Generally, one should distinguish between homeowners insurance and renters insurance (also called tenant insurance). The latter is typically cheaper since it normally covers only your content (e.g. expensive electronic devices) and liability costs (e.g. if you flood you neighbours).
On average, Ontario homeowners pay $780 and renters pay $252, which equates to homeowners paying three times as much to protect their homes. Factors such as location, cost to rebuild the home, coverage size and additional endorsements or riders, such as earthquake or jewelry coverage, can have a big impact on average home insurance costs.
Although the market price of your house does not directly impact what you pay for insurance, it can give you an idea of what you can expect to pay in home insurance costs. In Ontario, a home valued at under $300,000 generally means average home insurance premiums of $702 a year, and homes in the higher brackets, for example between $300,000 and $700,000, can expect to pay around $924 but again, the final numbers will be impacted by other factors.
A more expensive home means a more expensive home to rebuild or a home with more expensive attributes to protect. If your home falls in the $700,000 to $1.5 million range, it’s reasonable to see average home insurance cost in Ontario hit the $1,400 mark annually, and $2,000+ for homes in the $1.5 to $5 million range.
How different are insurance costs across provinces?
As with many things, home insurance costs vary strongly by province. Each province has its own unique geographical challenges and dangers – flooding in Alberta and Ontario, earthquakes in British Columbia and Quebec, storms and strong winds in Atlantic Provinces.
Average home insurance costs in Ontario aren’t typically impacted by things like earthquake coverage. These are insurance add-ons (also called endorsements) that are often added to the insurance policies in British Columbia and, sometimes, in Quebec.
An important world on Overland Flooding
In Canada, overland flooding is a separate risk area for insurance and insurers aren’t typically willing to cover it. In general, it is defined as water entering your dwelling from outside e.g. due to high water levels after rains. It is also important to know that this risk can be also quite high in early spring when snow and ice start melting, resulting in increased water levels.
On the contrary, if water enters your home from inside e.g. due to a sewer backup, this risk can be insured though you should check if your insurance policy includes this coverage. Sometimes it has to be purchased on top of an existing insurance policy.
What factors impact home insurance costs in Ontario?
There are certain home elements that can increase home insurance costs as well. These are important to consider when purchasing a home. Fireplaces, woodstoves, swimming pools, oil-based heating systems can mean higher insurance premiums. Also outdated home elements can drive up your insurance costs such as e.g. old wiring, old pipes, old roofing. Your garden and tree situation can have an impact too, with large trees that pose the risk of falling on the home.
These insights are offered by InsurEye, a Canadian company that provides independent, innovative online services such as consumer insurance reviews, and peer-to-peer insurance premiums benchmark. It also facilitates access to home insurance in Ontario and home insurance BC.
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