If you’re looking for a short answer, there have been some conclusions drawn as to what the average cost of Ontario home insurance is. Click here to learn more about home insurance.
For example, Canadian Real Estate Wealth says that Ontarians pay an average of $1,400 per year ($120 per month) for their home insurance.
While Rate Hub found home insurance premiums ranging between as low as $446 per year up to $9,503 per year.
The reality is that this answer evolves as time goes on so what was true in 2022 may not apply in 2023 and beyond.
It’s also a somewhat meaningless question since what the average someone pays to insure their house within an area of land as massive and diverse as the province of Ontario may ultimately mean very little to you personally.
HOME INSURANCE COSTS THROUGHOUT ONTARIO
One of the biggest factors that determine what you should expect to pay for home insurance is which city you live in.
For example, cities like Toronto and Hamilton where the population and home values are higher often coincide with higher-than-average home insurance costs.
On the other hand, municipalities like Welland, Niagara Falls, Port Colborne and St. Catharines that are outside of the most densely populated areas in the province are often comparatively cheaper.
Graph provided by RateHub.ca
Regardless of where your home is, it’s important to know all the factors that determine the costs to insure it.
WHAT FACTORS DETERMINE HOME INSURANCE COSTS?
Insurance providers have a set list of questions they will ask you to help them come up with a quote for home insurance.
If you’ve ever shopped around for home insurance before many of these likely sound familiar.
HOME VALUE
It’s well known that the more expensive your home is the more likely it will be that you pay a higher premium for home insurance.
What’s NOT as well known is that it doesn’t technically have much do to with the actual value of your current home and more to do with the estimated costs related to rebuilding your home.
In other words what your insurance provider needs to know to provide you with a home insurance quote is if in the event of the worst case scenario (i.e. a total loss fire), how much would it cost to rebuild your home and make you whole again?
OCCUPANCY OF YOUR HOME
The occupancy situation of the home is something your insurance provider will need to know.
- “Will it be your primary or secondary residence?”
- “Will it be a rented home used for rental income?”
- “Is it still under construction?”
These are all typical questions your insurance provider may ask you early on.
CONSTRUCTION TYPE
These are some questions that you may not know for sure off the top of your head so it’s good to prepare.
- “Is the home constructed with brick or steel?”
- “Is there vinyl siding in place?”
- “What year was the home originally constructed?”
- “Is it a full or semi-detached home?”
- “What style is the home (single-storey, two-storey, split level etc)?”
- “What’s the approximate square footage of the home?”
- “Is there a basement? If yes, what is the approximate square footage?”
- “Is there a garage? If yes is it a separate structure or attached to the home?”
Having answers ready for these types of questions will make getting a home insurance quote easier.
ENERGY SOURCES
Since the type of energy being used in your home can have an impact on the level of risk associated with your home your insurance provider will likely ask:
- “Are there any renewable energy systems installed (i.e. solar panels)?”
- “Has your home ever been heated with oil?”
- “Which fuel is used to heat your home (oil, gas, propane, wood stove etc)?”
- “How is the home heated (furnace, boiler, baseboard)?”
- “What electrical service is in place (100 amp, breakers, fuses)?”
HOME UPGRADES
Getting a sense of what recent or upcoming renovations and upgrades to the home are involved could have an impact on the cost of home insurance as well
- “When was the roof last replaced?”
- “How many bathrooms are in the home?”
- “Is there a deck? If so what size?”
- “Is there a security system in place?”
- “Does the property have a pool? If so is it above ground or in-ground?”
MORE QUESTIONS
Depending on the insurance provider and how good/thorough the agent you’re speaking with is there may be other things they’ll want to determine.
- “How many dogs live on the property?”
- “Will the home be used in part to run a home based business?”
- “How close is your home to the nearest fire station?”
- “Would you like sewer backup and flood coverage included in your policy?”
- “Will there be any hobby farm activities happening on the property”
- “Is there a mortgage currently on the home?”
- “How old is the eldest resident of the property?”
There is a lot to think about when it comes to evaluating your home and level of risk but it’s important to have the clearest picture possible to make sure you’re covered for everything you need and that you’re not paying for additional coverages that you do not need.
IS HOME INSURANCE MORE EXPENSIVE IN ONTARIO?
It depends on who you ask.
While Ontario is consistently in the top 3 provinces for average home insurance costs, we’re not always ranked at the top.
Money Sense has Ontario listed with the highest average home insurance costs in Canada, followed closely by Saskatchewan and Alberta.
While Insure Eye has us 3rd behind British Columbia and Alberta for both average homeowner and rental insurance costs.
HOW TO REDUCE YOUR HOME INSURANCE COSTS
While there are likely always going to be some things that have a significant impact on your home insurance costs that you cannot control (such as location, square footage, and occupancy) there are things that you can do to help keep the costs as low as possible.
INSTALL SECURITY SYSTEM
Not only can installing a home security system keep you, your family and your possessions safer while avoiding having to make an insurance claim, but it can also help you pay less for home insurance.
Many insurance providers, Erie Mutual Insurance included, offers a 10% discount on home insurance costs to homeowners with a monitored security system installed.
PAY OFF YOUR MORTGAGE
Easier said than done right? However, if you’re in a financial position where you’re able to become mortgage-free ahead of schedule, one of the benefits you may receive is a reduction of your home insurance costs.
Learn more about our mortgage-free discount.
BUNDLE
If you combine your home insurance with other policies such as an auto insurance policy, you may benefit from reduced costs. Just like our members who experience our 5% multi-line discount.
TAKE ADVANTAGE OF ALL OTHER DISCOUNTS
Depending on where you are on life’s journey there may be one or more additional discounts offered by your insurance provider that can help lower home insurance costs.
These can include:
- 5-10% claims free discount
- 5-15% loyalty discount
- Up to 10% new home discount
- 5% mature discount for those 50+ years
Learn more about all of the home insurance discounts Erie Mutual Insurance offers.
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.
