Carrying home insurance is not legally mandatory under any provincial or federal statute in Canada. A homeowner who owns their property outright with cash and carries no outstanding mortgage can legally choose to go completely uninsured, assuming 100 percent of the personal financial risk for fires, storms, or liability lawsuits. However, if you finance your home purchase with a mortgage loan, every lending institution contractually requires you to maintain active homeowners insurance naming them as loss payee to protect their financial security interest.
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