Ontarians living near Toronto have the lowest home insurance premiums in the province while those in the Northern and Southern regions are paying the most.
These are the core findings from the RATESDOTCA interactive map tool, Home Insuramap, which generates estimated annual home, condo and tenant insurance premiums for each postal code zone in Ontario.
By identifying premiums based on location, the tool underlines the particular and great need that homeowners in Northern and Southern Ontario have for effective ways to bring down their home insurance costs.
Home Insuramap makes clear that while residents in the Greater Toronto Area have the lowest premiums in the province those in smaller cities are paying the most.
Premiums for cities throughout the Windsor region are especially high as are those in North Western parts of the province such as North Bay, Sudbury, Timmins and east toward Sault Ste. Marie as well as Thunder Bay, Ont.
Highlights:
RATESDOTCA managing editor, John Shmuel, suggests that while location is one of the key factors that home insurance carriers consider when determining a premium, a high crime rate and increasing incidents of severe weather also account for why home insurance is more expensive in smaller cities throughout the province.
“Insurance carriers try to gauge what sort of a risk a home and its owner represent. Regardless of location, a home in a neighbourhood with a higher crime rate or one that has often been affected by severe weather represent a higher risk and the premiums will reflect it.
“Unfortunately, crime rates in Ontario are higher in smaller cities and rural regions, while also facing higher risks from climate change, such as forest fires, flooding and tornadoes.”
Property related crimes in Windsor take place at least six times daily; the local police service reported that, in 2018, there was a break and enter or attempted break and enter once every four hours.
Similarly, in 2020, Timmins police responded to 295 break and enters, compared to 218 the year before.
The effects of climate change are also having a direct financial impact on homeowners across the country. The Insurance Bureau of Canada reports that in the last decade, severe weather in Canada has resulted in claims costs of up to $2.1 billion.
In 2021 alone, a hailstorm in Calgary, AB, wildfires in Lutton, B.C. and a recent tornado in Barrie, Ont. will have resulted in claims costs of more than $650 million.
Insurance companies make money through premiums and investment income.
In a low interest rate environment, when it’s difficult to generate a return on investment, carriers under pressure to cover an increasing volume of payouts – whether from crime or incidents of severe weather – may increase premiums.
Since regulation precludes carriers from easily adjusting car insurance rates, home insurance costs can go up to compensate, as the market doesn’t face the same regulations.
In addition to location, home insurance carriers look at details about your home as well as you, the policyholder.
They’re trying to figure out how likely you are to make any claim and what sort of risk they’ll be assuming by insuring your property.
To bring down insurance cost, homeowners should consider the following tactics:
Increasing incidents of flooding throughout Ontario put your home at risk of serious damage and the costs are often significant.
Most home insurance policies need to be updated with additional protection.
While your policy may protect you against some forms of water damage (such as damage from a burst pipe), assume that you don’t have flood protection.
Be aware that insurance companies recognize several different categories of flooding: overland, sewer back-up and tidal.
We recommend that Ontario residents, regardless of neighbourhood, consider purchasing the former two types.
Other tips to keep homes safe from extreme weather:
*Only cities with a minimum population of 10,000 were included in this report
RATESDOTCA’s Home Insuramap is an interactive online map which allows Ontario residents to see how their home, condo or tenant insurance rates compare to other parts of their city or province.
The estimated home insurance premiums are based on a 45-year-old homeowner, who has been insured for at least 10 years and lives in a 2,500 sq ft house with brick veneer, wood frame construction, natural gas heat, and a roof that is 10-15 years old.
The estimated condo insurance rates are based on a 1 bedroom plus den, 800-1,000 sq ft condo in a high-rise, fire resistance type building constructed after 2007, with $40,000 worth of contents.
The estimated tenant insurance premiums were based on a 2 bedroom, 1 bath, 1,000 sq ft apartment with $35,000 worth of contents and $1-million liability.