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Ontario homeowners pay an average of $1250/year for insurance

  • Home
  • Condo
  • Tenant
  • Alberta
  • British Columbia
  • Manitoba
  • New Brunswick
  • Newfoundland and Labrador
  • Northwest Territories
  • Nova Scotia
  • Nunavut
  • Ontario
  • Prince Edward Island
  • Quebec
  • Saskatchewan
  • Yukon

There are multiple factors that determine your average home insurance cost in Ontario. Consider your location, your home’s rebuild costs to home construction materials, proximity of hydrants, and alarm systems. You’ll pay more for home insurance in Ontario if your electrical is out-of-date, or with high end renovation upgrades. With that in mind, let’s look at the average cost of home insurance in Ontario by city.

Average cost of home insurance in Ontario (by city)

On average, the cost of home insurance in Ontario is $1250 per year, or just over a hundred bucks a month. Ontario tenants, on the other hand, pay $210 per year or just shy of $20 per month. In other words, homeowners pay nearly six times as much as tenants to protect their abodes and their stuff. Ontario condo owners pay on average about $345 per year for insurance. However, there are many variables that impact your cost including the risk of crime, severe weather damage, and claims history. The most notable factor, though is the city in which you live.

Average home insurance cost in Ontario (by city)

*based on a million dollar home

Although the market value of your home does not directly impact what you pay for home insurance, it can give you an idea of what you can expect to see in terms of costs. Normally it’s your home’s rebuild value you should consider when buying a home insurance policy. Buying home insurance for market value is a mistake because if your house burns down, you still own the property, so only insure for the rebuild value.

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Average price of home insurance in Ontario (by value)

Not all homes (or real estate markets) are the same, nevertheless, our home insurance calculator says a home valued at under $300,000 generally sees an average home insurance cost in Ontario of $711 a year. As the price of homes increase, so does the cost of home insurance by about 10% per $100,000. But, the final numbers will be impacted by other factors.

Average Ontario home insurance cost (by value)

Obviously, the more expensive the home is, the more you’ll pay for house insurance, but this isn’t a reflection of market value; it’s often a straight numbers game. A more expensive home means a more expensive home to rebuild or a home with more expensive attributes to protect. If your home falls in the $1 million to $1.2 million range, it’s reasonable to see the average home insurance cost in Ontario hit the $1500 mark annually, and over $2,000 for homes in the $1.5-to-$5-million range.

What factors determine home insurance costs?

Different factors have different impacts on your home insurance costs, so we’ve listed the most important ones below.

Numerous factors have a strong impact on home insurance rates: province/location, neighbourhood (due to many influencers, like crime rates), electrical wiring, type of your piping and plumbing, house age and any completed renovations, any types of high-risk stoves (like wood stoves) and oil-based heaters.

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

The last category lists the factors that sometimes can somewhat impact your home insurance rate: installed alarm monitoring, your family status, availability of a garden, and some other smaller items.

That should equip you with an initial insurance checklist that you can use next time when shopping for a new home insurance quotes.

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