Canadian Home Insurance

I see no mention of a compulsory insurance in the small print of my online Bank credit agreement which grants a chattel mortgage on my house. Am I in trouble if I did not insure my house, or if I reduce the coverage to less than the full replacement value. I am in Canada

If it is not contractually required, no you do not need insurance on your house. But you'd better talk to the person who arranged the credit line and to confirm this just to be sure you have misread the contract. Beyond that you're nothing but trouble with yourself in some way, unless you have enough money to rebuild your home on your own saved somewhere. No insurance company will make sure your house for nothing less than the total replacement cost of the home. If you try they will just cancel the policy as they see you as a moral hazard and not worth it. You may be able to get away on a policy of commercial type, but will be difficult to organize and cost you more.