If you’re buying a home in Winnipeg this year, there’s a step in your mortgage that used to be an afterthought — and it isn’t anymore.

Every lender in Canada requires proof of home insurance before your mortgage can close. No policy, no keys. For decades, that was a ten-minute phone call. But after this June’s flooding across Manitoba left thousands of homeowners discovering — too late — what their policies didn’t cover, and with premiums across Canada up 45% since the end of 2019, home insurance has quietly become something that can delay your closing, shrink your budget, or both.

Here’s what Winnipeg buyers and homeowners need to know.

No Insurance, No Mortgage

When your lender approves your mortgage, they’re lending against the house itself. That’s why every lender requires an active home insurance policy — with the lender listed as “loss payee” — in place before closing day.

Your lawyer will ask for proof of insurance before funds are advanced. If you can’t produce it, your closing doesn’t happen on time. In most transactions this is routine. But in 2026, two things are making it less routine: rising premiums and insurers getting pickier about what — and where — they’ll cover.

What Happened in Manitoba This June

This spring’s storms and flooding hit Manitoba hard, and the aftermath exposed a gap many homeowners didn’t know they had. CBC reported “mass confusion” over what insurance actually covers — because roughly half of Manitoba homeowners have no overland flood coverage at all.

Here’s the part that surprises people: a standard home insurance policy does not cover overland flooding (water flowing in from outside) or sewer backup. Both are optional add-ons. They’re separate add-ons, too — homeowners with sewer backup coverage but not overland water coverage found their claims denied after June’s storms.

The province stepped in with a flood recovery program for those without adequate coverage. But a one-time grant is not a substitute for insurance — and your mortgage lender doesn’t accept disaster assistance as proof of coverage.

Premiums Are Rising Faster Than Inflation

Across Canada, weather-related insurance claims hit a record $9.4 billion in 2024, and insurers have passed those costs along. Home and mortgage insurance premiums rose 45% between December 2019 and December 2025 — more than double the pace of overall inflation.

In Winnipeg, where the average home now sells for about $427,000, insurance is a growing line in your monthly budget. Your mortgage stress test won’t capture it, but your bank account will. And insurers aren’t just raising prices — many are raising deductibles and excluding higher-risk properties. In Manitoba, overland water endorsements now commonly carry a minimum $2,500 deductible, and homes in known flood-prone areas may not be able to get the coverage at all.

What Winnipeg Buyers Should Do Before Firming Up an Offer

A few practical steps can keep insurance from becoming a closing-day surprise:

1. Get an insurance quote before you waive conditions. Don’t wait until the week before closing. If the property is near the Red or Assiniboine, in a low-lying area, or has an older roof, wiring, or plumbing, quotes can come back higher than expected — or with exclusions.
2. Ask specifically about overland water AND sewer backup. They are two different add-ons. In Winnipeg, with our spring thaw and summer storms, you likely want both.
3. Check the home’s claims history. A property with past water claims can be harder or costlier to insure. Your insurance broker can help you check before you buy.
4. Budget the real premium into your affordability math. A few hundred dollars a month difference in carrying costs matters, especially for first-time buyers stretching to qualify.

Renewing or Refinancing? This Affects You Too

If your mortgage is up for renewal, your insurance costs have likely jumped since your last term — worth factoring in when comparing your renewal offer against what other lenders can do. And if you’re refinancing to consolidate debt or fund renovations, an updated insurance policy that reflects your home’s current replacement cost is part of the file.

The Bottom Line

Home insurance used to be the last box you checked before closing. In 2026, it belongs near the top of your list — right after your mortgage pre-approval. Rising premiums, higher deductibles, and coverage gaps around flooding mean Winnipeg buyers should know what a home will cost to insure before they commit to buying it.

If you’re planning a purchase, renewal, or refinance and want to make sure your whole file — not just your rate — is in order, I’m happy to help. I shop 90+ lenders to find the mortgage that fits, at no cost to you.

Call 204-890-2446 or apply online to get started.