How Much Does Home Insurance Cost Ontario?

Insurers consider a variety of factors when determining the cost of home insurance premiums in Ontario. They include information such as the location of your home, the cost of rebuilding it, the proximity of fire hydrants and fire stations, and the age of your home.


The city you live in is one of the most important elements in deciding your home insurance rate in Ontario. Your home insurance prices are influenced by the city and neighborhood where you live because your insurer keeps track of the types, costs, and number of claims in your area. They analyze previous claims to gain a better understanding of your neighborhood and predict the likelihood of future claims.

Replacement cost

Replacement cost, also known as rebuild value, is a significant element in setting your house insurance costs. It differs from resale value in that it includes the cost of materials and labor to rebuild your home but excludes the value of the land on which your home is built. The replacement cost of your home is the amount it would cost to repair it if it were destroyed. The cost of replacing your home is determined by the size of your home and the materials used to construct it. The higher the replacement cost of your home, the higher your home insurance premiums will be.

Proximity to fire hydrants

Your insurer will need to know the distance to the nearest fire hydrant or fire station since the faster a fire is put out, the less money it will cost to rebuild your property. In the city, this is normally not an issue, but in rural areas, fire stations are further away, which will raise your rates.

Electrical wiring

Insurers take into account the sort of electrical wiring in your home and how power enters it. Aluminum or knob-and-tube wiring is a fire hazard, and insurers may require you to certify that your property is free of this sort of wiring. They may offer you time to remove it or conduct a safety inspection. Breakers are safer than fuses, and to avoid overloading and fire, you should have at least a 100-amp service.

The age of the roof

An old roof will raise your insurance rates, and it should not be older than 20 years. Some homeowners’ insurance policies only cover a roof’s depreciated worth if it is nearing the end of its useful life.

Wood stoves

If not properly maintained or fitted, wood-burning stoves can cause fires and carbon monoxide poisoning. Insurers may require them to be inspected, and possessing one can raise your house insurance premiums.

What kind of plumbing your home has

Because galvanized or lead piping signifies outdated plumbing with a higher risk of breaks and leaks, homes with copper or plastic piping have lower insurance premiums.

Other uses of your home

If you rent a portion of your home, run a home-based business, or make significant changes to the structure or usage of your home, you must notify your insurer so that your home insurance policy can be adjusted.

How much does home insurance cost in Ontario?

In Ontario, the average annual cost of home insurance is around $1250. Tenants pay approximately $210 per year, whereas condo owners pay approximately $345 per year. Home insurance costs more than renters or condo insurance since it covers the entire structure, not just your personal belongings and the interior of your unit.

How much does the average Canadian spend on home insurance?

According to Ratehub, an aggregator website, the average cost of home insurance in Canada is $960 per year (owned by Ratehub Inc., which also owns MoneySense).

How much is home insurance on 500k?

One of the most critical coverages in your home insurance policy is dwelling coverage. The home insurance provider will pay to rebuild or replace your home if you have a claim for structural damage. MoneyGeek discovered that the average annual premium for $250,000 dwelling coverage in 2022 will be $1,979, or $165 per month, based on the data collected for the study (plus installment fees set by the insurance carrier).

Your policy will cost nearly twice as much if you double your residence coverage. A policy with $500,000 in housing coverage costs an average of $3,519 per year, or $293 per month.

Why is my home insurance so high Ontario?

Different factors affect your house insurance premiums in different ways, so we’ve highlighted the most essential ones below.

Home insurance rates are influenced by a number of factors, including province/location, neighborhood (due to a number of factors, such as crime rates), electrical wiring, type of piping and plumbing, house age and any completed renovations, and any high-risk stoves (such as wood stoves) and oil-based heaters.

The type of your house frame (like wood or concrete), distance from water sources (like sprinklers), any additional endorsements that you need (for jewelry, for example), size of insurance deductibles, and business conducted from home are all factors that affect insurance rates, but not as significantly as the previous list.

The final category includes the following items that can have a minor impact on your house insurance rate: installed alarm monitoring, family status, availability of a garden, and a few other minor details.

That should provide you a basic insurance checklist to use the next time you’re looking for new house insurance rates.

Why is homeowners insurance so expensive?

Home insurance protects you against the loss or damage of your home and its contents. It’s usually needed by mortgage lenders to preserve the value of your property, but it can also be acquired voluntarily for added peace of mind—though it’s not always cheap.

The cost of homeowners insurance varies by state, but it is on the rise everywhere. According to data from the National Association of Insurance Commissioners, the average monthly premium increased from $830 in 2008 to $1,211 in 2017. In addition to industry-wide price hikes, your house insurance estimates may be high due to your credit, the age and value of your property, the type of construction, location, and exposure to disasters, among other considerations.

Is home insurance included in mortgage?

When it comes to buying your first house, you don’t need to be an insurance expert, but it might be confusing when you hear the terms “homeowners insurance” and “mortgage insurance” for the first time. It may be helpful to know the difference between homeowners insurance and mortgage insurance as you learn about your insurance needs at this significant new stage in your life. Although not every home owner need mortgage insurance, homeowners insurance is almost always required to ensure that their new home is adequately safeguarded.

Here’s a look at each form of insurance, why you might need it, what it can help cover, and when you might buy it when you begin house looking and explore the process of getting pre-qualified for mortgage loans.

What Is Mortgage Insurance?

Mortgage insurance, commonly referred to as private mortgage insurance or PMI, is a type of insurance that some lenders may need to safeguard their interests in the event that you default on your loan. Mortgage insurance does not protect you as a homebuyer or cover the home. Instead, PMI safeguards the lender in the event that you default on your payments.

When Is Mortgage Insurance Required?

When you take out a mortgage loan and your down payment is less than 20% of the purchase price, you may be forced to obtain mortgage insurance. The need for mortgage insurance varies depending on the lender and loan package. Some lenders, depending on your circumstances, may allow you to avoid PMI even if you put down a lower down payment. Ask your lender if PMI is necessary, and if so, if there are any exceptions to the rule that you might be eligible for.

Is Mortgage Insurance Included in Your Mortgage?

Your mortgage loan does not contain mortgage insurance. It is a separate insurance coverage from your mortgage. Mortgage insurance is often paid in one of two ways: in a large sum upfront or over time with monthly payments. It’s not unusual, though, for the amount of your PMI premium to be rolled into your monthly mortgage payment. You can make a single monthly payment to cover both your mortgage loan and your mortgage insurance in this manner.

Check the loan estimate1 you receive from a lender for information and ask questions if you want to know whether a lender requires mortgage insurance, how you pay it, and how much it will cost. You can also conduct your own research by going to a website like the Consumer Financial Protection Bureau’s website. To further understand what PMI could be required and whether you’d pay premiums monthly, upfront, or both, seek for information that outlines the closing disclosures on your loan estimate.

The good news is that if you do require mortgage insurance, you may be able to get rid of it once you’ve paid down your loan enough to have more than 20% equity in your property. When you’re no longer obliged to have PMI, check with your lender to see when and how you can get out of PMI2.

What Is Homeowners Insurance?

Homeowners insurance, commonly referred to as home insurance, is a type of coverage that all mortgage lenders require for all borrowers. Unlike the necessity to purchase PMI, the requirement to get homeowners insurance is unrelated to the amount of your down payment. It is proportional to the value of your home and land.

When Is Homeowners Insurance Required?

Anyone who takes out a mortgage loan to buy a house is usually required to have homeowner’s insurance. After you’ve paid off your mortgage, you’ll almost certainly want to keep your homeowners insurance policy. While your mortgage lender can no longer compel you to have home insurance once you’ve paid off your loan, it’s up to you to safeguard your investment.

Is Homeowners Insurance Included in Your Mortgage?

Because they pay a single monthly payment that includes both their homeowners insurance premium and their monthly mortgage payment, some homeowners may believe their house insurance is included in their mortgage. Homeowners insurance, on the other hand, is not included in your mortgage. It’s a separate insurance policy from your mortgage loan contract. Your homeowners insurance premium goes to your homeowners insurance company, and your mortgage payment goes to your mortgage lender, even if your loan and insurance payments are combined into a single monthly payment.

Your mortgage lender may establish an escrow account3 where you can pay your homeowners insurance and property taxes. This ensures that you have adequate money to pay off both major bills on schedule. Typically, the bank collects that money as part of your monthly mortgage payment, deposits the cash in escrow, and then pays your homeowners insurance carrier on your behalf every six months or annually.

Do I Need Homeowners Insurance After My Mortgage Is Paid Off?

If you want to secure your house once your mortgage is paid off, you’ll need homeowners property and liability insurance. Property coverage for homeowners can assist protect against the potentially crippling costs of rebuilding or replacing your home following disasters such as fire, lightning, or windstorms. If a visitor falls and gets harmed at your house, homeowners liability insurance can help protect you.

Unlike PMI, homeowners insurance has nothing to do with your mortgage except that it is required by mortgage lenders to preserve their investment in the property.

While mortgage insurance safeguards the lender, homeowners insurance safeguards your property, its contents, and you, the homeowner. When your mortgage is paid off and you own your house outright, homeowners insurance may become even more important to your financial security.

After you’ve paid off your mortgage, there are four reasons why you’ll need homeowners insurance:

  • The structure of your home is covered by homeowner’s insurance. After a covered disaster or occurrence, such as a break-in, a lightning storm, a house fire, a tornado, or a hurricane, your homeowners insurance can assist pay to restore or rebuild your home. A separate structure on the property, such as a storage shed, gazebo, or guest home, is usually covered by most policies. If your home is damaged or destroyed and you don’t have homeowners insurance, you’ll be responsible for the costs of repair, replacement, and rebuilding.
  • Your belongings are protected by homeowner’s insurance. Remember that your home’s structure isn’t the only thing that needs to be protected. Furniture, clothing, sports equipment, and tools are among the items in your home that could be pricey to replace. Your homes insurance may also cover items outside of your home, such as a newly purchased holiday gift stolen during a car break-in. Homeowners insurance may even cover your yard’s plants and shrubs.
  • If your home becomes temporarily unlivable, homeowners insurance can assist cover your lodging costs. It’s a good idea to include additional living costs (ALE) coverage in your home insurance policy. While your house is uninhabitable due to a covered occurrence, this coverage can help pay for an Airbnb, hotel, or other form of housing. Meals may also be covered by ALE while your house is being renovated.
  • Liability claims can be mitigated by homeowner’s insurance. Liability coverage is a crucial aspect of homes insurance that is frequently ignored. In the event that a guest or visitor is hurt on your property, you may require security. A neighbor, for example, could slip on ice on your sidewalk. When someone files a liability claim against you, liability coverage can assist pay medical bills and possibly even cover attorney fees.

As you can see, both mortgage and homeowners insurance are essential components of home ownership. Are you interested in learning more about Travelers homeowners insurance? Make contact with your agency. What if you don’t have one? Now is the time to find an agent.

How do I know how much homeowners insurance I need?

Fire, lightning, hail, and explosion damage are all covered by standard homeowners insurance plans. Flood and earthquake insurance is required for persons who live in flood-prone or earthquake-prone areas. In any case, you’ll want your policy’s coverage to be sufficient to cover the expense of reconstructing your home.

The cost of rebuilding may be more or less than the price you paid for your home—or the current market price. Furthermore, if your insurance policy’s limit is determined by your mortgage (as some banks require), it may not be sufficient to cover the cost of reconstruction.

While your insurer will prescribe a coverage maximum for your home’s construction, it’s also a good idea to educate yourself. Consider the following factors to ensure your home has adequate structural coverage:

Major factors that will impact home rebuilding costs

Multiply the total square footage of your home by local, per-square-foot building expenses to get an estimate of how much insurance you’ll need. (It’s worth noting that the cost of the land isn’t included in the reconstruction estimates.) Call your local real estate agent, builders association, or insurance agent to learn about construction prices in your area.

Details that can impact home rebuilding costs

  • Frame, masonry (brick or stone), or veneer are the many types of exterior wall construction.
  • Improvements you’ve made to your property that have increased its value, such as adding a second bathroom or renovating the kitchen

Is it more expensive to insure an old house?

As a house gets older, the cost of insuring it tends to rise. Insurance premiums for a home that is more than 30 years old are 75 percent higher than for a new home. Why is it that insurance for older properties is more expensive?

  • Deterioration: Years of exposure to the elements and wear make older properties more vulnerable to further harm, especially if upkeep has been neglected. Galvanized steel pipes, for example, are more likely to rust and leak than new copper pipes.
  • Safety codes: Older residences were not designed to the same requirements as newer homes. Plumbing, roofing, and electrical systems that are out of date might be dangerous. Knob-and-tube wiring, which was popular in the 1930s, dramatically increases the risk of fire; some insurance companies will not cover homes with it. Aluminum wiring, which was popular in the 1960s and 1970s, can cause fires. Bringing your home up to current building requirements will increase the cost of repairs or rebuilding if you file an insurance claim.
  • Materials and design: Utilizing original materials and features, such as solid-core doors, plaster walls, or leaded window panes, to rebuild or restore an older home is likely to be more expensive than using modern building materials. Period-specific parts and contractors who specialize in these types of repairs will cost more. Hazardous materials, such as asbestos, may incur additional costs as well.
  • Historic restrictions: If you reside in a historic home, you’ll have to follow national, state, or local regulations for rebuilding and repairs, which might add to the cost.
  • Claims history: Even if you weren’t living in the house at the time the claims were made, a home with a history of insurance claims will cost more to insure. A pattern of insurance claims is often seen as an indicator of a high-risk residence by insurance companies.

Is it worth having home insurance?

It’s a good idea to get home contents insurance to protect your belongings from things like fire, theft, and other dangers like unintentional damage. If something occurs to your belongings and they are destroyed or damaged, it can be very expensive to replace them, especially if some of them are vital.

This article explains what home contents insurance covers, how to choose a coverage, and what obstacles you can encounter while filing a claim.

Is it OK not to have home insurance?

It is legal to own a home without having homeowners insurance. Those that have a financial stake in your property, such as a mortgage or a home equity loan, will almost always demand it to be insured.