While the housing market in Niagara started cooling off during the summer of 2022, the average cost of purchasing a home in St. Catharines is still much higher than it was just as recently as 2020.
In January 2021 the average cost of a new home in St. Catharines was $527,000 compared to $790,000 in January 2022. (1)
Does this impact what St. Catharine’s homeowners pay for their home insurance?
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HOME REPLACEMENT COST INSURANCE
Included within most home insurance policies is the concept of replacement costs.
This means that if you were to experience a total loss fire, the costs equal to the value of restoring your home would be covered by a home insurance claim.
Naturally, as the value of your home increases so does the replacement cost amount and this could mean increases to your home insurance policy for providers to cover these increased claim expenses.
So if you own a home in St. Catharines whose value has increased in recent years you may have also noticed your home insurance costs increasing along with it. It may not be a direct result of the real estate market, but the increased cost of building materials has a major impact on the cost to an insurer to rebuild or repair your home. A person can pay $500,000 or $700,000 for the same house depending on the real estate market but the cost to rebuild the same home is unchanged regardless of what they paid.
WHAT MAKES ST. CATHARINES SUCH AN ATTRACTIVE PLACE TO LIVE?
Many of the same reasons that make running a business in St. Catharines so appealing also apply to owning a home in St. Catharines.
Its central location in the heart of Niagara, its proximity to the beaches of Lake Ontario and major municipalities like Toronto, Niagara Falls and the US border plus all of the wonderful events and entertainment options (including the annual Niagara Wine Festival) all contribute to making the City of St. Catharines, AKA The Garden City, a great place to call home.
HOW MUCH DOES HOME INSURANCE COST IN ST. CATHARINES?
The average cost for home insurance in Ontario is said to be within the $1,250 – $1,400 range (2).
Much like other Niagara municipalities such as Welland, Pelham, Port Colborne, Niagara Falls and Grimsby, St. Catharines is not an outlier and likely also falls within this range as well.
However, that’s not to say some homeowners are paying outside of this range.
Since each home insurance policy is unique based on factors like:
- where it’s located
- how old is the home is
- what type of heating is used
- when was the roof last replaced
- which security systems are in place
- proximity to fire hydrants
- your claims history
Etc.
The best way to know what you should be or will be paying is to obtain several different home insurance quotes from reputable insurance providers who serve your area.
HOW TO LIMIT YOUR CHANCES OF HAVING TO MAKE A HOME INSURANCE CLAIM
A home insurance claim could stem from any number of scenarios ranging from a liability insurance claim for a dog bite or trampoline accident to a total loss fire or roof replacement.
Below are some ways to help you avoid the most common types of home insurance claims in Canada.
FLOOD WATER DAMAGE
Floods and leaks are usually most often the cause of home insurance claims.
To prevent this, make sure your ageing roof is repaired or replaced and have your plumbing professionally inspected and serviced routinely to help avoid water-related disasters.
DAMAGE FROM HAIL
While there’s not a whole lot you can do to prevent hail damage since there’s usually no warning of when it’s expected, there are some things homeowners can do which will help
- Consider window protection
- Maintain your roof
- Park your vehicles in a covered area
- Keep eaves troughs clear
FIRE
Fire is often the most devastating form of damage a home and family can experience. Not only because of its indiscriminate destruction of the property itself but even more so due to its ability to take lives.
All homeowners should follow all the common fire safety tips such as:
- Ensuring extinguishers are in working order and that everyone knows how to use them
- Replace smoke detector batteries often test them every few months
- Always monitor kitchen cooking and remember to turn off burners
- Have a fire escape plan for everyone in the family, including the pets
- Keep space heaters away from anything that could catch fire
- Never smoke inside!
- Keep the BBQ away from the home
- Limit the use of candles
TREES
Falling trees due to strong winds or a bolt of lightning are another common cause of home insurance claims but they could be the easiest to avoid.
Large trees that overhang any structure on your property (including a shed, fence or garage) should be routinely trimmed back or even removed (or moved) altogether if they pose a big enough threat.
Erie Mutual Insurance proudly serves the small business insurance, farm insurance, home insurance and auto insurance needs of members throughout Southern Ontario including Haldimand, Niagara and Hamilton.
Please don’t hesitate to contact us with any questions you may have about this or any other topic related to your insurance.
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SOURCES
1 – stcatharinesstandard.ca
2 – westernfinancialgroup.ca
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