Guide to High Risk Home Insurance in Ontario
No two homes (or homeowners, for that matter) are exactly alike. Some homes are old and located in the country, while others are modern and located in the city. Many homes also differ in quality, size and condition.
Many homeowners understand that these factors, and many others, can affect the price of their homes; but, did you know that these factors can also influence the insurance risk level of your property?
It's true!
Under certain circumstances, you may not be able to get traditional home insurance, forcing you to invest in what's known as high risk home insurance Ontario (also referred to as non-standard home insurance).
START A QUOTEHave you never heard of high risk home insurance before? Be sure to continue reading to learn the basics of high risk home insurance in Ontario.
What is high risk home insurance Ontario?
High risk home insurance is a niche type of property insurance that is intended for properties (or homeowners) that are deemed a "higher risk" than average.
There are countless factors that can potentially influence you or your property's risk level in Ontario (we'll touch on these shortly).
If you or your property have been deemed "high risk", then you should work towards lowering your risk level. This will help you save on insurance and make it easier for you to find coverage in the future.
High risk house insurance Ontario — what factors influence your insurance risk level?
As mentioned earlier, there are several unique factors that can influence the risk level of a policyholder or a property.
Some common examples of these risk factors include the following:
Age and condition of the home
Although most homes are equally likely to get damaged by falling trees, hailstorms, etc., specific living spaces, like heritage homes, are at a much greater risk of collapsing. This makes heritage homes more of a liability than a property built a decade ago.
If you live in a heritage home, put extra effort into keeping nearby tree branches trimmed and away from your home. Doing this can reduce the chances of a branch falling on your roof.
Heritage homes also cost insurers a significant amount more to repair / rebuild. Plaster walls, original wide plank flooring, solid wood trim - all of these items inflate repair costs and many regular markets do not want to take on that responsibility.
Speaking of roofs…
The age and condition of your roof
If you want to reduce your chances of being deemed "high risk", then you should assess the condition of your roof.
Older roofs are at a greater risk of getting damaged by animals, falling objects, weather, etc., especially if it's already experienced a significant amount of wear-and-tear.
Additionally, if your roof is in poor condition, then you're at a high risk of dealing with minor issues, like leaks, and major issues, like a collapsed roof, down the line.
Furthermore, the age of the heating system, type of electrical systems (knob and tube wiring) or type and age of plumbing all can affect whether your home will need to be insured with a high risk company or note.
Insurance claims and payment history
Have you submitted several insurance claims in the past year or two? Did your previous insurance policy get cancelled for non-payment? If so, you'll likely need to purchase a high risk home insurance policy.
As mentioned earlier, your home isn't the only thing that influences your risk level: you impact it as well!
If you've submitted a large number of home insurance claims over the past few years, your provider has likely noticed. Home insurance companies take note of all of the claims that you've made as a policyholder. If you happen to make too many claims in a short period of time, it can have a significant impact on your risk level. Most regular market companies will not keep a policyholder who has more than one claim in three years time-frame.
However, submitting too many claims isn't the only thing; missing payments can lead to insurance cancellation, which leaves a "gap" in your history. Insurance companies see this gap as an enormous red flag.
So, when it comes time to get a new policy from a different provider, you will likely have a hard time finding any traditional forms of coverage.
What other factors influence the price of your home insurance?
Some other factors that influence the price of your home insurance include:
The crime rate in your location
Although Ontario is among the safest provinces in Canada, there's no denying that it experiences its fair share of crime, including break-ins, theft and vandalism.
If your living space is located in an area with an exceptionally high rate of break-ins, theft, vandalism, etc., then your home insurance premium may reflect this. Living in a town or city that has a high crime rate puts a larger target on your property and possessions.
So, to offset the potential risk of theft and property damage, your insurance company needs to increase your premium. This is something that you should keep in mind before buying a new home in Ontario.
History of poor weather conditions
High risk home insurance companies in Ontario use data and past events, like severe weather conditions, to determine the risk level of a policyholder.
If you live in an area that is particularly prone to sudden and severe weather conditions (floods, forest fires, tornadoes, hailstorms, etc.) then your home is more likely to get damaged than a property located in an area that rarely experiences harsh weather conditions.
How can policyholders save on high risk home insurance in Ontario?
There's no denying that high risk home insurance is never cheap. But, that doesn't mean that you have to pay an arm and a leg for property coverage.
If you're looking for the most affordable high risk home insurance Ontario Canada has to offer, you should team up with a reputable insurance brokerage.
An insurance brokerage is a group of insurance experts that work directly with insurance companies and policyholders. By teaming up with a brokerage, like Surex, you get access to several quotes at the click of a button.
Save up to 25% on home insurance when you bundle with Surex
Finding high risk home insurance in Ontario doesn't have to be difficult. When you team up with a reputable insurance brokerage, like Surex, you can save time, energy and money on your home insurance.
We work with several of Ontario's top-rated home insurance companies in order to provide homeowners (like you!) with high-quality insurance at an affordable price point.
Call or click to contact one of our trusted insurance advisors and get started today! While you're chatting with your Surex insurance advisor, don't forget to ask about the benefits of bundling multiple policies with the same provider. The savings can often be as high as 25%!
