Average Cost of Home Insurance in Ontario

Average Home Insurance Cost in Ontario

October 5, 2021


One of the most asked questions when it comes to home insurance in Ontario is the cost. What is the average cost of home insurance in Ontario? After all, home insurance is not a mandatory purchase, and many of us want to keep tight to a budget – especially if we are new parents only just navigating the financial obligations that come with raising a family.

There are many variables that impact the cost of your home insurance, such as your claims history, the risk of crime, and the square footage of your home. This means that there is no “single” cost for home insurance in Ontario. Everyone will pay a different amount. Using various statistics and city averages, we can give you some estimates and ranges on the average cost of home insurance in the province.

All in all, the best way to figure out how much your home insurance will cost you is to request a quote! You can do so today by going to Excalibur’s virtual form.

The average cost of home insurance in Ontario – by city:

In Ontario, the average cost of home insurance is roughly $1250/year but this may vary immensely, depending on your living situation and your needs. It also varies by city.

  • In Brampton, homeowners may pay an average of $1,247/year.
  • In Clinton, homeowners may pay an average of $1,126/year.
  • In Exeter, homeowners may pay an average of $1,179/year.
  • In Hamilton, homeowners may pay an average of $1,294/year.
  • In Kitchener, homeowners may pay an average of $1,216/year.
  • In London, homeowners may pay an average of $1,378/year.
  • In Mississauga, homeowners may pay an average of $1,153/year.
  • In Mitchell, homeowners may pay an average of $1,194/year.
  • In Ottawa, homeowners may pay an average of $1,163/year.
  • In Stratford, homeowners may pay an average of $1,186/year.
  • In Toronto, homeowners may pay an average of $1,426/year.

***These averages are based on home insurance policy premium data from our database, and may not accurately reflect home insurance rates for all homeowners.***

While your home’s market value may not be the primary factor impacting your home insurance costs, it can be a good starting point for estimates. You should be considering the overall rebuild value of your home when insuring it, not the market value – as you could risk underinsurance.

What impacts the cost of home insurance in Ontario?

The numbers listed above are “averages” for a reason – they aren’t going to be the exact prices you will pay annually even if you live in the example cities! Your home insurance costs will be impacted by a variety of things. Your list of factors includes:

  • The coverage options you choose – the more coverage you need/purchase, the more your premiums will increase to reflect this. Also, if you opt for higher limits, your rates will reflect this as well.
  • The crime rates where you live – higher crime rates may mean you are more likely to make a claim as a result of theft or home invasion, and so your rates will be higher to reflect this.
  • The type of plumbing/piping you have in your home – the more likely it is to burst, clog, or otherwise cause damages to your home, the higher your rates.
  • Alarms and security systems – insurance providers may have a list of approved security systems and smoke detectors which, when installed properly and communicated to your provider, may lower your insurance rates or make you eligible for a discount.
  • Deductible – the higher your deductible, the lower your premiums – and vice versa. Some endorsements may be subject to a separate deductible.
  • The addition of pools or high-risk features – these items included in your home may pose a higher likelihood of liability claims, so your rates may reflect this increased risk.
  • Proximity to a large body of water – the closer you are, the more likely you are to suffer from a flood or overland water damage, which may impact your rates.
  • Proximity to the nearest fire station or hydrant – this impacts the likelihood of you receiving help in time should a fire break out. The further you are, the likelier your rates are to be higher as a result.

These are just a few of the items that will impact your rates. There may be more, depending on your provider and your circumstances. The bottom line? The more likely you are to make a claim, the higher your rates will be. If cost is a concern of yours, there are ways to mitigate your expenses.

How to reduce home insurance rates

Your average home insurance cost is not the be-all and end-all. In fact, there are ways you can cut your costs without sacrificing any necessary coverage. Here are a few.

  • Choose a higher deductible. So long as you are okay with having a higher out-of-pocket cost, a higher deductible can reduce your rates by between 5-25%.
  • Do annual insurance reviews and eliminate any coverage or reduce your limits if they are no longer necessary.
  • Install home security systems and alarms that are approved by your provider.
  • Bundle your home and auto policies through a single provider.
  • Shop around or apply for an online quote with Excalibur Insurance to stay on budget.
  • Avoid making a claim if you can fix the damages yourself. The more claims there are in your history, the higher your insurance rates will be to reflect this. Think twice before you submit a claim – it may not be worth it!
  • Allow a credit check. If you have a good credit score, you may become eligible for a discount. This can sound intrusive, but it is an easy way to ensure your provider you are less likely to file a claim in the future.

Discuss with your insurance broker if you are looking to reduce the cost of your home insurance premiums. An Excalibur Insurance broker can help you save money by shopping the market for you, to find the best coverage at the right price. Give us a call at 1-888-298-7343 or request a home quote by clicking the buttons below.

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