Ten Questions Home-buyers Should Ask Before Buying a Home

Updated October 2026

Buying a home is one of the largest financial commitments most people will ever make.

Whether you are purchasing your first home, moving to a larger property or downsizing, there is a great deal to consider before signing an agreement of purchase and sale.

Most buyers focus on the location, purchase price, layout and overall condition of the property.

However, there is another important consideration that is sometimes overlooked: Will you be able to obtain appropriate homeowners insurance for the property?

Insurance companies assess homes based on several factors, including their age, construction, maintenance, heating, plumbing, electrical systems and previous losses.

A property that appears attractive during a viewing may have characteristics that make insurance more expensive, restrict available coverage or require repairs before an insurance company will accept it.

At L.D. Dermody Insurance Brokers, we encourage Ontario homebuyers to investigate these issues before finalizing their purchase.

Here are ten important questions to ask before buying a home.

1. How Old Is the Roof, and What Condition Is It In?

The roof is one of the most important components of a home.

It protects the building from rain, snow, wind and other weather-related damage.

An aging or poorly maintained roof can increase the likelihood of water entering the home.

Before purchasing, ask:

When was the roof last replaced?
What type of roofing material was used?
Have there been any leaks or repairs?
Is there documentation showing when the work was completed?
Did the home inspection identify any concerns?

Insurance companies may consider the age and condition of the roof when deciding whether to insure a property.

Some insurers may require repairs or replacement, impose restrictions or offer different settlement terms for certain types of roof damage.

It is important to understand that homeowners insurance is intended to cover insured losses, not routine maintenance or the replacement of a roof simply because it has reached the end of its useful life.

For more information, see our article Check Your Roof: Why Regular Maintenance Matters for Your Home Insurance.

2. Has the Home Experienced Water Damage, Flooding or Sewer Backups?

Water damage is one of the most significant risks facing Ontario homeowners.

Before purchasing a property, ask whether it has experienced:

Basement flooding.
Sewer backups.
Water entering through foundation walls.
Burst or leaking pipes.
Roof leaks.
Repeated water accumulation around the foundation.

If there has been previous water damage, find out what caused it and what repairs or preventative measures were completed.

For example, a basement that flooded because of a sewer backup may benefit from a properly installed backwater valve.

A home that experienced water entering through the foundation may require improvements to grading, drainage or waterproofing.

Insurance companies may consider the property's loss history, location and physical characteristics when determining the availability and cost of water damage coverage.

Not all types of water damage are automatically covered under a standard homeowners policy.

Sewer backup and overland water coverage may be optional, subject to eligibility requirements, deductibles, exclusions and coverage limits.

For more information, see our article Are You Covered for Water Damage? What Ontario Homeowners Need to Know.

3. What Type of Electrical Wiring and Panel Does the Home Have?

The age and condition of a home's electrical system can affect both safety and insurance eligibility.

Older homes may contain wiring or electrical equipment that insurance companies consider higher risk.

Examples include:

Knob-and-tube wiring.
Certain types of aluminum wiring.
Older electrical panels.
Outdated or inadequate electrical service.
Unpermitted electrical alterations.

The presence of an older electrical system does not automatically mean the home is uninsurable.

However, some insurance companies may require an inspection, repairs or upgrades before agreeing to provide coverage.

Before purchasing, ask whether the electrical system has been updated and whether the work was completed by qualified professionals.

In Ontario, electrical installation work is generally subject to Electrical Safety Authority requirements, including applicable notification and inspection obligations.

If there are concerns about the electrical system, obtain advice from an appropriately licensed electrical contractor.

An expensive electrical upgrade discovered after closing can quickly change the financial picture of a home purchase.

4. How Old Are the Plumbing and Heating Systems?

Plumbing and heating systems are important considerations for homeowners insurance.

Older plumbing materials may be more susceptible to leaks or failure, while aging heating equipment can present maintenance and safety concerns.

Ask the seller:

What type of plumbing is installed?
Have the water supply lines been replaced?
Has the home experienced previous plumbing leaks?
How old is the furnace or boiler?
When was the heating system last serviced?
Is there a secondary heating source, such as a wood stove?

Some insurance companies may require information about particular plumbing materials or heating systems.

If the property has a wood stove or fireplace insert, the insurer may require details about the installation and an acceptable inspection report.

The age of a heating system does not necessarily determine whether coverage is available, but its condition and type may influence the insurer's decision.

It is worth obtaining maintenance records and inspection information before completing the purchase.

5. Has the Property Had Previous Insurance Claims?

A home's insurance claims history can be relevant when arranging coverage.

Previous losses may reveal problems that are not immediately apparent during a viewing.

For example, a property may have experienced repeated sewer backups, water damage or other significant losses.

Ask the seller whether there have been previous insurance claims and whether the underlying problems were corrected.

Where appropriate, request supporting documentation for major repairs.

However, remember that a seller may not know the complete insurance history of the property, particularly if previous losses occurred before they purchased it.

Insurance companies may consider information about previous losses when evaluating an application, but the availability and relevance of claims information can vary.

Do not assume that a repaired insurance claim automatically makes a property difficult to insure.

What matters is often the nature of the loss, whether the cause was corrected and the underwriting requirements of the insurance company.

6. Are There Signs of Foundation or Structural Problems?

Foundation and structural issues can be expensive to repair.

Before purchasing, pay attention to potential warning signs such as:

Significant cracks in foundation walls.
Uneven floors.
Doors or windows that no longer close properly.
Evidence of water entering through basement walls.
Bowing or shifting foundation walls.
Previous structural repairs.

A home inspection may identify visible concerns, but a general home inspection is not necessarily a complete structural assessment.

If significant issues are suspected, consider obtaining an evaluation from a qualified structural engineer or other appropriate professional.

It is also important to understand that homeowners insurance generally does not cover gradual deterioration, ordinary wear and tear or every type of foundation movement.

Insurance is not a substitute for investigating the physical condition of a property before purchasing it.

7. Is the Home Located in an Area Exposed to Flooding or Other Weather Risks?

A property's location can influence its exposure to natural hazards.

In Ontario, risks may include:

Riverine flooding.
Urban flooding following heavy rainfall.
Sewer backups.
Severe windstorms.
Hail.
Ice storms.
Wildfire in certain areas.

A home does not have to be located beside a river or lake to experience significant water damage.

Heavy rainfall can overwhelm drainage systems, and sewer backups can occur in established residential neighbourhoods.

Insurance companies may use location-based risk information when determining the availability, limits and cost of certain coverages.

Before purchasing, consider reviewing available flood hazard information from the local conservation authority or municipality.

Ask your insurance broker whether there are known coverage limitations or eligibility concerns associated with the property's location.

A property may qualify for standard homeowners insurance while having restricted or unavailable coverage for certain types of water damage.

Understanding those differences before closing is important.

8. Were Renovations Completed With the Necessary Permits?

Renovations can improve a property's appearance and functionality, but buyers should investigate how the work was completed.

Ask whether significant renovations were performed with the necessary permits, inspections and approvals.

Examples include:

Structural alterations.
Basement finishing.
Electrical upgrades.
Plumbing changes.
Additions.
Secondary suites.
Changes to heating systems.

Unpermitted work can create legal, safety and financial concerns.

From an insurance perspective, renovations may also change the property's replacement cost, occupancy or risk characteristics.

For example, converting a basement into a separate rental unit can affect the type of insurance required.

A building permit or completed inspection does not automatically guarantee insurance coverage, but proper documentation can help establish what work was performed.

If you are unsure whether a renovation was completed correctly, seek advice from an appropriate professional before purchasing.

9. Are There Features That Could Affect Insurance Coverage?

Certain property features may require additional information or special insurance arrangements.

Examples include:

Wood Stoves and Fireplaces

An insurer may require details about the appliance, installation and inspection history.

Swimming Pools and Hot Tubs

These features can increase liability exposures and may be subject to insurer requirements.

Secondary Suites

A basement apartment or other self-contained unit may affect occupancy classification and insurance eligibility.

Home-Based Businesses

Business activities conducted from the home may require additional coverage.

Short-Term Rentals

Renting rooms or the entire property to paying guests can affect the insurance arrangements.

Detached Buildings

Garages, workshops, sheds and other structures should be reviewed to ensure that appropriate coverage is available.

Older or Unusual Construction

Certain construction methods, materials or property conditions may limit the number of insurers willing to provide coverage.

Before purchasing, provide your insurance broker with an accurate description of the property and how you intend to use it.

Do not assume that every feature is automatically included under a standard homeowners policy.

10. Can You Obtain Appropriate Home Insurance Before Committing to the Purchase?

This may be the most important insurance question of all.

Most homebuyers arranging mortgage financing will be required by their lender to maintain satisfactory property insurance.

However, not every property qualifies for standard homeowners insurance.

Insurance companies may decline to insure certain risks, require repairs, restrict coverage or charge higher premiums.

Potential concerns include:

An aging or deteriorated roof.
Outdated electrical wiring.
Significant unresolved water damage.
An unacceptable heating system.
Extensive renovations in progress.
A vacant or poorly maintained property.
Certain high-risk locations.
Unusual occupancy or rental arrangements.

A buyer who discovers an insurance problem shortly before closing may have limited time to resolve it.

Contact Your Insurance Broker Before Waiving Conditions

Ideally, contact your insurance broker early in the purchasing process.

Provide as much information as possible about the property, including its age, construction, roof, heating, plumbing, electrical system and intended occupancy.

Your broker can discuss available insurance options and identify information the insurance companies may require.

If the insurer has concerns, you may have an opportunity to investigate them before making a final commitment.

Where appropriate, discuss including an insurance condition in the agreement of purchase and sale with your real estate representative or lawyer.

Do not assume that a preliminary insurance quotation guarantees coverage.

A quotation may be subject to underwriting approval, verification of property information, inspections and other conditions.

You should confirm that the insurance arrangements are acceptable before relying on them to complete your purchase.

Why a Home Inspection Is Still Important

A professional home inspection can help identify visible defects and maintenance concerns before you purchase a property.

However, a home inspection and an insurance assessment serve different purposes.

A home inspector evaluates the condition of the property within the scope of the inspection.

An insurance company evaluates whether the property meets its underwriting requirements and what coverage it is prepared to offer.

A property can pass a home inspection yet still present insurance concerns.

Conversely, an insurer may be willing to insure a property that has maintenance issues, sometimes subject to specific conditions.

For these reasons, buyers should consider both the physical condition of the property and its insurability.

Remember That Market Value and Insurance Value Are Different

The price you pay for a home is not necessarily the amount for which the building should be insured.

Market value reflects the property's location, land value and real estate market conditions.

Insurance rebuilding cost is based on the estimated expense of reconstructing the insured building following a covered loss.

Construction costs, materials, labour, building requirements and other factors can affect that estimate.

For more information, see our article Market Value vs. Rebuilding Cost: Why They Are Not the Same.

What Information Will Your Insurance Broker Need?

When requesting a homeowners insurance quotation, be prepared to provide information such as:

Property address.
Year of construction.
Approximate square footage.
Type of construction.
Roof type, age and replacement history.
Electrical wiring and service details.
Plumbing type and updates.
Heating system and fuel source.
Basement condition and water damage history.
Details of renovations and additions.
Occupancy and intended use.
Information about any rental units or home-based businesses.

The insurer may request additional information, photographs or inspection reports.

Providing accurate information from the beginning can help avoid delays and complications.

Buying a Home? Speak With Your Insurance Broker Early

Buying a home should be an exciting experience, not a last-minute scramble to arrange insurance.

Taking the time to ask the right questions can help you identify potential repair expenses, understand insurance limitations and avoid unpleasant surprises after closing.

At L.D. Dermody Insurance Brokers, we work with Ontario homebuyers to review their insurance needs, explain available coverage options and help arrange appropriate protection for their new property.

Whether you're purchasing your first home or moving to your next one, we encourage you to contact our office before your closing date — preferably while you still have an opportunity to investigate any concerns.

If you're planning to buy a home, contact L.D. Dermody Insurance Brokers. We would be pleased to help you understand your insurance options before you make one of life's biggest investments.

This article provides general homebuying and insurance information for Ontario residents as of October 2026. Insurance eligibility, coverage and premiums depend on the insurance company, property characteristics and applicable policy terms. Buyers should obtain independent legal, real estate and professional inspection advice where appropriate.