Blog Average Cost For Home Insurance In Ontario

Feb 27, 2020

Find Out What Ontario Homeowners Are Paying For Home Insurance

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Average home insurance in Ontario can vary greatly based on where you live, your home value, how it’s constructed, and many other factors.

One thing is for sure 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, there are steps you can take 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 rates.

What Is The Average Home Insurance Cost In Ontario?

The average home insurance cost in Ontario is approximately $1250 per year. This averages out to just over $104 per month.

However, depending on your home value and location, you can expect to pay anywhere from $700 to $2000 or more annually.

Not sure how much the average costs in your area? Contact our team to get an estimate.

2018 Average Home Insurance Cost In Ontario

In 2018, homeowners had average annual premiums of $1,284. This is the highest in the country along with the Atlantic region. Quebec homeowners paid the least on average at $960 per year. This is based on a 2018 study on home insurance in Canada by JD Power.

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What Factors Affect The Average House Insurance Cost In Ontario?

No two homes are the same. The size, the way they are constructed, age, and your contents insurance all affect the average policy cost in Ontario.

  • Home value : The greater your home value, the higher your average premiums.
  • Replacement value : This is one of the most important factors used to determine rates. 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.

Why Are The Average Home Insurance in Ontario Increasing?

The price of Ontario house policies is increasing as a result of many factors. Here is a look at a few of them :

  • Prevalence of insurance fraud : Fraud hurts us all and it increases costs for policyholders.
  • Weather : 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.

Tips To Lower Your Cost For Home Insurance In Ontario

There are a variety of steps you can take to reduce your costs. Here are some effective ways to save :

Average House Insurance Rates In Ontario Vary By Location

Location plays a big role in determining the average rates in Ontario. Your region, city, and even your neighbourhood can affect what you pay.

Toronto home insurance and the Ottawa home insurance quotes 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 rates in the region.