The Best Home Insurance in Thunder Bay

Home insurance in Thunder Bay

Thunder Bay, located on Lake Superior, is one of Ontario's cheapest places to buy a home. According to the Thunder Bay Real Estate Board, the median sale price for single detached homes was $350,000 in the third quarter of 2023, compared with the provincial average of $851,756.

Despite the relatively lower price for homes compared to bigger cities, protecting your house and your belongings should be considered part of the cost of owning or purchasing that home.

While home insurance is not mandatory in Ontario, most financial institutions will not provide a mortgage without it. That is why you'll want to purchase home insurance for your property.

Below are the types of home insurance you can get in Thunder Bay, including the most common and additional coverages.

Types of home insurance in Thunder Bay

These are the most common types of home insurance coverage in Thunder Bay.

Homeowners can select insurance from these three insurance packages depending on their specific needs and coverage required:

• Basic – This is generally the least expensive home insurance policy in Thunder Bay and covers so-called 'named perils' in your policy, such as fire and wind. Because it is the cheapest policy, it generally provides the least coverage for your home.
• Broad – This protects your home against all risks or perils unless they are expressly excluded from your policy. However, your insurance policy may not cover the contents of your home unless the peril that causes the damage is specifically named.
• Comprehensive – This is the most expensive home insurance policy in Thunder Bay, mainly because it protects your home and its contents from all insurable perils.

Home insurance coverage

• Property and building – As its name suggests, this type of coverage protects your home (the structure of it) and other structures on your property. Generally, you are protected from theft, fire, vandalism, storm damage, and water damage, to name a few. To ensure secondary structures like a garage or guest house are protected, it's best to talk to your insurer.
  • Coverage amount: Replacement cost of your home (according to your insurance company’s estimate).
    
    
• Contents and personal property – If you want to protect the contents of your house in Thunder Bay from theft, damage, or vandalism, including home décor, clothing, and other items you may own, you will need contents and personal property coverage. You may want or may require additional coverage to protect more valuable items such as family heirlooms, jewelry or fine art.
  • Coverage amount: 70% - 80% of replacement cost, but varies depending on depreciation.
    
    
• Additional living expenses: There are times when damage to your home can force you to vacate your premises temporarily. There may also be disasters that require governments to force evacuations. You may need this protection to cover your temporary housing costs in those cases. Additional living expenses coverage can help pay for hotel stays while you are waiting to return to your home, commuting costs, or even food up to certain limits. Talk to your provider about specific coverage.
  • Coverage amount: 20% - 30% of replacement cost

Liability coverage

• Personal liability – Personal liability protects you from third-party injuries that may occur on your property. This type of coverage is important because the costs of a lawsuit can be pretty high if you are not protected.
  • Coverage amount: $100,000 is offered by default
  • Recommended coverage amount: $1,000,000 (but you can go as high as $5,000,000)
    
    
• Voluntary medical payments – Accidents happen, and when they do, there is a potential for someone to injure themselves on your property. This insurance will cover the medical expenses for one year from the accident date.
  • Coverage amount: $5,000-$10,000 with no deductible
    
    
• Voluntary property damage – Just like accidental injuries, there may be times when you cause unintentional damage to someone else's property. This coverage will help you pay for any unintentional direct loss or damage you cause to someone's property. It also covers accidental loss or damage to someone else's property by a minor (12 years or under) in your care.
  • Coverage amount: $1,000 (but can vary between insurance providers and go as high as $6,000)

Add-ons to home insurance coverage in Thunder Bay

While the policy types mentioned above cover a lot of ground, there are additional protections you can purchase both for your home and its contents.

The following are examples of add-ons or riders you can add to your Thunder Bay home insurance policy for even greater protection:

• Overland water – Many areas within Ontario can experience flooding from the many lakes and waterways. There is also the threat of melting snow in the springtime. This add-on helps protect against damage from this type of overflowing water.
• Sewer back-up – Protects your home when a main sewer backs up, or water from downspouts, septic tanks, drains, and eaves troughs causes damage.
• Earthquake – Covers losses or damage caused by an earthquake. This coverage makes more sense for people living on the West Coast, where there is a potential for earthquakes to cause structural damage to your home.
• Mass evacuation – A catastrophic weather or other event which causes the need for a mass evacuation comes with expenses for temporary housing, commuting and even everyday necessities like food. This coverage would help pay for some of that. It is best to talk to your provider about how much coverage you can get.
• Identity theft – Covers the cost of replacing important documents, such as your passport.
• Lock replacement – This add-on provides coverage if you need to replace the locks on your house.

What risks do homeowners face in Thunder Bay? 

Home insurance throughout Canada is relatively similar, but many cities have unique factors contributing to the cost of a policy in that region. In Thunder Bay, these factors include:

• Freezing temperatures. Canadian winters, especially in Northern Ontario, can wreak havoc on pipes, causing them to freeze and burst.
• Flooding and water damage. Because of Thunder Bay’s proximity to Lake Superior, flooding can occur. Also, heavy snowfall can do damage to roofs and other structures. Snow thawing can be equally threatening, especially to homes with basements.
• Sewage pipe backup. A home’s pipes can get clogged or backed up if the main sewer lines become clogged. This can do significant damage to a home.
• Forest fires. Thunder Bay experienced extensive forest fires in the summer of 2023. Proximity to such emergency events can cause fire or smoke damage. It can also force evacuations if fires get too close.
• Attic rain. Fluctuating temperatures and improper ventilation in your attic can create freezing in the winter and melting in the spring. The resulting water then trickles down into the rest of your home, causing stains, structural damage, leakage around electrical fixtures and black mould.

Typical home insurance in Thunder Bay will cover your personal belongings (appliances, home furnishings and some electronics) and protect you from personal liability if you’re sued by someone injured on your property.

Certain perils are also covered by standard insurance policies, including:

• Fire
• Lightning
• Water damage
• Wind
• Aircraft or vehicle impact
• Explosion
• Smoke (caused by cooking devices or heaters, but not fireplaces)
• Theft and vandalism (such as broken windows)
• Falling objects (except if caused by an earthquake, landslide or snowslide)

There are certain perils that standard Thunder Bay home insurance policies won’t cover. In these cases, add-on protection may be available for an extra charge. Examples of non-standard coverage include:

• Renting all or part of your property to long or short-term guests.
• Liability for clients or customers visiting a home-based business.
• Natural disasters, such as earthquakes and landslides.
• Specific types of water damage including sewer back-up and overland water flooding.
• Certain weather issues in winter, such as damage to the outside of your home caused by freezing and water damage (due to frozen or burst pipes).

Insurance will not cover the following under any circumstance:

• Injuries or damage caused either intentionally or by illegal activity.
• Damage caused because basic measures of protection and maintenance have not been taken.
• Damage from insects and rodents.