The Cost of Home Insurance in Ontario

Home insurance is vital for homeowners. You may already be aware that home insurance is not mandatory for those who own their home (although if you have a mortgage, chances are your bank will recommend or encourage you to purchase the bare minimum to secure the property structure) however it is essential for your peace of mind and can come in clutch if things go awry. Disasters happen without warning – no matter how prepared we like to think we are.

Like with any purchase, would-be policyholders or policyholders shopping around for a better option may be curious as to how much home insurance in Ontario costs. The answer to that is that it depends. Technically, home insurance in Ontario varies in cost depending on several factors, which we will go into later in further detail.

While it is critical to protect what is likely your family’s biggest investment, how much is going to cost?

Home Insurance Coverage

If we didn’t stress this enough already, home insurance is vital. It brings you peace of mind at an affordable price and can protect a number of your assets and investments, including:

Your liability

Our society is becoming increasingly litigious, meaning that the risk of being sued for damages or bodily injury are ever prevalent. Liability insurance, as part of your home insurance, may be referred to as third party liability. It is generally a standard coverage component with home insurance, and also with condo or tenant’s insurance. If someone were to sue you, your policy could cover you for any legal bills – whether the lawsuit ends up being successful or not. It can also compensate you for a settlement or court award up until your previously stated policy limit.

Your property

Your home insurance generally contains property coverage, for reimbursing you for damages to the home itself due to insured perils. Typically, insured perils include fires, natural disasters, falling objects, theft, and vandalism. Your property insurance may cover your home, additions and modifications (talk to your broker if you have recently made any updates or plan to make any) as well as detached private structures – like landscaping, sheds, fences, patios, etc.

Your belongings

Your belongings have more value than you’d think. Your home insurance in Ontario will cover your belongings up until a certain limit – some items may require additional insurance in order to have coverage. Typically, there is an “upper cash limit” which is often expressed as a percentage of the money it would take to rebuild your home as it stands. Some items require separate insurance or “riders” to have coverage, like art, furs, etc.

Your temporary living expenses

If you are forced to leave your home temporarily while repairs are being done or your property is being rebuilt, your home insurance will supply coverage to pay for additional living expenses – such as living arrangements, food, etc. There are always limits that come with this, so eating out every night at a five-star restaurant may not be covered, but this will ensure you can stay on your feet while your home is being repaired due to an insured loss.

As you can see, there are a lot of things that home insurance can cover you for. The cost of home insurance is negligible next to the protection it provides.

Some Averages for Ontario Home Insurance

Depending on where you live in Ontario, home insurance may look very different to you. We have provided the following average premiums for several different locations in the province for you to look at to gain a better expectation of your premiums.

How Home Insurance Costs are Calculated

The cost of home insurance is mostly determined by how much it would take to rebuild your home as it stands today. Even if you paid less for your home when you first bought it, chances are the cost of your home has been inflated with time. Also, take into account the value and availability of certain materials, the hourly rate of construction workers, and so on.

Here are the main factors that contribute to your premiums:

• The overall square footage of your home, including the basement
• The amount of coverage you have and optional coverages
• Your postal code
• How close you are to a fire station or hydrant/how likely you are to receive help in time to prevent a total loss
• Whether you live urban, suburban, or rural
• Your insurance history
• Your creditworthiness
• Your home’s security systems, deadbolts, locks, etc.

Adding optional coverages like earthquake insurance, overland flooding, sewer backup, and identity theft insurance may increase your premiums by $1/month up to $12. Considering that this is less than how much it would cost to have a takeout coffee a day for an entire month, many of these optional coverages are worth the small increase.

How to Reduce Home Insurance Costs

If you feel that the price you are paying for your home insurance in Ontario is too much to bear, there are ways to reduce your costs – all without slashing any critical coverage. First and foremost, always shop around for options. A broker can do this for you as well, and they will have all the “ins” on how to make home insurance more affordable.

There are other ways to reduce your costs, including:

• Increasing your deductible (the higher the deductible, the lower your premiums)
• Bundling insurance policies – i.e, purchasing auto and home through one provider
• Maintain a continuous insurance history
• Make modifications to your home to increase security and disaster-resistance
• Ask about potential discounts
• Review your coverage as frequently as possible

For more ways to save, discuss with Excalibur Insurance. Brokers know home insurance best and may be able to provide you with insight on how to save based on your personal circumstances.

Shopping Around for the Best Price

Lucky for you, Excalibur Insurance Group has a number of home insurance specialists who can help you get what you and your family need when it comes to great protection. We have options to help you save on costs, reduce your overall expenses, and can let you in on any discounts you may qualify for. Apply for a quote or give us a call to talk to our experts on an insurance plan that works for you.