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If you own a home in Ontario, you’re not required by law to have insurance. However, most lenders won’t provide a mortgage unless coverage is in place. As a result, most homeowners have it.
Protecting what is likely your largest asset has both financial and emotional benefits. In the event of a covered peril, you’ll be compensated. With that comes some peace of mind. An additional benefit that some overlook is that most home insurance policies also include liability protection. This means that if someone is injured on your property, you will be protected financially.
If neither benefit persuades you, consider the practical reality of home ownership. Homes in Canada are increasingly impacted by damage from severe weather events linked to climate change. The Insurance Bureau of Canada (IBC) reports that in 2023, insured damage for severe weather in the country hit $3.1 billion. In addition to the record-breaking wave of wildfires that year, Ontario also had to contend with severe summer storms, which cost the province $340 million in insured damage. Furthermore, a spring ice storm that hit both Ontario and Quebec earlier that year cost the two provinces $330 million in insured damage.
When looking at the catastrophic losses from 1983 to 2022, as recorded in the 2023 IBC Fact Book, a clear pattern can be spotted – that insurance losses have risen dramatically over the last three decades, both in Ontario and Canada at large.
For instance, from 1983 to 2000, average catastrophic losses in Canada amounted to $440 million per year (loss and adjusted expenses in 2022 dollars). Between 2011 and 2020, those losses rose to the average of $2.3 billion. In 2020 alone, Ontario had to deal with flooding, windstorms and winter storms on two occasions. First, in January, which cost Greater Toronto, Kitchener, Innisfil, New Hamburg and Montérégie, Quebec, $110 million in damages. And later, in November, which cost southern and central Ontario, including Greater Toronto and Hamilton Area, Niagara region, Lake Erie shoreline, Muskoka region and Lake Ontario shoreline, $108 million in damages. In 2022, Ottawa, Greater Toronto, Kitchener-Waterloo as well as Outaouais, Lanaudiere and Laurentides in Quebec lost $1.3 billion in damages due windstorms and other catastrophic events.
This means that the protection afforded to you by home insurance won’t come cheap. In Q4 2023, for instance, all provinces experienced an increase in premium rate change year over year, with British Columbia seeing the highest rate increase of all – at 11.1%. Alberta, Ontario, Quebec and the Atlantic Provinces fared a little better, with rate changes of 0.7%, 8.3%, 2.5% and 9.1%, respectively. Even so, Ontario sits on the higher end of this spectrum.
So, what can you do as a homeowner? Your best bet is to be more discerning. When shopping for insurance, avoid buying the coverage you don't need. Here, we outline some of the important details you should consider when choosing coverage that’s right for you and your home.
Home insurance usually comes in four different flavours, depending on the amount of coverage you’d like to get – or in some cases, allowed to get (as your home may not be safe enough to warrant standard coverage).
These are the coverage types you’re likely to encounter:
Beyond the standard components of an Ontario home insurance policy, there are additional coverages you can purchase to further protect your home and the contents within.
These are some of the most common home insurance add-ons, also known as riders, that you can add to your home insurance policy:
Even if you have the most coverage money can buy, having opted for every available endorsement, there are some perils against which no policy will protect you. In the insurance world, these are referred to as 'exclusions'.
Common exclusions include:
There are also some perils for which no coverage is available. They’re referred to as ‘uninsured perils.’ For example, if your home is built on a known flood plain, no insurance protection may be available.
RATESDOTCA works with home insurance companies and brokers in Ontario to provide you with a broad selection of quotes. We quickly collect your information and use it to generate the best offers from each of our partners. Our service is fast, easy and free to use.
By comparing Ontario 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 property.
Ontario home insurance companies use a variety of factors to calculate your level of risk. The higher the risk, the more they’ll charge for coverage.
This list outlines the variables that have the greatest impact on the cost of your home insurance policy:
Insurance rates in Ontario are higher for homes located in areas known to flood or identified as flood plains. If you live close to a waterway, you can also expect to pay more for coverage. Even if that river or lake has not overflowed recently, record claim amounts for homes damaged by severe weather have made insurance providers increasingly cautious.
To be fully protected against flood risk, you may need to add different types of flood protection to your home insurance policy. While some insurance providers combine flood coverage into a water protection policy, others distinguish between overland flood protection and sewer back-up protection. Make sure you clearly understand what flood coverage has been added to your policy.
While most home insurance policies will protect against unexpected damage, if it was predictable, your claim may be denied. For example, if someone is injured after falling through a damaged banister, your home insurance provider has grounds for denying coverage. Make sure you attend in a timely manner to any aspects of your home that need repair so you can be confident of being covered, should the need arise.
The replacement cost of your home is a primary determiner of the cost of your home insurance. The more expensive your house is to fix or rebuild, the higher your premiums will be.
The location of your home is factored into your premiums. If you live in an area with a high rate of break-ins, you’ll likely pay more because of the higher risk of theft. If you live next to a lake, you’ll pay more because of the risk of flooding.
Because basements are especially prone to water damage of both internal or external sources, owning a house with a basement means you’ll likely pay more for home insurance.
If your home is old, its electric wiring may be putting you and your loved ones at risk. Houses built in the 1950s and earlier usually use a 60-amp service, which is more likely to cause a fire than the wiring used in newer homes. This increased level of risk may cause your premiums to go up.
Beyond wiring, older homes are more likely to be at risk of plumbing and heating faults, which can lead to water damage or fire
Wood-burning stoves and oil-based heaters can reduce energy costs, but they also increase the risk of a fire.
If you need to replace your roof, it can cost you up to $10,000, depending on the size and type of roof you’re installing. The materials used to build your roof therefore affect your insurance rates.
If you have pets, you’ll need to disclose it to your insurance company. Some pets are considered a liability risk. Certain dog breeds, such as rottweilers, may even cause some insurance providers to decline your application for coverage.
Home insurance providers may offer a discount to homeowners who don’t smoke because they deem the home less likely to be damaged by fire from an unattended cigarette.
Insurance providers consider your claims history to be an indication of how likely you are to make a claim in the future. If you’ve never made a claim before, you may be rewarded with a lower home insurance premium. On the other hand, if you’ve made claims in the past, your rate may be higher.
Standard home insurance policies won’t cover your mortgage payments or property taxes. They may also exclude coverage of certain contents, like fine art, or protection for secondary structures on your property. Before selecting an Ontario home insurance policy, it’s important to understand what is and what is not protected under your plan.
Year | Avg Ontario home insurance premium (CAD) | Year-over-year % increase |
---|---|---|
2022 | $1,487 | 16 |
2021 | $1,282 | 10 |
2020 | $1,164 | 1.2 |
2019 | $1,150 | 20.2 |
2018 | $957 | 4.2 |
2017 | $918 | 0 |
2016 | $918 | 16 |
2015 | $791 | 8.4 |
2014 | $730 | (4.3) |
2013 | $763 | 2.3 |
2012 | $746 | (4.6) |
2011 | $782 |
An increase of about 16% between the 2021 average provincial premium and that of 2022 also has to do with increasing incidents of severe weather, supply chain issues and a labour shortage.
More and more homes in Ontario are being damaged by severe weather. This has resulted in a higher volume of record claims.
Supply chain challenges and a labour shortage have also driven up replacement costs significantly.
For example, if a home covered by a comprehensive policy is damaged by a covered peril, the insurance provider will have to pay more to rebuild the structure because the cost of materials has increased and the cost of labour to complete the build has also gone up. These two factors are also likely to result in the provider having to cover the policyholder’s expenses for longer since they’ll be put up in a hotel for the duration of the delayed rebuild.
According to data from RATESDOTCA’s 2022 Home Insuramap, the average annual cost of insurance for homes in Ontario was $1,487.
City | Premium | |
---|---|---|
LaSalle | $2,411 | |
Windsor | $2,139.47 | |
Hearst | $2,046 | |
Foleyet | $2,046 | |
South Porcupine | $2,046 | |
Keewatin | $2,033 | |
Fort Frances | $2,023 | |
Val Caron | $2,005 | |
Elliott Lake | $2,005 | |
Kapuskasin | $2,005 |
City | Premium | |
---|---|---|
Ajax | $1,068 | |
Stratford | $1,071.50 | |
Cambridge | $1,081.40 | |
Whitby | $1,093.33 | |
Holland Landing | $1,094 | |
Guelph | $1,098.22 | |
Waterloo | $1,102 | |
Kitchener | $1,102.60 | |
Concord | $1,104 | |
Stoufville | $1,104 |
Premiums for homes located near water were significantly higher. For example, the average annual home insurance rate in LaSalle, Ontario, near Windsor, was $2,411 in Ontario. The Windsor region is very flat and prone to flooding. The LaSalle neighbourhood is on the shores of The Detroit River.
As more and more Ontarians are affected by climate change, insurance providers are increasing their rates to ensure sufficient funds are available to cover more and more record claims being made by homeowners across the country.
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Got more questions about Ontario home insurance? We got you covered.
While there's no definitive 'best' home insurance provider in Ontario, comparing quotes is definitely the best way to find a home insurance policy that fits your needs. To find the best quote, compare offers from as many Ontario home insurance providers as possible with RATESDOTCA. We work with some of the most trusted home insurance providers in the province to find you the cheapest Ontario home insurance policy on the market.
No, fire insurance is not mandatory in Ontario nor is home insurance. However, most lenders will only mortgage properties that are protected by home insurance. Even the most basic, least expensive home insurance policy is likely to protect against accidental fire damage. This includes incidents such as lightning strikes, gas leaks, faulty electrical wiring, kitchen fires, candles, cigarettes, or even seasonal wildfires.
Speaking of wildfires, 2023 broke the record in terms of the total are burned, with more than 18.5 million hectares of land affected. Though Alberta and British Columbia typically get hit the hardest, Ontario saw a significant impact that year as well, with Toronto and the rest of southern Ontario ending up covered in smoke. Luckily, despite the record-breaking numbers in 2023, most Ontarians are unlikely to lose their home to a wildfire, as most wildfires occur far away from densely populated areas. The more worrisome trend is the increased risk of flooding in southern Ontario, which cost the province almost $1 million in insured damage in 2024 alone.
Homes in Ontario are vulnerable to the increasing volume of severe weather events taking place across Canada. Adding to the risks is how many neighbourhoods are developed near lakes and rivers. If your home is located near a waterway, we strongly encourage you to add flood protection to your home insurance policy to make sure that you’re protected in the event of an overland flood or sewer back-up.
Homeowners in Ontario, particularly in the Ottawa area, may also consider adding earthquake protection to their policies. While earthquakes are not common, they have taken place. In 2010, an earthquake in the Ottawa area, which measured 5.0 on the Richter Scale, caused significant property damage, including gas main breaks, a bridge collapse and significant property damage to homes near its epicenter.
Given that 2023 saw a record-breaking wave of wildfires throughout Ontario, fire damage and evacuation orders may become more prominent down the road. Luckily, this one is covered by most insurance policies by default.
Finally, Ontario, like many eastern provinces, is at risk of derechos, strong winter storms and bomb cyclones, all of which can cause severe damage to your home, particularly your roof and windows. In 2022, Eastern Canada saw several such weather events, and it is expected that they will only increase in frequency and severity. So, make sure you have full coverage when it comes to extreme weather.
It depends. Most house insurance policies require a 12-month commitment. Once this period expires you may switch to a different provider without penalty. If you decide to cancel an existing policy before it expires, you may be required to pay an early cancellation fee.
Your home insurance policy may offer limited coverage for Airbnb guests, but you need to confirm this with your insurance provider before using your home as a rental property. In most cases, additional coverage will be required. If you don’t disclose that you’re renting all or part of your house to guests, your insurance provider may void your policy.
*Shoppers in Ontario who obtained a home insurance quote on RATESDOTCA from January to December 2022 saved an average amount of $500. The average savings amount represents the difference between the shoppers’ average lowest quoted premium and the average of the second and third lowest quoted premiums generated by RATESDOTCA. Excludes tenant and condo insurance.
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