policy), fire damage might not be covered if the change in occupancy was not reported to your insurer.
  • War & Civil Commotion: Damage caused by riots, wars, or civil unrest typically isn’t covered by standard home insurance.

The Number One Cause of House Fires You Need to be Aware of This Fall

Key Differences Between Home Insurance Packages

Understanding the differences between home insurance packages is crucial, especially for first-time home buyers and those new to Canada. Here’s a concise breakdown to guide your decision:

Coverage Scope

Home insurance, in general, offers a broad range of protection; however, depending on your policy, the array of perils covered may differ, including coverage limits for certain items such as jewellery, watches or collectibles.

Premium Costs

Due to its more limited coverage, Broad insurance generally comes with a lower premium cost. Comprehensive home insurance, which provides extensive protection, may have a higher premium.

Personal Liability Coverage:

Personal liability coverage is a crucial component of your home insurance policy that many homeowners overlook or misunderstand. This coverage extends your protection beyond just your physical property, providing financial security for you and your family in situations where you’re legally responsible for bodily injury or property damage to others.

What Does Personal Liability Insurance Cover?

Personal liability coverage typically protects you in various scenarios, including:

  • Bodily Injury to Others: If someone is injured on your property or as a result of your actions, your liability coverage can help pay for their medical expenses, lost wages, and pain and suffering.
  • Property Damage: If you accidentally damage someone else’s property, liability insurance can cover repair or replacement costs.
  • Legal Defence: If you’re sued due to an incident covered by your policy, liability insurance can pay for your legal defence costs, regardless of whether you’re found liable.
  • Pet-Related Incidents: If your pet injures someone or damages their property, liability coverage can typically help with the resulting costs.

Coverage Limits: Standard home insurance policies generally include personal liability coverage ranging from $1,000,000 to $5,000,000. You may want to consider increasing these limits based on your specific situation and risk factors.

Not Covered by Personal Liability: Intentional acts, business activities, car accidents, or injuries to you or members of your household are typically not covered by personal liability insurance.

“Personal liability coverage is one of the most valuable components of your home insurance policy. For a relatively small portion of your premium, it provides substantial protection against potentially devastating financial losses. We always recommend that homeowners carefully consider their liability exposure and ensure their coverage limits are adequate for their situation.”

— Harvard Western Insurance

Tree Damage and Liability: 

A large maple branch from the backyard tree broke off

One of the most common questions homeowners ask is about their liability when trees or branches from their property cause damage to neighbouring properties. This concern is especially relevant in regions like Saskatchewan, where severe weather events, including high winds and ice storms, can cause tree damage.

Understanding Your Liability for Tree Damage

When it comes to trees on your property causing damage to neighbouring properties, liability generally depends on several factors:

  • Tree Health and Maintenance: If a healthy tree falls due to a storm or other “act of God,” the property owner where the tree lands is typically responsible for the damage through their own insurance.
  • Negligence: If you knew (or should have known) that a tree was diseased, damaged, or dangerous and failed to address it, you could be liable for damages if it falls.
  • Prior Warnings: If your neighbour previously notified you about a potentially dangerous tree and you took no action, this could strengthen a negligence claim.

Personal Liability Coverage: Most home insurance policies include personal liability coverage that can protect you if you’re found legally responsible for damage caused by your trees.

Case Study: The Peterson’s Maple Tree Branch

A large maple branch from the Petersons’ backyard tree in Regina broke off during a wind storm, damaging their neighbour’s fence, garden shed, and a garden sculpture.

The proper course of action for both the Petersons and their neighbours was to contact their respective insurance companies to file a claim. An insurance adjuster would then investigate the incident to determine the cause of the damage and if negligence was a factor. This investigation will decide if one party is liable for the damage and whether the process of subrogation should begin. 

What is Subrogation: Subrogation is when an insurance company, after paying a claim to its client, tries to recover that money from the insurance company of the person responsible for the damage.

For example, the neighbour’s insurance company pays for the repairs to their shed. If they believe the Petersons are at fault, the neighbour’s insurance company can “step into the neighbour’s shoes” and seek reimbursement from the Petersons’ insurance company. This is the process of subrogation.

 

Preventative Measures to Reduce Tree Liability Risk

  • Regularly inspect trees on your property for signs of disease, damage, or instability.
  • Have large or aging trees professionally assessed by an arborist every few years.
  • Promptly remove dead branches and trees identified as hazardous.
  • Keep records of tree maintenance and professional assessments.
  • Consider increasing your liability coverage limits if you have many large trees on your property.

“Being proactive about tree maintenance isn’t just about preventing property damage, it’s about being a good neighbor and reducing your potential liability. Most home insurance policies include liability coverage, but it’s important to understand when it applies and when it doesn’t.”

— Harvard Western Insurance

FAQs

What is the difference between fire insurance and home insurance?

Fire insurance is home insurance. Initially, fire insurance was the only available option and was designed solely to cover fire-related incidents. However, over time, this type of insurance has evolved into what is now commonly referred to as home insurance, which provides a broader range of coverage beyond just fire-related damages.

What are the potential drawbacks of having home insurance?

One of the main disadvantages of fire insurance is the complexity of its terms, conditions, and exclusions, which can sometimes lead to confusion about what is and isn’t covered.

In the event of a fire, what will my insurance cover?

In the context of a home and contents insurance policy, fire insurance will cover the costs of repairing and rebuilding your home if an insured peril causes damage. Your insurance will replace everything inside your home that was damaged by the fire up to the limit stated on your policy Cover Page.

The information provided in this article is intended for general informational purposes only and should not be construed as professional advice. While we strive to ensure the accuracy and timeliness of the content, it is important to understand that individual circumstances and claim outcomes can vary significantly. This information should not be used as a substitute for personalized guidance from qualified professionals. In the event of any discrepancy between the information presented here and the official documentation provided by your insurer or any other relevant authority, the insurer’s documentation shall take precedence. We recommend consulting with your insurer or a qualified expert to discuss your specific situation and obtain tailored advice.


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Last updated: September 5