Home insurance is an essential aspect of protecting your property and ensuring your financial security. If you own a home in Ontario, understanding the average costs of home insurance is crucial for budgeting and making informed decisions about coverage. In today’s marketing, shopping for a home can be a bit daunting. One of the many factors to consider is where you buy. The location of your home can have a large impact on the price you will pay for home insurance. Let’s take a look at some of the most expensive cities for home insurance in Ontario, and examine the factors that contribute to how much you will pay to protect your home.

How much is home insurance in Ontario?

There is no one set cost for home insurance in Ontario. While insurers look at various factors to determine your quote, you can expect to pay anywhere between $1,000 and $2,500 for an annual policy. The average home insurance cost in Ontario is approximately $1,250 per year. This averages out to just over $104 per month. Your rates are determined based on your situation. Your coverage selection, plan limits, added endorsements and other customized coverage will influence your price. Home insurance costs are influenced by various factors, including:

Read our article to learn more about factors that can affect your home insurance premiums.

10 cities with the most expensive home insurance in Ontario

Since the fall of 2021, home insurance prices have increased by 10%. This is largely due to historic inflation, the rise of interest rates, global supply chain issues, and labour shortages pressuring costs even further. Let’s take a look at some of the most expensive cities for home insurance in Ontario:

  1. LaSalle
  2. Windsor
  3. Hearst
  4. Foleyet
  5. South Porcupine
  6. Keewatin
  7. Fort Frances
  8. Val Caron
  9. Elliot Lake
  10. Kapuskasing

Several factors come into play when setting insurance rates. Living in smaller communities, while quieter and offering more space and less traffic congestion, comes with its own unique set of challenges that can raise insurance premiums:

  • Smaller, rural communities pay more for their property insurance.
  • Larger properties and larger houses mean more to insure, as well as potentially more types of coverage required.
  • Exposure to natural disasters – think flooding or wind damage from large trees.
  • Higher crime rates. This may come as a surprise, but often smaller communities suffer from more crime, and thus, rates reflect the higher risk.
  • Proximity to a fire hydrant or a fire hall also factors into rates. If you are more removed and it would take longer to put out a fire on your property, then chances are there will be more damage to contend with.
  • That cozy fireplace comes with its own costs. Having one in your home will likely mean higher rates.

Here’s what you need to know regarding factors that affect home insurance premiums.

The average cost of Ontario home insurance by city

Location plays a big role in your personalized home insurance quote. Ratehub.ca compared the average cost of home insurance (plus the average cost to replace a home) in six popular Ontario cities based on user data. (All numbers were last updated in May 2024):

  • Ottawa home insurance ($211/month) – The average replacement cost of an Ottawa home is $629,567.
  • Hamilton home insurance ($239/month) – In Hamilton, the average replacement cost of a home is $571,754.
  • Windsor home insurance ($248/month) – The average replacement cost of a home in Windsor is $502,011.
  • Mississauga home insurance ($306/month) – According to user data, homes here cost an average of $732,645 to replace.
  • Brampton home insurance ($337/month) – According to user data, homes here cost an average of $686,247 to replace.
  • Toronto home insurance ($430/month) – Based on our numbers, the average replacement cost of a Toronto home is $702,622.

Reasons behind home policy increases

The price of Ontario house policies is increasing because of many economic, environmental, and societal factors:

  • Insurance fraud: When people make false claims or claim more damage than present, it drives up insurance prices for everyone.
  • Weather: With weather damage claims on the rise, especially from overland flooding and water-related damages, the cost to insurers is substantial. This is a growing concern and contributes to increasing home insurance costs.
  • Increased risk: More home insurance claims are being filed due to higher instances of crime, vandalism, and break-ins.
  • Economic factors: The cost of rebuilding homes is on the rise largely due to higher inflation and supply chain issues stemming from the pandemic. Lumber and other building materials have gone up in price, and this is reflected in the overall value of homes and the cost to insure them.
  • Real estate: In short, housing prices are increasing. People are building larger and more expensive homes, which increases the cost to insure the property.

How do average home insurance costs compare to condo and rental insurance?

With the prohibitive costs of buying a home, many Ontarians are opting to continue to rent or purchase condominiums instead of houses. Not surprisingly, it has a dramatic impact on the amount of home insurance you require.

Your specific cost will vary based on your location, coverage, insurance history, and many other considerations.

Final thoughts

When it comes to home insurance in Ontario, relying on the expertise of our isure insurance brokers can prove to be invaluable. Our brokers can help to navigate the complexities of the insurance market and offer personalized advice. We want to ensure that homeowners find the most suitable coverage at the best possible rates. Call us today.

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