Blog Average Cost For Home Insurance In Ontario

Oct 26, 2023

Find out what Ontario homeowners are paying for home insurance

Houses on a suburb street

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. So, you may see an uptick in your premiums in 2024 when you renew. How much? Many policyholders are seeing increases in the 5% range.

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, 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's on this page:

What is the average home insurance cost in Ontario?
What factors affect the average house insurance cost in Ontario?
Why is the average home insurance price in Ontario increasing?
Tips to lower your cost for home insurance in Ontario
Average house insurance prices in Ontario vary by location
Average home insurance cost FAQs

What is the average home insurance cost in Ontario?

The average home insurance cost in Ontario is approximately $1,250 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 $2,000 or more annually. Your rates are determined based on your individual situation. Your coverage selection, plan limits, added endorsements and other customized coverage will influence your price.

Not sure how much the average costs in your area? Contact our team to find out how much it will be to insure your home.

Study on the average home insurance cost in Ontario

In 2018, Ontario homeowners had average annual premiums of $1,284. This 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. This is based on a 2018 study on home insurance in Canada by JD Power.

Are you paying above average for home insurance?

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!

Row house on city street

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.

  • 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 that is 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 increase 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. Here is a look at a few of them :

  • Prevalence of insurance fraud : Fraud hurts us all and it increases costs for policyholders. When people make false claims or claim more damage than present, it 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.

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 :

  • 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 what you pay.

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.

Average home insurance cost FAQs

Based on the average cost of $1,250 annually, the average monthly cost of home insurance is just over $104 per month. Average monthly premiums can range from as low as $60 ($700 annually) to over $160 ($2,000+ annually) per month. These numbers are estimates and you can 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 $200 to $300 annually or approximately one-third of the cost. Condo policies range from $300 to $600 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.