We’ve all felt the impact of rising costs recently and things are no different when it comes to Ontario home insurance. Get a quote here.
A Stats Canada report from June 2023 showed that home insurance costs across Canada were up 8.2%.
According to Rates.ca, things are even worse in Ontario with home insurance costs rising 10% since the fall of 2021.
What is the main culprit for the rising costs of home insurance in Ontario?
Two words: Climate change.
RISING WATER LEADS TO RISING HOME INSURANCE COSTS IN ONTARIO
A higher probability that your home will experience water damage caused by a flood means the more likely it is that your home insurance company will need to cover a home insurance claim which in turn leads to you being asked to pay higher costs to insure your home.
Need an example?
Since the topography of places like LaSalle Ontario (in the Windsor region) and Keewatin Ontario (up near the border of Manitoba) puts them in low-lying areas, this makes homeowners from both more at risk of experiencing flood damage.
The result is that their home insurance rates have increased more than most other Ontario communities; 15% and 18% respectively compared to the 10% average across the province.
If you live in a similar low-lying area within Ontario, you too are more susceptible to flood risk and water damage to your home.
This makes it more difficult to find affordable home insurance or in some cases, any home insurance at all since some companies are not able or willing to cover homes located in certain high-risk areas.
WHY IS FLOOD RISK INCREASING IN ONTARIO?
Flooding occurs when water volumes increase beyond what rivers, streams and lakes have the capacity to hold.
During heavy rain events, like the ones we see more of lately, these channels overflow and send water along the surface and into people’s homes.
While organizations like the TRCA are doing what they can to help municipalities respond to flooding and while communities are coming up with new and creative ways to deal with the increased flood risk, there’s no hiding from the fact that we’re dealing with more risk of flooding here in Ontario.
WILDFIRES HAVE BECOME A REALISTIC THREAT TO MORE CANADIAN HOMEOWNERS
So far those of us living in the Niagara Region and Haldimand County are lucky enough to not worry so much about wildfire risk, but things can change fast.
Just ask homeowners in Kelowna British Columbia how much they worried about wildfires before the summer of 2023.
Confirmed during a recent interview with CTV Vice President of the Insurance Bureau of Canada Craig Stewart assured Canadians that almost every home insurance policy covers wildfire damage.
However, with so many losses to cover due to an increasing number of catastrophic events across the country, the costs of home insurance are expected to continue rising to try and offset the need for insurance companies to cover these claims.
A report from 2021 saw increasing home insurance costs outpacing inflation with the average annual insurance rate in Ontario climbing 64%.
Only time will tell if these higher costs are the new normal, but one thing for certain: we should all be prepared for some higher-than-expected Ontario home insurance quotes over the next few years.
Erie Mutual Insurance proudly serves the commercial 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.
