Are there risks if I buy home insurance without a broker?

Did you know home insurance rates in Canada have jumped by 5.28% in 2025? That means now, more than ever, choosing the right home insurance really matters. While buying directly from an insurance company might seem quick and easy, it can leave you exposed to big risks.

Many people don’t realize the difference between going direct and using a home insurance broker. When you go direct, you only deal with one company and their fixed offers. But a broker works for you—not the insurer. They compare different companies, help you find the best price, and make sure you get the right coverage for your home.

Understanding Insurers vs. Brokers

First, let’s clarify the roles:

• Direct insurance agent: Represents one insurance company. Their role is to sell policies exclusively from that company, usually via call centres or online platforms. They focus on that single provider’s offerings, with predetermined pricing and limited flexibility.
• Home insurance brokers: Acts on your behalf. They research and compare policies from multiple insurers. With a broker, you get unbiased advice, a wider selection of options, and someone who advocates for you at every step—before, during, and after a claim.

This fundamental difference shapes the quality, coverage, and cost of the policy you end up with.

1. Inadequate or Unsuitable Coverage

   One of the biggest risks of bypassing a broker is ending up with a policy that doesn’t fully cover your needs.

   • Misjudging your risk profile: Standard home insurance typically includes protection against fire, theft, and windstorms. However, certain perils—such as floods, earthquakes, or sewer backups—are typically excluded unless explicitly added.
   • Overlooking exclusions or underinsuring: Many homeowners don’t realize that wear-and-tear, rust, rot, mould, and pests are generally not covered. Others underestimate the replacement cost of their home or belongings to save on premiums, but this leaves them seriously underinsured. If a loss occurs, the payout may barely scratch the surface of what’s required to rebuild or replace.
   • Difficulty insuring “non-standard” homes: Homes with multiple previous claims, gaps in coverage, or non-traditional mortgages (private, alternative financing) can be challenging to insure. Direct agents may simply decline coverage, while brokers, with access to multiple insurers, may be able to find a policy that suits your unique circumstances.
2. Missing Out on Savings

   Although direct rates might look lower at first glance, they often mask missed savings opportunities.

   • Limited comparison scope: Buying direct means relying on a single insurer’s offerings. If you wanted to compare with others, you’d have to repeat the entire application process multiple times. Brokers compile and compare quotes from a range of insurers, saving you time and often uncovering more affordable rates.
   • Unapplied discount eligibility: Insurance policies come with a variety of possible discounts such as —bundling home and auto, claims-free reductions, mature homeowner price breaks, new-home credits, and mortgage-free rewards.
3. Misinterpretation and Administrative Oversights

   Insurance policies can be complex legal documents. Without expert help, it’s easy to misinterpret key language or overlook obligations.

   • Complicated insurance jargon: Words such as “deductible,” “premium,” “policy limit,” “endorsement,” “exclusion,” “peril,” “actual cash value,” and “replacement cost” are not self-explanatory. Brokers translate this legalese into plain language and determine how it applies to your specific situation.
   • Obligations around “material change in risk”: You must inform your insurer whenever significant changes occur—like a renovation, installing a pool, starting a home-based business, or renting out part of your home. If a change goes unreported, insurers may deny a future claim—or even void the policy entirely. An experienced broker keeps track of these changes and ensures disclosure is timely and accurate.
   • Evolving insurance needs: Over time, your insurance needs change—to match major life events, home renovations, or changing contents. Brokers conduct annual policy reviews and advise on necessary adjustments. Without such guidance, you risk lingering underinsurance or paying for coverage that no longer fits.
4. Lack of Claims Support

   Handling a home insurance claim is often stressful and complex. Try doing it alone and you may face undue delays, misunderstandings, or refusals.

   • Navigating the claim process: If damage occurs, you’ll need to know what paperwork is required, adhere to strict deadlines, and accurately report the situation. Without expert help, mistakes at any step can lead to payout delays or rejection.
   • Insurer disputes you must handle alone: When an insurer denies a claim, it may cite misrepresentation, undisclosed renovations, unpaid premiums, or technical details. If you face denial, you might need to comb through the policy, gather extra evidence, appeal formally—or even hire legal counsel. A broker brings experience to challenge insurers on your behalf and escalate the issue appropriately.
   • Avoiding unintentional missteps: Simple mistakes—such as delaying notification, initiating repairs before claiming, or failing to record damage properly—can undermine the claim. A broker advises you on what to do immediately after damage occurs, protecting your rights and coverage.

Let a broker help you secure the right home insurance

An independent insurance broker gives you clear advice, strong support, and helps avoid common problems like poor coverage, policy confusion, or claim issues. For most homeowners, the extra protection and peace of mind a broker provides are worth much more than the small convenience of buying insurance directly.

Your home is a big investment—you need to protect it properly.

At Begin Insurance, we make home insurance simple. We work with many insurance companies to find you the best coverage at the best price. We help you compare options, understand what’s included, and choose what’s right for you. We also help with added protection for valuable items, overland flooding, sewer backup, or extra liability coverage. Get a home insurance quote online today.

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