For sellers
Protection if your buyer doesn't close.
Home Closing Insurance protects home sellers in Canada if their buyer delays or fails to close on a firm sale. If your buyer walks and your claim is covered, we pay your lawyer and advance the deposit.
Already accepted a firm offer? You can still get covered if closing is more than 15 days away. Not firm yet? Get pre-approved and lock your rate for 90 days.
From $349Most sellers pay $349 to about $1,300, once. No deductible, no renewal.
80-second explainer
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What Home Closing Insurance covers, what it costs and who it's for, in about 80 seconds. Captions and a full transcript are included.
What is Home Closing Insurance?
A one-time policy that covers a seller's financial losses when a buyer delays or defaults on a firm offer.
It pays to pursue the buyer, advances the buyer's deposit while you wait, and can cover carrying costs, relisting costs and a lower resale price.
- Buyer delay
- The buyer can't complete on the agreed closing date, but the sale may still go ahead later.
- Buyer default
- The buyer fails to meet their obligations under the purchase agreement, and the sale may fall through.
What a failed closing cost one Ontario seller.
$218,138.93
awarded by an Ontario court after the buyer walked away
In Kisliuk v. Algai, 2023 ONSC 1841, a Thornhill, Ontario buyer failed to close and the court awarded the seller damages.
The home resold for $160,000 less than the agreed price, and the seller paid $56,291.43 more in mortgage interest, penalties, repairs and other costs. The buyer's $75,000 deposit stayed in trust until the court ordered its release.
Illustrative comparison based on a public court decision and a Home Closing Insurance quote. Coverage is subject to policy terms, limits and exclusions, and would not necessarily cover every amount awarded. Source: Kisliuk v. Algai, 2023 ONSC 1841 (CanLII).
| Loss | Amount |
|---|---|
| Resale shortfall (lower second sale price) | $160,000.00 |
| Additional mortgage interest while unsold | $19,223.50 |
| Mortgage renewal penalties and charges | $13,088.27 |
| Repairs and preparation for resale | $10,124.49 |
| Other awarded expenses | $13,855.17 |
| Total | $218,138.93 |
What does Home Closing Insurance cover?
A failed closing can mean ongoing mortgage payments, legal bills and the cost of reselling, sometimes for less. Pick the plan that fits.
- Essentials: your lawyer's costs to pursue the buyer, plus the deposit advanced to you.
- Essentials Plus: all of that, plus your bills while the house sits and the cost of relisting.
- Comprehensive: all of that, plus the difference if your home sells for less.
Each row shows what's covered under Essentials, Plus and Comprehensive.
| Coverage | What it pays | Essentials | Essentials Plus | ComprehensiveMost complete |
|---|---|---|---|---|
| Legal expenses and damage recovery | Legal costs to pursue the buyer, plus an advance of the buyer's deposit while you wait | Included | Included | Included |
| Contractual obligations | Obligations you still owe if closing is interrupted by an insured event, up to $15,000 | Included | Included | Included |
| Carrying costs | Mortgage, property taxes, utilities and insurance while you still own the home | Not included | Included | Included |
| Relisting costs | Staging, rentals and new listing photos to resell | Not included | Included | Included |
| Home value protection | The shortfall if your home resells for less, up to $100,000, $150,000 or $200,000 | Not included | Not included | Included |
| Equity advance | Half of your expected equity paid to you early after a default. You repay it only if the home resells without a loss. | Not included | Not included | Included |
Carrying and relisting costs share a combined limit of $50,000. The most any policy pays, all coverages combined, is $250,000. Coverage is subject to the policy's terms, limits and exclusions.
How does Home Closing Insurance work?
Before closing
Get pre-approved
Before your sale is firm, get a quote. We'll pre-approve your sale and hold your rate for 90 days.
You get a firm offer
Your buyer makes an offer, you accept and all conditions are waived. Already firm? Start here.
Activate your policy
We issue your policy once the sale is firm and closing is more than 15 and less than 120 days away. You get a certificate to share with your agent and lawyer.
If your buyer delays or defaults
Start your claim
Call us as soon as your buyer delays or backs out. If your claim is covered, we fund the legal costs of pursuing the buyer and advance their deposit to you. Start a claim.
Get carrying costs covered
Depending on your plan, we cover mortgage payments, property taxes and utilities, and can advance part of your equity.
Relist your home
We cover eligible relisting costs, like staging and new listing photos.
Recover a lower sale price
If your home resells for less than the original price, we cover the difference, up to your policy limit.
Questions sellers ask us.
Need help with your situation? Call 1-833-766-2329, Monday to Friday, 9 am to 5 pm ET.
I've already accepted a firm offer. Is it too late?
No. You can still apply after your sale is firm, as long as your closing date is more than 15 days away. Apply as soon as you can after the sale goes firm: the quote checks your dates in about a minute.
If your sale isn't firm yet, get pre-approved now and your rate is held for 90 days.
How much does Home Closing Insurance cost?
It starts at $349, paid once. Most sellers pay between $349 and about $1,300, depending on the plan and the coverage amount they choose. Your quote shows your exact price in about a minute, with no obligation.
When do I pay, and what if my buyer never closes?
You pay once, when you buy the policy after your sale is firm. Your card is authorized at checkout and charged when the policy is approved. There's no deductible and no renewal.
If your buyer then fails to close, that's what the policy is for: you make a claim.
Who can pay for the policy?
The seller, the seller's real estate agent or the buyer can pay. The seller is always the insured.
Who is eligible for Home Closing Insurance?
You're eligible if you're selling a private residence you own, anywhere in Canada except Quebec, for under $4,000,000, with a licensed real estate agent involved. The buyer's deposit must be at least $4,000, and the closing date must be more than 15 and less than 120 days away.
New builds, vacant land, rural-zoned properties and mobile homes aren't eligible.
Isn't that what the buyer's deposit is for?
The deposit can help, but it's usually held in trust until a court or both parties release it, which can take months. It also may not cover your full losses. Home Closing Insurance can advance the deposit to you once your claim is accepted, and covers eligible costs beyond it, up to your policy limits.
Is Home Closing Insurance the same as home insurance?
No. Home insurance covers your building, contents and liability. Home Closing Insurance covers the financial loss when a buyer fails to close. You still need your regular home insurance, including vacancy coverage.
Can I change my coverage after I buy?
Yes. You can upgrade your policy up to 30 days after purchase, as long as your closing is still more than 15 days away.
How much coverage can I get?
Essentials and Essentials Plus offer a coverage total of $25,000, $50,000, $75,000 or $100,000. Comprehensive adds Home Value Protection of $100,000, $150,000 or $200,000. The maximum any policy pays is $250,000.
What happens if my buyer delays or fails to close?
Contact our claims team as soon as it happens. Your claim is assessed under your policy's terms. If it's covered, we fund the legal costs of pursuing the buyer and advance their deposit to you.
Where is Home Closing Insurance available?
Everywhere in Canada except Quebec.
Read more before you decide
Buying your next place too?
Keep your cash free for the next move.
If you're selling and buying at the same time, DepositGuard Surety lets you make your offer on the next home without handing over a cash deposit. Use both products together.
