Hi Erinn, to some extent the answer will depend on your insurance provider. I'm in Ontario as well. When I was with Allstate, my annual homeowners rates only changed by about ten dollars per year. (I told them I was running a home daycare and I voluntarily increased my liability to 3 million; as long as I was caring for no more than three daycare kids, my home daycare was covered) When I wanted to expand my business, I had to transfer my home insurance to State Farm - Allstate wouldn't cover me for a daycare where I was caring for more than three children. My agent (from State Farm) came out to take a look at my daycare - it allowed her to verify the information I had given her regarding the square footage of my home, and she helped me to decide what an appropriate amount of flood damage coverage was (since my daycare nap time room is in the basement) All said and done I pay a little bit more than I would for regular homeowners insurance, but it's not a lot more; and since I can write off a portion of my insurance on my taxes I don't really sweat it. If it were me, I'd get some quotes from a few different insurance providers and go from there. =)