Do You Know the Average Home Insurance Cost in Ontario?

 

It is critical to comprehend the average home insurance cost as well as all of the factors that influence it. In Ontario, homeowners pay an average of $780 for home insurance, but factors such as location, replacement costs, coverage, and riders, such as flood or jewellery coverage, can all have a significant impact on the coverage. Renters can purchase insurance as well, and the rates are generally lower for renters than for owners.

Although the market value of your home has no direct impact on what you pay for insurance, it can give you an idea of what to expect in terms of costs - or, at the very least, what you should plan and budget for. A home valued under $300,000 typically has an annual cost of $702 in Ontario, while homes valued between $300,000 and $700,000 can expect to pay $1,000 (approximately $924), but the final figures will include other factors.

The higher the cost of insurance, the higher the cost of the home, but this is not a reflection of market value. A more expensive home means a higher replacement cost - or a home with more valuable items to safeguard. If your home is worth $700,000 to $1.5 million, you can expect annual insurance rates in Ontario to be around $1,400, and $2000 or more for homes worth $1.5 to $5 million.

Provincial differences do exist

Because each province faces unique challenges, coverage costs vary by province. Average insurance in Ontario isn't usually influenced by things like earthquake coverage, but the same cannot be said for British Columbia. Overland flooding is a separate insurance category in Canada, and insurers are typically unwilling to cover this risk.

In Alberta, for example, the average home insurance premium for homeowners is $900 per year. Home insurance in Quebec costs an average of $840 per year.

 

Home insurance costs are determined by a variety of factors.

There are several factors that can raise your home insurance rates, and they must be considered when buying a home. Fireplaces or wood stoves, swimming pools, oil-based heating systems, old wiring, commercial zoning, old pipes, and poor / old roofing are examples of such factors. Your garden and trees can also have an impact, as large trees pose a risk of falling on your home.

When purchasing a home insurance policy, your claim history is also taken into account. If you have a long history of claims, some insurance companies may consider you a high-risk customer, which may result in higher premiums or the refusal to issue an insurance policy.

Home insurance for tenants is 3 times cheaper

Renters can benefit from lower home insurance costs because they do not require all of the coverages that homeowners do. A typical tenant insurance policy would cover your liability (for example, if you flood people who live beneath your unit) as well as the contents of your home (e.g. expensive electronics, items of art, rare collection items).

In Ontario, the average cost of rental insurance is $252 per year ($21 per month). Tenants insurance costs comparable in other provinces: $33/month in Quebec and $25/month in Alberta.

Author: RabnawazToor