If your home insurance has been cancelled or refused in Manitoba, you have four realistic options. You can buy special risk insurance to stay covered for now. You can shop the house through other brokers. You can ask your insurer exactly what needs fixing and negotiate. Or you can sell. Don’t sit uninsured while you decide. One fire or burst pipe in that gap can cost you the whole house. Here is how each option works, and what I’ve seen happen to Winnipeg homeowners in your position.
Why Insurers Drop Older Winnipeg Houses
Insurers look at risk, and older Winnipeg houses carry several things they don’t like. Some of the common ones:
- Knob-and-tube wiring. Many insurers won’t cover it at all, and others want an electrician’s inspection first.
- Vacancy. An empty house is a bigger risk, because nobody is there to notice a leak or a break-in.
- Asbestos and other hazards that make repairs more expensive.
- Old oil tanks, especially buried ones nobody has tested.
- Overall condition, including bylaw problems and outbuildings in rough shape.
Knob-and-tube wiring has been a Winnipeg problem for a long time. In 2011, a Manitoba Real Estate Association task force estimated that 30,000 to 35,000 of the city’s 160,000 homes still had it. Insurers were demanding upgrades costing up to $35,000, with 30 to 60 days’ notice. By 2017, a Winnipeg electrician still put it at about 30 percent of homes, mostly those built between 1900 and 1920. Our guide to selling a house with knob-and-tube wiring in Winnipeg covers that problem in detail.
Vacancy is the one that catches people
In my experience, vacancy is the most common reason an insurer backs away. An empty house is a higher risk for them, plain and simple. The Insurance Bureau of Canada says most policies exclude frozen pipes and water damage in a vacant home, even when you have the insurer’s permission for the vacancy. A home that will sit unoccupied for more than 30 days generally needs notice to your insurer. If your house is empty, read our guide to selling a vacant house in Winnipeg.
A Real Example: An Estate House on Cathedral Avenue
One of the clearest cases I’ve dealt with was a vacant estate house on Cathedral Avenue in the North End. It had asbestos, knob-and-tube wiring, bylaw violations, and a garage in rough shape. Because of its condition, the insurer said no. The estate was given 15 days’ notice before coverage ended, and that notice is what pushed it to sell.
We made a fair offer and closed in under 14 days, inside that 15-day window and before the coverage ran out. You can read the full story in our Cathedral Avenue estate case study. The lesson I took from it is simple: once an insurer gives you a deadline, the clock matters more than anything else.
Option 1: Get Special Risk Insurance for Now
If you want peace of mind while you figure things out, look into special risk insurance through a broker. It is built for houses standard insurers won’t take: vacant houses, homes under renovation, and properties in rough condition. If the house burns down or something else happens, at least you are covered.
The catch is cost. As a flipper, I carry this kind of coverage on the houses I renovate. I pay roughly $1,500 to $2,500 for every three months. Most homeowners can’t stomach that. If you plan to hold the house for a year, do the math: that’s roughly $6,000 to $10,000 a year just to stay insured. It works as a bridge while you sell or fix the house. It doesn’t work as a long-term plan.
There is no insurer of last resort for homes in Manitoba. Facility Association, the backstop insurer some provinces use, covers only automobile insurance, and Manitoba isn’t one of its jurisdictions. So for a hard-to-insure house, your route is a broker who works with specialty insurers.
Option 2: Talk to Different Brokers
One insurer saying no doesn’t mean every insurer will. Insurers weigh risks differently, and an independent broker can take your house to several of them at once. Go in prepared. Bring photos, receipts for any upgrades, and an electrician’s report if wiring is the issue. The Insurance Bureau of Canada gives homeowners in this spot the same advice: bring your renovation records and shop around.
Option 3: Ask What Needs Fixing, and Negotiate
Before you assume the worst, call your insurer and ask a direct question: what would you need to see fixed to insure this house again? Sometimes the answer is a single item, such as an electrical inspection, a new roof, or removing an old tank. Get that list in writing.
Then price it. If the fix is affordable, doing it may be your cheapest path, because it keeps the house insurable for the next buyer too. If the list is long, you’ll know quickly that repairs aren’t realistic, and that is useful to know as well.
Option 4: Sell the House
Selling is the worst case, but sometimes it is the right call, because insurance is that important. You also need to know how an uninsurable house affects your buyers. A lender requires proof of insurance, naming the lender, before it funds a mortgage. If a buyer’s insurer won’t cover the house, their mortgage usually can’t close. That takes most regular buyers off the table.
A cash buyer doesn’t need a lender’s approval, so the insurance problem doesn’t stop the sale. The condition gets priced into the offer instead. Our page on your options for selling a house as-is in Winnipeg compares the routes. If your insurer has already given you a date, you can get a free cash offer now, so you have a number in hand before the deadline.
What to Do This Week
- Get the cancellation or non-renewal date in writing, so you know exactly how long you have.
- Ask your insurer for the specific reasons and the repairs they would need.
- Call an independent broker about special risk coverage for the gap.
- Get quotes for the repairs on the insurer’s list.
- If the house is part of an estate, bring in the executor and the estate lawyer now.
- Get a cash offer as a backup, even if you plan to fix the house.
This article is general information, not insurance, legal or financial advice. Policies and insurers differ, so confirm your coverage and options with a licensed insurance broker.
Frequently Asked Questions
What can I do if my home insurance is cancelled in Manitoba?
Get the end date in writing, then work four options at once. Ask a broker about special risk coverage for the gap, shop the house to other insurers, ask your insurer which repairs would restore coverage, and get a cash offer as a backup. Don’t leave the house uninsured while you decide.
Is there high-risk home insurance in Manitoba?
Yes, through brokers who work with specialty insurers, often called special risk or non-standard coverage. Manitoba has no insurer of last resort for homes. Facility Association only handles automobile insurance and doesn’t operate here. Expect higher premiums and stricter conditions than a regular home policy.
How much does special risk home insurance cost?
It varies by house and insurer. As a renovator, I pay roughly $1,500 to $2,500 for every three months on the houses I carry, which works out to about $6,000 to $10,000 a year. That makes sense as a short bridge, but it is expensive for most homeowners to hold for long.
Can a buyer get a mortgage on a house that can’t be insured?
Usually not. Lenders require proof of insurance naming them before they fund a mortgage. If the buyer’s insurer refuses the house, the financing normally can’t close. That is why uninsurable houses tend to sell to cash buyers and renovators, who price the repairs into their offer.
Should I fix the house or sell it after my insurance is cancelled?
Ask your insurer exactly what would restore coverage, then price those repairs. If the list is short and affordable, fixing it can keep every buyer open to you. If it is long or costly, or the deadline is close, selling as-is may cost you less than repairing and insuring in the meantime.
Written by Renz Javing, owner of We Buy Houses Winnipeg, a BBB-accredited local cash home buyer with a 4.8-star rating from 89 Google reviews.
