How Much is House Insurance in Ontario?

Published On: May 30th, 2022Categories: Personal Insurance

For Canadians, owning a home is the biggest and best investment they will ever make.

Would you want to risk that investment by not protecting it? Home insurance costs are a small price to pay to protect the value of your home and guarantee the financial security of your family. 

You might be planning a move, buying a home or shopping around for competitive rates. In any case, getting the right house insurance is essential. 

But, how much is house insurance in Ontario? Read our guide below for everything you need to know about the cost of home insurance in the area. 

Why Do I Need Home Insurance?

For many people, their homes are their primary source of savings.

This is why it is important to take out house insurance—to protect your investment and, in some cases, your life savings. To secure the value of your home and the equity you have in it, every homeowner must have a good insurance plan

If you have a mortgage, many banks require that the home be insured, for the structure itself at the very least. 

What Does Home Insurance Cover?

Every insurance plan is different. But there are several things covered in most home insurance plans. 

Coverage for Damage to Main Building and Additional Structures on Your Property 

Home insurance includes property coverage as a way to cover any costs of repair or replacement in case of damage. This coverage also includes fences, decks, sheds, guest houses, detached garages or other additional features of your property, provided they are included in the policy. This is a crucial part of home insurance, as this will protect you from a potentially devastating financial crisis in the case of damage from a fire or other causes.

Living Expenses If Home is Damaged

If your home incurs structural or fire damage and is temporarily unsafe to live in, your insurance policy will pay for the cost of alternate accommodation. Most will cover hotel and food for a predetermined amount of time. 

The Content in Your Home 

When you add up the value of all of your furniture, clothing, appliances, electronics, sports equipment etc., it is easy to recognize the importance of having it all covered in your insurance plan. Jewellery, antiques, artwork and other items of value will require extra coverage.

Liability Insurance

Having liability insurance is just as important as having insurance that covers your building and your belongings. It will protect you and your family from any lawsuits stemming from someone suing you for damage to their property or an injury. Liability insurance would cover legal bills, settlements, or court mandates. 

How Much Is House Insurance in Ontario?

For people living in Ontario, the average cost of house insurance is $1365 a year on average, which comes to approximately $114 per month. It’s important to remember that these costs will vary greatly between homes and between regions. 

The Ontario regions with the highest insurance rates are the GTA and Niagara, York, and Halton regions. The average annual home insurance cost in these areas is $1550.

The Ottawa, Waterloo, London and Hamilton regions have some of the lowest insurance rates in Ontario. These regions have an average annual home insurance cost of $1180. 

However, these are average costs for home insurance, so your actual cost will depend on many factors. 

Factors That Influence House Insurance Costs

Your insurance company considers many factors when quoting you on the cost of house insurance. Here are some of the factors they will consider:

The Cost to Replace Your Home in Its Entirety

The main factor in determining the amount of your home insurance policy is how much it would cost to rebuild it if it was destroyed. The current value of your home, its square footage and the construction materials required to rebuild will be considerable factors in the cost of your insurance.

The City and Neighbourhood You Live In

In Ontario, where you live is an important factor in determining home insurance rates. Your insurer will use details about the type, cost and number of past claims in your neighbourhood that might impact your insurance.  

Your Credit Score

Premiums may be lower when you have a high credit score.

The Age of the Roof

If your roof is over 20 years old, there is an increased risk of leaks and damage to the home. You would see your insurance premiums increase as a result. 

Type of Plumbing and Electrical Wiring

Old plumbing made from galvanized or lead pipes and certain types of electrical wiring in your home carry a greater risk of damage. These may increase the likelihood of leaks, cracks or fire damaging your home. Your insurance company may request an inspection to calculate the risk. 

Your Past Claims

Past claims may influence the cost of your premium. Your insurance company will use your past claims to factor in future risk.

Security Systems

If your home has an alarm or monitored security system this may save you some money on your home insurance. Many of these systems alert the fire department and police department in case of fire or theft. This decreases the risk and, therefore, also decreases the risks and the amount you will have to pay for insurance.

Extra Coverage

Any high-value items should have additional insurance coverage. The value to replace such items is higher, so having the right coverage is important. 

Some people also prefer to have additional coverage for earthquakes, overland flooding or sewer backups. 

Home Insurance Quotes

How much is house insurance in Ontario? The only way to find out is to contact an insurance professional. Once they have all the specifics about your home they will be able to give you a detailed home insurance quote. 

For professional and personalized insurance services, contact our team at Bryson Insurance. We are here to help you with any of your personal, business, or specialized insurance needs and answer any questions you may have.

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Written by:

Kyle Paterson
Kyle believes that insurance is a tool, when powerfully leveraged best ensures the vision of business leaders and families are realized. Kyle focuses on cyber risk transfer, group benefits, and corporate and individual life insurance solutions.


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