Broad Form vs. Comprehensive Home Insurance: Which is Best?
In Saskatchewan, you generally choose between two types of coverage: Broad Form and Comprehensive. Let’s break down the differences using standard homeowners’ wordings so you can avoid a “coverage gap” when you need help most.
How Familiar are Canadians with Their Coverage?
In the wake of record-breaking winter storms across Canada, many homeowners are realizing they aren’t exactly sure what their insurance covers. With winter storms getting harsher and household budgets tighter, that lack of knowledge can be dangerous.
Very Familiar (26%)
Somewhat Familiar (52%)
Not Very Familiar (17%)
Not Familiar at All (5%)
According to the Ratehub.ca 2025 Home Insurance Survey.
Coverage Comparison: Broad vs Comprehensive
↔️ Swipe or scroll right to view all coverage details
| Feature | Broad Form | Comprehensive Form |
|---|---|---|
| Building Structure | All-Risk (See definition below) | All-Risk (See definition below) |
| Your Belongings | Named Perils (See list below) | All-Risk (See definition below) |
| Accidental Damage | Coverage Limited to Building Only | Covers Building and Belongings |
What exactly are “Named Perils”?
Under a Broad Form policy, your property is only insured for damage caused by specific events listed in your policy. If it’s not on the list, it’s not covered. These standard events include:
- Fire or Lightning
- Explosion or Smoke
- Theft or Attempted Theft
- Vandalism or Malicious Acts
- Windstorm or Hail
- Falling Objects (e.g. a tree)
- Impact by Aircraft or Vehicle
- Electricity (Sudden surges)
- Water Escape (Plumbing)
- Riot
What is “All Risk” Coverage?
Under a Comprehensive Form, your coverage moves from “Named Perils” to “All Risk” (often called All-Perils). Instead of a limited list of what is covered, “All Risk” means that loss or damage from any external cause is covered, UNLESS the policy specifically lists that cause as an exclusion.
Think of it this way: With Named Perils, the burden is on you to prove the damage was caused by a listed event. With All Risk, the burden is on the insurance company to prove that the cause of damage is excluded by the policy wording.
Jewelry, Watches & Furs: Difference in Special Limits
When it comes to items like jewelry, watches, or furs, the dollar limits often look the same on paper, but the quality of the coverage varies wildly between Broad and Comprehensive forms.
Jewellery, Watches, Art, Bicycles or Instruments: For claims involving loss due to theft or mysterious disappearance, please note there are specific limits on the amount of coverage available.
If the loss is caused by, say, a fire in the home, the full limit of your belongings coverage applies. However, unless the item is specifically “scheduled” on your policy, it is typically subject to Actual Cash Value (ACV) rather than replacement cost.
Coverage for Theft Claims
Limits apply to your coverage, specifically to items stolen. The amount may vary between Broad and Comprehensive Forms, so be sure to consult your insurer’s wording booklet.
↔️ Swipe or scroll right to view all coverage details
| Item Category | Limit Per Item | Total Limit Per Claim |
|---|---|---|
| Jewelry, Watches, Furs | No Limit Per Item(but subject to the total claim limit) | $10,000 |
| Bicycles & E-bikes | $3,000 | Policy Belongings Limit |
| Works of Art | $15,000 | Policy Belongings Limit |
Disclaimer: This information is pulled from the SGI Canada Property Manual Broad Form as a case example. Please note that coverage limits and definitions differ per insurer. Always check your own policy declarations.
Coverage for Mysterious Disappearance
This covers items that simply “vanish” without evidence of theft or damage. This is a major gap for Broad Form policies.
↔️ Swipe or scroll right to view all coverage details
| Item Category | Broad Form Coverage | Comprehensive Limit |
|---|---|---|
| Jewelry, Watches, Furs | Not Covered | Up to $10,000 total |
| Bicycles & E-bikes | Not Covered | Up to $3,000 per bike |
| Works of Art | Not Covered | Up to $15,000 per item |
Disclaimer: This information is pulled from the SGI Canada Property Manual as a case example. Please note that coverage limits and definitions differ per insurer. Always check your own policy declarations.
Scheduling vs. Unscheduled Items
If you choose to schedule an item (like an engagement ring or a specific painting), you are buying specific, Comprehensive coverage for that one item, regardless of your main policy type. This ensures it is covered for “All-Risk”, including mysterious disappearance.
If you have a Broad Form policy and choose NOT to schedule these items, they remain subject to Broad Form coverage. If you lose an unscheduled ring, your claim will likely be denied because your base policy does not include mysterious disappearance.
Loss Scenario Example
The “Mysterious Disappearance”
You take off your diamond engagement ring to wash your hands at a public park, walk away, and realize 20 minutes later it’s gone. You go back, but it’s nowhere to be found. There is no sign of a break-in or theft; it just vanished.
What coverage is needed? For this claim to be approved, you would need Comprehensive coverage. A Broad Form policy would deny this because a “Named Peril” (like fire or theft) didn’t happen. To protect the full value of the ring, it should also be scheduled on the policy.
Journey Map: The Engagement Ring Claim
What happens when your ring goes missing?
Broad Form
1
Event:
Event:
The ring is lost/vanishes (Mysterious Disappearance).
2
The Filter:
The Filter:
Is “Mysterious Disappearance” a Named Peril? No.
✕
Claim Denied
Claim Denied
Broad Form only covers specific events like fire or theft. Since it went missing, there is no coverage.
Comprehensive
1
Event:
Event:
The ring is lost/vanishes (Mysterious Disappearance).
2
The Filter:
The Filter:
Is it an excluded peril? No. (All-Risk includes accidental loss).
✓
Claim Approved
Claim Approved
Subject to the $10,000 Special Limit (unless scheduled for more).
Key Takeaway: Without Scheduled Coverage, a Broad Form policy provides zero protection for lost or misplaced jewellery.
Winter Hazards & Coverage Gaps
Winter brings a unique set of risks that many homeowners don’t consider until something goes wrong,” says Daniel Ivans, an insurance expert at Rates.ca. “Reviewing your policy now helps homeowners understand what’s included and where additional coverage may be beneficial.
Understanding policy exclusions is just as important as knowing what is covered. When participants were asked if they were aware of exclusions for events like floods, mould, or pest infestations, the results highlighted a significant gap in protection:
*Data based on the Ratehub.ca 2025 Home Insurance Survey.
64%
Aware of Exclusions
Claim to know what is omitted from their policy
36%
Unsure or Never Checked
Over a third of Canadians are at risk of “late discovery”
Broker Tip: Standard policies do not include flood insurance; it must be added through sewer backup and overland water endorsements. [Coverage Information]
Maintenance Tips to Lower Your Risk
Matt Hands, Ratehub’s vice president of insurance, offers these tips to help keep winter damage at bay:
Pipe Protection: Use insulation sleeves on pipes in unheated areas. If you go on vacation, set your thermostat above 13°C and leave sink cabinet doors open.
Snow Removal: Use a roof rake to remove heavy snow buildup. Ensure downspouts extend at least two metres from the foundation.
Sump Pump Check: Test your pump once a year and install a battery backup for power outages.
Attic Ventilation: Ensure your attic is properly ventilated to regulate temperature and prevent the formation of ice dams.
Is Your Home Protected for the Next Polar Vortex?
Don’t wait for a claim to find out what’s in your policy. Our brokers can help you compare Broad and Comprehensive options to find the right fit for your budget.
Disclaimer: This article references information and standard policy wordings from SGI CANADA (Homeowners Comprehensive Form 1010 and Broad Form 1020). These summaries are for educational purposes and do not replace the legal language of your specific insurance contract.
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Posted in Home & Tenant on March 27, 2018 by Harvard Western Insurance
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