How home insurance works How home insurance works How does it help me? You get financial protection if your house or the things you own are damaged or stolen. From fire and water damage to theft and break-ins, home insurance covers the cost to repair or replace your property so that you don’t have to. Do I need homeowner insurance? If you’re taking out a mortgage to buy a home, you’ll need home insurance. Banks and mortgage lenders in Ontario require that you have insurance before approving a mortgage loan. How much coverage do I need? Onlia uses the value of your home as the basis for your level of coverage. But it’s a good idea to do an inventory of your belongings and adjusting your level of protection as needed. Does home insurance only cover my property? Home insurance also provides personal liability protection if someone is hurt in your home and decides to sue you, or if you unintentionally hurt someone or damage their property.