How Much Does an Average Home Insurance Cost in Ontario?
Whether you’re buying your first home or wondering whether you’re getting a good deal on your premiums, knowing the average home insurance cost in Ontario is valuable. Keep reading as we take a close look at the numbers along with the factors influencing them.
What is the Average Home Insurance Cost in Ontario?
On average, Ontario residents spend roughly $1,200 each year (or $100 per month) on home insurance. This is at the higher end of the national spectrum, which sees costs ranging between $600 and $1,500.
Why the Average Cost of Home Insurance in Ontario is so High
There are many factors behind the high average cost of home insurance in Ontario. Let’s take a look.
High Property Valuations
According to the Canadian Real Estate Association, homes in Ontario cost an average of $741,395. That makes it the second most expensive province in terms of real estate, behind British Columbia (average house price: $801,039).
Naturally, costlier homes are more expensive to insure against threats like fires and vandalism.
High Occurrence of Insurance Fraud
Ontario is notorious for being home to alarming rates of insurance fraud. This isn’t limited to people firebombing their own apartments, either.
Even subtler types of fraud (like inflating the cost of a stolen item when making a claim) can add up to millions in lost revenue for insurers. Those fraudulent expenses get passed along to consumers, which is another reason Ontario’s average house insurance costs are so high.
Harsh Weather
Across Canada, the cost of weather-related claims hit $1.9 billion in 2018. This isn’t solely related to a spike in natural disasters, either.
According to a report from the CBC, people are also increasingly renovating and renting out their basements. As such, when basements flood, entire homes are now being lost, which results in higher claims.
Once again, these costs get passed right onto the consumer.
Factors That Affect Your Home Insurance Rate in Ontario
If your premiums deviate from home insurance in Ontario’s average cost, the following factors may offer an explanation.
Your Home’s Value
If your home is more expensive, you’ll naturally pay more to insure it since your provider will have to cut a bigger check in the event of a claim.
The Area in Which You Live
If you live in a high-crime area, you’ll end up paying higher premiums to compensate for the added risk. This isn’t limited to poor areas, either; wealthy neighbourhoods can experience high occurrences of break-ins as well.
Your Deductible
A higher deductible will lower your premium – and vice versa. Keep in mind, however, that a higher deductible will also mean you have to pay more out of pocket in the event of a claim.
The Breed of Dog You Own
Believe it or not, certain dog breeds can actually increase your home insurance premium. It comes down to the liability portion of your policy, which covers you against lawsuits in the event that your dog bites someone on your property.
Insurers view certain dog breeds (i.e. pit bulls) as being more dangerous and will charge owners higher rates to compensate. This isn’t the case will all insurance companies, however, and some are laxer than others when it comes to adjusting premiums based on a family pet.
Your Home’s Usage
If you operate a business out of your home, insurers will often charge you higher premiums. Once again, this is to compensate for the higher risks associated with this type of usage.
Liability Limits
Going with a higher liability limit can offer more protection against lawsuits in the event that someone is injured on your property. You’ll pay a higher premium in exchange for this protection.
High-Risk Home Additions
Certain home additions increase the level of risk associated with your home. Pools, for example, are a drowning hazard. Insurers charge higher premiums for homes with pools to compensate for the risk of drowning-related lawsuits.
Your History of Claims
If you have a history of filing home insurance claims, providers may raise your rates. Keep in mind that an extensive history of home insurance claims likely indicates you live in a high-risk area.
If you’ve ever been convicted of insurance-related fraud, you’ll likely also find your rates to be much higher than the average home insurance cost in Ontario.
Tips for Reducing Your Home Insurance Premiums in Ontario
Now that you know the average cost of home insurance in Ontario along with the factors that influence premiums, let’s look at some tips for getting your costs under control.
Compare Rates with Surex
At Surex, we help Ontarians find the best rates on all kinds of insurance. We do this by comparing several providers to find the best coverage for your needs. Our process is much faster and more comprehensive than you’d likely have the time to do on your own.
Learn more about how Surex works here. Once you’re ready for us to get started on a quote, head here.
Bundle Your Insurance
Insurance providers often offer discounts when you bundle your home and auto insurance. If you have these policies with separate companies, call them and find out what the discounted rate would be.
Only Get the Coverage You Need
If you can afford to pay a higher deductible, consider doing so in exchange for lower premiums. Make sure you calculate the risk when doing this and try to keep the deductible in cash via your emergency fund as you never know when you may need it.
Consider Paying for Smaller Claims Out of Pocket
Just because you suffer a loss doesn’t mean you need to make a claim. If you’re able to cover the cost out-of-pocket, it could save you in the long run by maintaining your eligibility for claims-free discounts with your insurer.
Pay Premiums Annually if You Can
Many insurance companies offer a discount if you pay your premiums in full annually. This is well worth considering if you can afford to do it.
Talk to Your Insurance Company
Don’t be afraid to ask your insurance company what you can do to lower your premiums. For example, some insurers offer discounts for customers with home security systems installed.
Frequently Asked Questions
How much does home insurance cost in Canada?
The average house insurance cost in Canada is roughly $800. More affordable provinces help keep this national average low while residents in costlier regions like Ontario pay substantially higher rates.
How much should my homeowner’s insurance be in Ontario?
To get an idea of what your homeowner’s insurance should be, source multiple quotes. Generally, you’ll pay within the ballpark of $1,200 annually.
Who has the best home insurance rates in Ontario?
This really depends on several factors specific to your situation. Insurers weigh factors differently, which can result in one company quoting you more because of, say, your dog’s breed while another disregards that altogether.
