Do I need home insurance in place before my real estate closing in Ontario?

Yes, in practice you must have home insurance in place before you can close on a property purchase in Ontario if you are financing with a mortgage. Most lenders require proof of property insurance as a condition of advancing mortgage funds on closing day. Your lawyer will typically ask for a certificate of insurance or a binder letter before the closing proceeds.

Even if you are buying without a mortgage, having insurance in place at or before closing is strongly advisable. You bear the risk of ownership from the moment the deal closes, so any loss after that point — fire, water damage, liability — is your responsibility.

Home insurance premiums are not typically included in your closing costs statement because you pay the insurer directly, not through your lawyer. However, some insurers require the first year's premium upfront, so it is an out-of-pocket cost to budget for around the time of closing. Shop for coverage before your closing date — do not leave it to the last minute. Inform your insurer of the purchase date and ensure the policy start date aligns with your closing date, as gaps in coverage can be problematic.