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You need a lawyer to send a letter to the legal department of the MTO and find out exactly what happened.
It sounds like there may be some mistake in the system where you either should not have your licence suspended or at least if it should be suspended you were not told about it and given a chance to rectify the situation before driving with a suspended licence.
The damages you suffered are terrible of course but you won't be able to get a court to require them to compensate you for all of them.
The damages have to be reasonable and foreseeable and it is not foreseeable that you would lose your house because of this suspension. But you would be able to get your licence reinstated and all fines and penalties waived and if this does not address your insurance issue they would be liable to compensate you for this as well.
I suggest that your next step should be to consult with a lawyer face to face.
You can contact the Law Society and use their Lawyer Referral Service. You will be given the name of a lawyer and can consult with the lawyer and the first half hour will be free.
The number is:
1-***-***-**** or(###) ###-####(within the GTA)