How Much Is Home Insurance In Ontario? An All-Around Guide

Home insurance is a necessary evil for all homeowners. Although nobody wants to think about the potential disasters that could befall their property, it’s essential to have adequate coverage in case something does happen. 

But since the average cost has been increasing in recent years, how much is home insurance in Ontario now, what affects the price, and can you reduce it?

Let’s find out!

How Much is Home Insurance in Ontario?

According to a survey of more than 2,000 home insurance policies, the average home insurance in Ontario is approximately $1250 per year or just over $104 per month. Moreover, tenant insurance ranges from $180 to $300 annually, while condo owners pay about $345 per year on average. 

*These prices are from surveys conducted in 2021 and may have since seen a slight increase.

However, not all cities in Ontario pay the same insurance. Here’s how the price changes across different locations: 

City Average Insurance Cost Per Year
St. Catherines $2,862
Val Caron $2,280
Toronto $2,169
Hamilton $2,168
Newmarket $1,726
Brantford $1,669
Woodbridge $1,616
Burlington $1,568
Waterloo $1,524
London $1,493
Brampton $1,459
Mississauga $1,244
Thunder Bay  $1,223
Kingston $1,202
York $1,190
Cambridge $1,188
Milton $1,156
Stoney Creek $1,065

As you probably already know, the cost of your home greatly impacts the price you pay for home insurance in Ontario. Let’s look at the numbers:

Home Value Average Cost of Insurance
$300,000 $750
$500,000 $1,000
$700,000 $1,200
$900,000 $1,250
$1,000,000 $1,500

Although the focus of this article is Ontario, it’s beneficial to compare the home insurance cost of other Canadian provinces (excluding the Northwest Territories, Nunavut, and Yukon because of a lack of data):

Province Average Annual Cost Average Monthly Cost
Alberta $1,000 $83
British Columbia $924 $77
Manitoba $1,032 $86
New Brunswick $781 $65
Newfoundland and Labrador $780 $65
Nova Scotia $782 $65
Prince Edward Island $781 $65
Quebec $984 $82
Saskatchewan $1,100 $92

From the table above, you can ascertain that Ontarians pay the highest house insurance rates, followed by residents of Saskatchewan. On the other hand, citizens of Newfoundland and Labrador can expect to pay the lowest rates for their home insurance. 

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What Affects The Cost of Home Insurance in Ontario?

The price tettered to home insurance might seem like a lot, but you must remember that many factors contribute to the overall cost. Here are some of them!

Home Value

The more your home is worth, the more it will cost to insure. Typically, this is because larger and more expensive homes have more valuables, thus there’s more at stake if something happens. Insurance companies can estimate the value of your home through specialized software, so they don’t depend on homeowners for calculations. 

Replacement Value

When determining home insurance premiums, insurers have to calculate how much it would cost them to rebuild your home if it’s destroyed or has suffered through catastrophes. Usually, this number is higher than the home’s market value because it considers the cost of materials and labour.

Therefore, the higher the replacement value, the higher the cost of your home insurance. 

Location

As you saw from the tables above, the city you live in plays a huge role in your insurance cost, so home insurance in Toronto and in Waterloo may differ greatly. But did you know that the neighbourhood in which you reside is also important? 

In fact, house insurance rates are much higher if you live in a rougher neighbourhood (with a higher crime risk) or one with a high number of previous claims. Usually, insurers use past claims to gain insight into the neighbourhood and gauge the likelihood of future claims.  

Coverage Limits and Add-ons

The amount of coverage you need will expectedly affect your premium, as will any extras you decide to add on, such as flood or earthquake protection. Of course, any policy endorsements will increase the basic coverage rates, so before adding anything and everything to your insurance, talk to a professional so they can tell you what you need.  

Fire Hydrant Proximity

Insurance companies pay mind to how close your home is to a fire hydrant. Generally, if there is a hydrant within 300 metres of your home, insurers would consider it safer. This is because first responders can usually reach your house quickly in the event of a fire, preventing extensive damage to your property, and avoiding higher costs for insurers. 

Construction

Believe it or not, what your home is made of and what materials were used can also significantly affect your property insurance in Ontario. So, before giving you your rates, insurers will consider the type of electrical wiring and plumbing your home has, the age of your roof, whether or not you have wood stoves that can cause a fire, the type of pipes, and any recent renovations.  

Deductible Amount

If you have higher deductible costs, you will incur a lower cost of insurance, so you’ll have to pay more out of pocket to make a claim. Alternatively, if you have a lower deductible, you’ll have to pay a higher insurance price, because this also increases your premium. 

Why Is The Average Home Insurance in Ontario Increasing?

If you’ve previously personally dealt with home insurance, you can attest to the fact that the costs have been on the rise recently. 

But why is that so? Is it because of inflation? Well, yes, but there are also other culprits, such as the ones below. 

Insurance Fraud

In a time when decency can be hard to come by and money is scarce, many people resort to making false or exaggerated claims in order to collect more from their insurers. However, these petty attempts hurt everyone else and consequently drive up the prices for all other insured properties.   

Weather Damage Claims

Climate change has done a number on countless properties around the globe. With such unpredictable weather conditions, many homes in Canada have also suffered losses and consequences. 

In fact, insured damage for severe weather across all of Canada reached a staggering $2.1 billion in 2021, for 12 separate incidents, according to the Insurance Bureau of Canada. Out of this, the British Columbia floods and the Calgary hailstorm accounted for $515 million and $500 million, respectively. 

Therefore, more homeowners are making claims for wind storms and water damage, which will ultimately raise costs.   

Crime Risks

Vandalism, break-ins, theft, and other instances of crime significantly increase the cost of insuring your home. Unfortunately, property crime is still one of the most recorded offences in most cities in Canada. Although property offences declined 3% in 2021, there is still much to be done in terms of protection. 

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Tips to Reduce the Home Insurance Cost

Now that you know why home insurance quotes in Ontario cost as much as they do, you can arm yourself with the relevant knowledge about what to do to reduce the price. Here are some helpful money-saving tips:

  • Install a security alarm which will make your home less attractive to burglars and could earn you a discount on your premium because you have your own protection
  • Assess your coverage needs to ensure you’re not buying more coverage than you need and unnecessarily increasing the cost
  • Bundle home and car insurance with the same insurer which can save you up to 50% on home insurance and up to 20% on car insurance
  • Increase your deductible so you can lower your premium if you ever need to make a claim 
  • Pay your policy annually so you can skip the administrative costs and wait times incurred with monthly payments
  • Be careful when filing a claim for minor damage because some insurers will raise your rates if you file too many claims for small repairs
  • Compare quotes so you can find the cheapest home insurance that covers everything you need 

By following these tips, you can rest assured you’re getting adequate coverage without paying exorbitant amounts. 

Conclusion

Since home insurance in Ontario is a necessary expense, it’s beneficial to know how to keep costs down. By being aware of the factors that affect your premiums and by taking conscious steps to reduce them, you can save a nice sum on your insurance without compromising your coverage. 

So what are you waiting for? Get covered!

FAQ

Why is home insurance so expensive in Ontario?

Home insurance in Ontario is expensive because of exceptionally high inflation rates, pandemic-related supply chain issues, frequent extreme weather conditions, and the prevalence of insurance fraud.

How much is average home insurance in Canada?

The average home insurance in Canada costs approximately $960 annually or $80 monthly.

Is home insurance mandatory in Ontario?

Home, condo, and renters insurance are not mandatory in Ontario or anywhere in Canada. However, many banks, mortgage lenders, and landlords will require proof of insurance before doing business with you, so it’s best if you have it on hand regardless.

How much is home insurance in Ontario monthly?

As the average house insurance cost in Ontario is $1,250 annually, Ontarians pay about $104 monthly for insurance.

ABOUT AUTHOR

When Biljana first started off her career, she was focused on economics, which was also her area of professional study. However, in time, she started to familiarize herself with the concept of insurance, which instantly struck a chord, allowing her to constantly upgrade her knowledge and eventually become an insurance aficionado. When she's not writing, she loves to go on hikes and explore various natural surroundings.

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