Insurance is important for many reasons, but it’s understandable if you’re worried about the cost. The cost of living has never been higher, and you need to ensure that everything is as affordable as possible, including insurance.
So, what is the cost of home insurance in Ontario? That’s what we’re going to find out here. You’ll be able to know whether you’re overpaying, and the factors that go into your quote. Let’s get started!
Cost of Home Insurance in Ontario
The average cost of home insurance in Ontario is around $1,400 per year, which works out to be just under $120 per month. Of course, the exact cost you pay will depend on several factors, but your quote will likely be around that figure.
The vast majority of homeowners will pay between $750 to $2,000 for this insurance. However, on the extreme end of the scale, this range can extend from $400 per year, anywhere up to $10,000. However, the higher end of that scale is usually reserved for extremely high-value properties.
Due to the makeup of these areas and the high property value, Toronto and Hamilton have the highest average insurance costs. At the other end of the scale, Whitby and Oshawa will be the cheapest.
The biggest factor in home insurance is the estimated cost to rebuild your property, which links in with property value. With homes valued at around $300k, you can expect to pay around $800. For a home over a million dollars, you’ll most likely pay double that.
Different Levels of Coverage
If you want to save money on your car insurance, you may want to look at the different types of coverage available. There are three main types of home insurance coverage, which are:
Comprehensive – This will cover almost everything in your home. Only specific risks will be excluded, such as flooding damage. Comprehensive coverage gives you the highest peace of mind when it comes to insurance.
Broad – This cover is a slight step down from comprehensive, as there will be more exclusions on your policy. You’ll need to double-check your policy to ensure that you’re covered for the specific situation that you need.
Basic – This will be the cheapest form of coverage but also the most basic coverage. It will only cover a narrow range of specific events. For example, damage from a lightning strike or theft may not be covered.
What Affects the Cost of Home Insurance in Ontario?
Many factors go into your final home insurance quote. Knowing what they are can give you a better understanding of the monthly cost and allow you to see where savings can be made.
Coverage Type – As we mentioned, the different types of coverage come with different costs. Comprehensive is the most expensive, with basic being the cheapest. Broad coverage is somewhere in between.
Value and Rebuild Costs – When an insurance company looks at your property value, they are looking at the cost of rebuilding it. This means some factors that affect property value, such as location, may not be factored into your home insurance cost.
Likelihood of a Claim – If you live in an area of high crime or extreme weather, the insurance company will know there’s a higher chance of a claim being made. Also, if you’ve made several claims in the past, they will factor that in too.
Deductible – The deductible is the amount you pay upfront to process a claim. The higher the deductible is, the less you’ll pay. However, it’s vital to have a deductible you are comfortable with paying should you need to.
Credit Score – It seems counter-intuitive, but the worse your credit score, the more you’ll need to pay. This is because they view you as a higher risk and more likely to miss payments.
Where You Live – This can link to other factors, such as property value and the likelihood of a claim. However, some places are more expensive than others. For example, Toronto has the highest insurance costs of any city in Ontario.
Secondary Factors – There are plenty of other minor details that can go into the cost too. These are such things as the age of your building, the age of your hot water tank, extra features in your home, and how close you are to a fire station. These factors only have a small impact on the overall cost.
Saving Money on your Home Insurance
If you’re reading this article, it’s probably because you’re worried about your home insurance cost. Thankfully there are a few things you can do to bring down the cost of your policy.
Higher Deductible – If you can afford to pay it, having a higher deductible can be a great way to lower premiums. But as a word of warning, you may be stuck if it comes to making a claim and you can’t afford your deductible.
Pay Annually – When paying for insurance, you’re essentially paying a loan for a specific time period. You can often get a discount if you have the money to pay for your insurance in one go, rather than in installments.
Bundles – Do you need other types of insurance than just home? If so, you can often get a package deal. For example, a combined auto and home insurance policy will be cheaper than buying them separately.
Avoid Small Claims – With needing to pay a deductible, it’s often not worth making a claim for a low-value item. Not only do you need to think about the upfront costs, but this can also negatively affect your future claims.
Home Updates – You can update your home to make it safer and more secure with a variety of different measures. Perhaps the biggest is installing a new security system.
Choose the Right Coverage – There is no point in getting comprehensive insurance if you don’t need everything it covers. If you’re happy with a lower level of coverage, then go with that option.
Final Thoughts
For those living insurance, you can expect to pay around $1,400 per year for your home insurance. As we’ve seen, the exact price you pay will depend on a wide variety of factors. The best thing to do is get a quote for a better idea of exactly what you’ll be playing.
