Jan 6, 2025
Find out what Ontario homeowners are paying for home insurance
Average home insurance costs in Ontario can vary greatly based on where you live, your home value, how it’s constructed, and many other factors. Post-pandemic economic factors and catastrophic climate events have been driving prices up. Many continued to see an uptick in premiums in 2024, and this trend is expected to continue into 2025.
Ontario home insurance is a vital form of coverage to help you protect your financial well-being, home, and personal contents. Like many other types of insurance, the average costs are on the rise. But, you can take steps to keep your policy costs down.
In this blog, we’ll take a look at the average cost of homeowners insurance in Ontario and the top factors that influence prices.
What you need to know about the average home insurance rates in Ontario
- The average cost for home insurance is $1,411 or $188 per month.
- Many homeowners have seen rates increase by 10% or more at renewal in 2024 and into 2025.
- Keep your costs down by comparing quotes with a broker when your policy comes up for renewal.
What is the average home insurance cost in Ontario?
The average home insurance cost in Ontario is approximately $1,411* per year. This is a payment of $118 per month, based on ThinkInsure customer quote data.
This is an increase from the average annual premium of $1,284, which was based on a 2018 study on home insurance in Canada by JD Power. Ontario is the highest in the country, along with the Atlantic region. Residents in the Western region paid about $1,200. Quebec homeowners paid the least on average at $960 per year.
However, depending on your home value and location, you can expect to pay anywhere from $500 to $3,000, or more annually. Your rates are determined based on your individual situation. Your coverage, plan limits, added endorsements, and other customized coverage will influence your price.
Contact our team to find out how much it will be to insure and protect your home.
Are you paying too much for home insurance? Find out!
Shop around to ensure you are not paying more than the average for home insurance. Compare prices from the top providers or give us a call at 1-855-550-5515. We can help you save more!
What factors affect the average house insurance cost in Ontario?
No two homes are the same. The size, how they are constructed, age, building materials, and your contents insurance all affect the average policy cost in Ontario.
- Location: Your city, postal code, and neighbourhood. Your proximity to a hydrant, fire hall, and emergency services. Claims and crime in your area.
- Home value: The greater your home value, the higher your average premiums. For example, it will cost more to insure a property worth $1 million than one worth $500,000. If you have a luxury home, you should consider high-value home insurance.
- Replacement value: This is one of the most important factors used to determine pricing. Replacement cost factors in materials and labour required to rebuild your home, not the real estate value.
- Coverage limits and add-on: The type and amount of coverage you add to your policy affects cost. Adding policy endorsements such as water damage insurance or sewer backup insurance can increase your rates.
- Construction: The type of electrical wiring, piping, frame, building materials, house and roof age, and recent renovations all affect costs.
- Deductible amount: A higher deductible, lowers costs and a lower one increases costs.
- Endorsements: Adding insurance endorsements increases your level of protection, but they will also increase your average costs.
Why is the average home insurance price in Ontario increasing?
The price of Ontario house policies is increasing because of many economic, environmental, and societal factors. Quarterly rate increases in 2024 were higher than 10% based on reporting from The Canadian insurance industry’s premium rate index.
Here is a look at the top contributing factors resulting in increases:
- Prevalence of insurance fraud: Fraud hurts us all and increases policyholders' costs. Making false claims or claiming more damage than present drives up insurance prices for everyone.
- Weather: There have been a series of catastrophic loss events across Canada in the past few years. Weather damage claims are on the rise, especially from overland flooding and water related damages. They are a significant cost to insurers and this contributes to increasing home insurance costs.
- Increased risk: Higher instances of crime, vandalism, break-ins, and more home insurance claims being filed.
- Economic factors: The cost of rebuilding homes is on the rise. This is largely due to higher inflation and supply chain issues stemming from the pandemic. Lumber and other building materials have gone up in price, and this is reflected in the overall value of homes and the cost to insure them.
- Real estate: Housing prices are increasing. People are building larger and more expensive homes. This increases the cost to insure the property.
How can I lower my home insurance payment in Ontario?
There are a variety of steps you can take to reduce your costs. Here are some effective ways to save:
- Install a security alarm.
- Assess your coverage needs – don’t over-insure.
- Save more when you bundle home and car insurance with the same insurer.
- Increase your deductible.
- Pay your policy annually.
- Think twice before filing a claim for minor damage.
- Compare your options for home insurance from multiple providers.
Average house insurance prices in Ontario vary by location
Location plays a big role in determining the home premiums in Ontario. Your region, city, and even your neighbourhood can affect your monthly premiums.
For example, premiums for Toronto home insurance and Ottawa home insurance are higher compared to smaller towns because of higher average home prices and the increased risk factors of living in the city.
Proximity to fire hydrants and fire stations and whether or not your home is located in a flood plain or area prone to severe weather also impact the costs in the region.
What cities have the highest average home insurance premiums in Ontario?
Based on our customer quote data, here are the top 5 most expensive cities for home insurance:
- Burlington - $1,827
- Markham - $1,604
- Sudbury - $1,570
- Hamilton - $1,531
- Mississauga - $1,510
What cities have the lowest average home insurance rates in Ontario?
Based on our customer quote data, here are 5 of the most affordable cities for home insurance:
- Peterborough - $927
- St. Catharines - $1,043
- Newmarket - $1,077
- London - $1,085
- Brantford - $1,118
Average home insurance cost FAQs
Based on the average cost of $1,411 annually, the average monthly cost of home insurance is just over $118 per month. Contact us to compare your options and get an accurate quote based on your specific needs.
The average cost for homeowners can be significantly more than for condo insurance or tenant insurance. Renters coverage is about $250 to $600 annually or approximately one-third of the cost. Condo policies range from $400 to $800 annually, which is about half of the cost of average home insurance. Your specific cost will vary based on your location, coverage, insurance history, and many other considerations.
The average cost of home insurance is on the rise. As a property owner, you want to get the lowest price possible. A broker can help you achieve this. They can shop the market and see the average cost based on your specific requirements. Then you can choose the best price and save. Plus, they can ensure you get the right coverage to protect your house. So, if you want to reduce your average home insurance cost, speak with us today.
Source
*Home insurance property and premium collected from Ontario ThinkInsure customers from January 1, 2024, to January 1, 2025.
