Insurance
Home insurance, explained
Your lender requires insurance before you can complete a purchase — but the rules, the coverage, and even what counts as 'flood' differ by country. Here's the honest version, with no insurers named and nothing to sell.
United States
Homeowners, flood (separate NFIP policy), earthquake, and title insurance — plus the 2025–26 market reality in Florida, California, Louisiana and beyond. All 51 states.
US insurance →
Canada
Lender-required (not legally mandatory), overland flood as an optional private add-on, and BC’s earthquake risk — with cost by province from Alberta to Quebec. 13 provinces & territories.
Canada insurance →
United Kingdom
Buildings and contents cover — and the big difference from the US: flood is usually included as standard, not a separate policy. What that does and doesn’t mean.
UK insurance →
The one difference worth knowing up front
Flood works three different ways across these countries — getting it backwards is one of the most expensive mistakes a buyer can make:
United States
Flood cover
Never included — separate policy
standard homeowners insurance does not cover flooding; you buy a separate policy (usually the federal NFIP).
Canada
Flood cover
Optional private add-on
flood isn’t included either, but it’s an optional private add-on (not a government program), and a separate one again for sewer backup.
United Kingdom
Flood cover
Typically included as standard
flood is typically included in standard home insurance as standard.
That’s why each country is on its own page here rather than blended into one generic “insurance” explainer.
Home insurance costs — and what they even cover — differ sharply across the three countries. The US spans a huge range driven by disaster risk; Canada treats overland flood as a separate optional add-on; and the UK bundles buildings and contents cheaply, with flood handled by an industry scheme. This hub breaks each country down.
- US average
- $659–$7,136/yr
- Canada average
- $900–$1,800/yr
- UK average
- £180–£460/yr
What drives the cost
In the US, disaster risk creates extremes — from around $659 in low-risk states to over $7,136 in hurricane-exposed Florida, where the market is in crisis. Canada is more moderate ($900–$1,800), and the UK is cheapest of the three (£180–£460) for combined buildings and contents.
The three flood models — genuinely different
The biggest structural difference is flood. In the US, flood is excluded from standard policies and bought separately, mostly through the federal NFIP. In Canada, overland flood is an optional private add-on that many homeowners skip. In the UK, flood cover is built into standard policies and backstopped by the industry's Flood Re scheme.
Dig into your country
Each country page details the average premiums, the main risks that drive them, and what a policy does and doesn't cover — so you can budget insurance as the real cost it is, not an afterthought.
Frequently asked questions
Which country has the most expensive home insurance?
The US has both the widest range and the highest costs — up to over $7,136 a year in crisis states — while the UK is the cheapest for combined buildings and contents.
Is flood damage covered by home insurance?
It depends on the country. In the US it's usually excluded and bought separately (NFIP); in Canada it's an optional add-on; in the UK it's included and supported by the Flood Re scheme.
Why does US home insurance vary so much?
Disaster exposure. States facing hurricanes, wildfire, or severe hail carry far higher premiums, and some have seen insurers withdraw, pushing costs up further.
Educational information only — not insurance advice, and not a quote. We don’t name or recommend insurers. Figures are averages that vary widely by property, location, and insurer; confirm details for your own situation before relying on them.