The Best Home Insurance in London

Home insurance in London

London, about two and a half hours southwest of Toronto, is the insurance capital of Canada and home to the prestigious University of Western Ontario, as well as many world-class healthcare facilities. London’s population has also been expanding at a rapid rate and grew 10% from 2016 to 2021. This has pushed the city population to about 500,000, expanding the need for housing, and of course, home insurance.

Home insurance in London, like in the rest of the province, is not mandated by law, but you may still be forced to buy it, as most mortgage providers require it.

Types of home insurance in London

There are four major home insurance types, which differ mainly by the amount of coverage they offer and by price. As you might expect, more coverage means higher costs – and vice versa.

• Basic: Sometimes referred to as ‘named perils,’ this is the cheapest type of coverage you can purchase. However, it offers a very limited amount of protection. It protects your property and its contents only against the perils named in the policy. So, if theft, for example, is not listed, then your home is not protected from it.
• Broad: This is a more comprehensive policy that protects things not necessarily named in your policy. For example, if theft is not listed, then the property is protected from it. Note that when it comes to your possessions, they are only protected from the perils named in the policy, same way as they would be under the basic coverage.
• Comprehensive: Also known as ‘all perils,’ this is your most comprehensive coverage. It protects both your property and possessions from all perils, other than a few named exclusions. If, for instance, overland flooding is named as an exclusion, then you’re not covered for it. This is the most expensive type of home insurance you can purchase in London. Even so, you will not be covered for everything, and you should talk to your provider about what things are excluded so you can make an informed decision.
• No-frills: This coverage has even fewer protections than the ‘basic’ policy and is meant for special cases only. If your home is old, for example, and extremely likely to suffer damage due to brittle pipes or poor structural integrity, then it may not qualify for regular insurance, such as basic, broad or comprehensive. No-frills coverage exists to provide protection for such homes. It should be a temporary measure, however, until you address all the issues that disqualify your home from proper coverage.

What gets covered

Regardless of whether you go with basic, broad or comprehensive coverage, it must cover these three things:

• Property: This should include all the structures on your property, such as the home itself, garage and other buildings on the property. The covered perils will depend on your policy – whether it’s basic, broad or comprehensive. But not all structures are necessarily covered. Consult with your insurer to make sure they are to avoid issues later.
• Contents: This entails your personal belongings, such as furniture, electronics, home decor, clothing and so on. Higher-end items like artwork, jewelry and collectibles may require policy add-ons to be fully protected. They are not necessarily part of the normal list of contents. Evaluate everything you own and consult your insurer to see if all your items are covered.
• Additional living expenses: Should you become temporarily displaced due to an insurable peril, this will cover the cost of your living expenses. For example, if you’re forced to live in a hotel while your home is being reconstructed or renovated after an accident, your insurer may pay for your room, travel and groceries for the duration of your displacement (or up to a certain amount). Certain things like groceries or travel will be covered but only if they exceed your normal expense rates.

Liability coverage

Your liability coverage should encompass the following:

• Personal liability: This will protect you if someone gets accidentally injured on your property. The coverage amount can range from $100,000 to $5,000,000, depending on how much you’re willing to pay in premiums.
• Voluntary medical payments: If you unintentionally injure someone on your property, this will pay for the medical expenses for up to a year – from the date of the injury. Your coverage can be as low as $1,000 or as high as $10,000. Find out how voluntary medical payments differ from personal liability coverage.
• Voluntary property damage: If you (or someone in your care under 12 years) cause unintentional loss or damage to someone’s property (such as your neighbour’s), then this will cover the costs. The coverage can be between $500 and $6,000. Find out what scenarios warrant voluntary property damage coverage.

Note that if any of the above are done intentionally (for instance, you intentionally hurt someone), then your liability coverage will become void.

Commonly covered perils

Commonly covered perils in London – whether you choose basic, broad or comprehensive coverage – will usually include these:

• Fire: No matter what causes the fire, your insurance company will cover the costs of replacing, rebuilding or repairing your property and recovering your belongings.
• Lightning: Should lightning strike your property, it could damage the wiring in your walls as well as break your appliances and electronics. This will pay for repairing or replacing whatever ends up damaged.
• Theft and vandalism: If your home happens to get robbed, this will pay for the replacement of the stolen items. The same applies if the home gets vandalized. Again, it’s important to evaluate your possessions so you are properly covered for all contents.
• Water damage: This pays for the damage to your property and belongings caused by water leakage from indoor plumbing, heating, air conditioning, sprinklers and similar appliances inside or outside your house. Certain things, however, are not covered. Most coverages usually exclude sewer back-up and overland flooding, so be sure to confirm what is and isn’t covered with your insurer.
• Hail and wind: Should wind or hail damage your property or belongings in any way, this will pay for them. This includes damage from flying debris as well as falling trees and branches (if caused specifically by hail or wind).
• Falling objects: This protects your property and belongings from falling objects, including space debris and space craft. There are exceptions, however, such as objects moved by landslides or snowslides. Confirm with your provider what is and isn’t covered.

Add-ons to home insurance coverage in London

You can increase your standard home insurance in London with additional coverage – commonly known as ‘add-ons,’ ‘riders’ or ‘endorsements.’ Here’s what usually gets sold in addition to the standard coverage (varies from insurer to insurer):

• Overland flooding: If your home gets flooded due to overflowing water from a river, stream, lake, thawing snow or another body of water, this add-on will protect you. In the last few years, London has become very vulnerable to floods caused by melting snow, storms and rainwater – with the worst of it occurring in 2018 – so this coverage might be useful to have. Get more tips on flood insurance here.
• Sewer back-up: This type of flooding occurs due to backed up sewage pipes, toilets, drains or showers. Such back-ups happen when too much rainwater or melted snow enters the sewer system at once.
• Earthquake: This endorsement will protect your home and possessions from damage due to an earthquake, landslide, snowslide or volcanic eruption. Earthquakes are rare in London and Southern Ontario, as are the other three perils in this category, so it’s unlikely that you’ll need this endorsement.
• Windstorm: A windstorm can wreck your home’s structure, possessions and windows and shower everything you own in debris. Depending on your insurer and policy, you may have this covered from the get-go, but it’s worth inquiring about the coverage just in case.
• Mass evacuations: Should a major peril like flooding or wildfires lead to mass evacuations, this will cover your accommodations and food, while you’re away from home.
• Valuable possessions: Most home insurance policies do not cover items that are of high value, like art or jewelry. Do an inventory of all your possessions and assign monetary value to them. Then talk to your provider to find out if you need extra coverage.

What is not covered by London home insurance

Home insurance in London is effective and necessary but will not cover all events. Certain perils are always excluded – usually because they are both predictable and preventable. Here’s what they are:

• Mold: Since mold occurs slowly due to pre-existing conditions, such as extreme humidity, there is usually enough time for you to prevent it. Home insurance providers expect you to maintain your home and will not cover you for neglected home problems.
• Pest infestations: Like mold, pest infestations, including mice, bedbugs, cockroaches and termites, are also a maintenance concern. So, if they cause any damage, it’s highly unlikely that your home insurance will cover it. That’s why, as soon as you notice an infestation, you should contact the appropriate service to help you resolve the issue (this service shouldn’t be your insurer).
• Deliberate damage or injuries: If you deliberately damage your own property or its contents, your insurance company will not cover the costs. In fact, if you attempt to claim money for damaging your own property, you may be accused of insurance fraud, which is illegal. If you purposely hurt someone on your property, your insurance will not cover the associated liability costs either. Better to think twice before taking this kind of action.

How much insurance coverage do I need for my home in London?

Each person has different circumstances as well as physical homes that require different policy considerations. Given that London has had issues with severe weather and flooding, you might want to get more coverage in those areas. Your specific neighbourhood is also worth considering, since it may have higher crime rates, including more break-ins – or more instances of sewer back-up.

Other factors to consider include the size of your home, the cost of rebuilding it and the value of its contents. The higher the costs the higher the premiums. To learn more, you can consult either with your insurance agent or broker. Alternatively, you can compare quotes from 50+ home insurers right now, using RATESDOTCA. This will provide you with some actual numbers – numbers applicable to your specific needs and circumstances.

What's the average cost of home insurance in London?

According to the 2022 RATESDOTCA Home Insuramap data, the average cost for home insurance in London is $1,243 or about $103 per month.  This is lower than the Ontario annual average of $1,427 by 12.8%. London sits in about the middle of provincial cities in terms of its annual insurance costs.

The city has grown by 10% from 2016 to 2021. With it comes the increased potential for risks such as theft and vandalism. London has also seen more erratic weather and has experienced recent flooding, which, again, can alter the insurance risks and prices for homeowners in the area.

How RATESDOTCA finds the best home insurance in London

RATESDOTCA works with home insurance providers in London to offer you the city’s best home insurance quotes. We quickly collect your information and use it to generate the top offers from each of our partners. Our service is fast, easy and free to use.

By comparing London home insurance quotes from several insurance providers in a single place, you can instantly assess the market and find the best policy to protect your London home.

How to get the cheapest home insurance in London

Getting cheap home insurance in London starts with comparing prices from sites like RATESDOTCA but there are other ways you can add to your savings. Talk to your provider about discounts or adjustments that can be made with a few alterations to your policy or its structure. Here are some examples of how you can do that: 

• Comparison shop. You’ve come to the right place. Comparison shop London home insurance prices on RATESDOTCA and you will have instant access to the cheapest rates from the top providers in your area. It’s free, simple, and fast. 
   
• Bundle services. Insurance companies in London appreciate consumer loyalty. That’s why the more services you bundle from one provider, the more you can save on an entire policy package. Some providers will give you discounts in the neighbourhood of between 20% and 25%. 
   
• Update alarm systems. All insurance companies want to know their risks are reduced. One way you can show that is by updating your alarm system to a monitored system (or getting one in the first place, if you don’t already have one). This reduces the risks of theft and vandalism, which can help you save between 5% and 10% on your policy. 
   
• Increase deductibles. The more you are willing to pay out of pocket for damages to your home insurer, the less risky it is for them to insure you. That’s why agreeing to pay a higher deductible – money you will pay out-of-pocket before the insurance company pays you – can help save you money. Saving your insurance company money makes you a less risky client. 
   
• Upgrade your home. Both newer and older homes have areas where upgrading or renovation can help make the home a more efficient one. Upgrades can help you reduce the risk of flooding or fires, for example, and you will be ‘rewarded’ for your efforts. Renovating, however, can also add costs to your insurance if you are making expensive additions that require even more insurance. 
   
• Apply for discount. It never hurts to ask. Many London home insurance companies offer discounts to groups such as retirees or members of certain associations or alumni groups. Reviewing your policy annually is good practice and also a good time to ask your provider about discounts you are eligible for. 
   
• Get rewarded for your loyalty. Loyalty can bring rewards. The longer you stay with one company, the more rewards and discounts you can get. Stay claims-free, and the discounts can be even higher. Ask your provider about loyalty discounts. 
   
• Keep your credit score high. Home insurance companies in London will drop premiums for people with a good credit score. A lower score identifies you as a responsible customer who pays bills and is likely a minimal risk overall.

What risks do homeowners face in London?

Residents of London are faced with a myriad of weather- and climate-related events. This can result in higher premiums. Also, the population has been growing at a fast pace, and with that, come certain risks facing bigger cities – crime, theft, vandalism and more.

With that said, here are some of the biggest risks London homeowners face:

• Floods: Rain and flooding have become a problem for London residents. Last summer, a small township (practically a suburb of London) declared a state of emergency as a result of flooding. Flood alerts have also been issued in the area last year, increasing risks for London homeowners.
• Snowfalls: Snowfalls are known to cause roof damage, particularly when snow accumulates over time. It can lead to water seepage as well as ice dams – ice build-up in the eaves, caused by melting snow. This year London saw a blizzard that has put significant pressure on its infrastructure and homes.
• Freezing temperatures: Winter temperatures in London can sometimes get very low. This increases the potential for burst and frozen pipes.