Course of Construction Insurance vs. Home Insurance: What Canadians should know
When building or renovating your home, your regular home insurance policy won’t always cover you. That’s where Course of Construction (COC) insurance comes in. If you’re a homeowner or builder in Canada, understanding the difference between COC and home insurance can help avoid costly surprises.
Why regular home insurance isn’t enough
Home insurance is designed to protect a completed and occupied home. When you start construction or a major renovation, your property faces different risks. Open walls, exposed wiring, incomplete roofing and unsecured building materials all increase the chance of loss. Standard home policies often exclude these types of risks.
What Course of Construction insurance covers
COC insurance fills that gap. It covers property under construction against risks such as fire, theft, vandalism, and certain weather damage. Policies typically include:
- Building materials and equipment on-site or in transit
- Temporary structures such as scaffolding or fencing
- Damage from construction-related events like windstorms or water damage
Some policies also provide coverage for soft costs, such as extra expenses from construction delays caused by an insured loss.
Who needs Course of Construction insurance?
If you’re building a new home, adding a major extension, or gutting and rebuilding your space, you need COC coverage. This applies whether you’re a homeowner acting as your own general contractor or working with a professional builder. Learn more
When to transition to home insurance
COC insurance is temporary. Once construction is complete and the home is ready to be occupied, it’s time to switch to a standard home policy. Your broker can help you time this transition so you’re never left uninsured.
The Canadian context
Construction insurance requirements and weather risks can vary by province. For example, winter builds in Alberta or Ontario face different challenges than coastal projects in British Columbia or Atlantic Canada. An experienced broker can help customize your coverage to local conditions.
The takeaway
Home insurance and Course of Construction insurance work together, not interchangeably. COC protects your build in progress, while home insurance protects the finished product. Having the right coverage at the right time can save you from unexpected financial setbacks.