11 ways to get cheap home insurance in Canada

With files from Tyler Wade

This article was originally published on October 25, 2019 and was updated on February 19, 2026. 

Home insurance premiums are rising across Canada, driven by factors like inflation, rebuilding costs, and severe weather events. The frequency of wildfires and floods is a primary reason why homeowners are experiencing rising rates. In 2025, insured losses from severe-weather-related damage exceeded $2.4 billion. As a result, insurance companies increase premiums for policyholders to recoup their losses. 

Despite factors out of your control, there are steps you can take to ensure your home insurance remains affordable, such as qualifying for eligible discounts. Here are 11 ways you can get cheap home insurance in Canada. 

11 strategies to secure cheap home insurance rates

Here’s a summary of the ways you can lower your premiums and save: 

1. Allow your provider to perform a credit check
2. Increase your deductible
3. Bundle your policy with car insurance
4. Install an alarm system
5. Shop for home insurance quotes online
6. Pay your premium annually
7. Audit the value of your belongings
8. Only make necessary claims
9. Reduce your coverage amount
10. Switch companies instead of cancelling
11. Ensure you have proper coverage

 

1. Allow your provider to perform a credit check

You may be surprised to learn that your credit score can influence your home insurance premiums. Most home insurers in Canada will request a soft credit check, but they need your consent to do so. If you have a good credit score, it’s in your best financial interest to let your provider perform the check. Insurance companies operate on the premise that a high credit score means you pose less risk as a policyholder, which can help lower your monthly premiums. Opting out of a credit check could result in higher rates, as you won’t be eligible for discounts. 

Also read: Can insurance companies check your credit score?

2. Increase your deductible

A deductible is the portion of money you pay out of pocket on a claim before your insurer pays the rest. If you increase your deductible, your insurer pays less to cover the remaining claim cost, and as a result, your premium will be lower. Typical deductibles are $500 to $1,000, but if you can afford it, raising the deductible further can save you hundreds of dollars a year. Remember that a higher deductible means you’re on the hook for the money if you file a claim. So it’s essential to assess whether you can afford the cost before making changes.

3. Bundle your policy with car insurance

Purchasing multiple policies from one insurance company is a great way to secure a discount on your premiums. Bundling home and auto insurance could get you up to 25% in savings, although discounts vary by insurer. To ensure you’re getting the best deal, review your existing policy before bundling to confirm that your coverage and deductibles remain the same. 

4. Install an alarm system

Securing a cheap home insurance rate comes down to the level of risk you bring as a policyholder. Installing an alarm system and other safety measures, such as a smoke detector, can help lower your risk and qualify you for a discount. 

5. Shop for quotes online 

Each insurance provider calculates rates differently. This means one company may offer you a lower rate than another. So, to ensure you’re getting the best price, it’s always worthwhile to shop around for quotes.  It’s quick and easy to get home insurance quotes online at Ratehub, and it’s also free. You can use our insurance tool to compare rates from multiple providers and find the coverage you need at the best value. 

6. Pay your premium annually

If you can afford to pay one lump sum to your insurance provider instead of monthly payments, you’re effectively reducing administrative costs and saving them money. In most cases, if you pay annually, insurers will reward you with savings. However, don’t let your insurance lapse and miss a payment. Doing so could cause your premiums to go up and put you in a bad situation when you need to make a claim. 

7. Audit the value of your belongings

Knowing the value of your insured items can help you avoid overpaying and underinsurance. For example, if you purchased extra bike insurance for your road bike five years ago, it may no longer be worth the same amount and may not be required today. In this scenario, you could remove it from your policy and lower your premium. On the other hand, if you have valuable jewellery, it may exceed the standard coverage threshold. In this case, consider an endorsement to make sure you’ll be covered if you make a claim.

8. Only make necessary claims 

Staying claims-free is a guaranteed way to keep your premiums from rising and could secure you a discount. That’s not always a reality, though. To limit rising prices, only make a home insurance claim if it’s worth it. For example, a basement flood that causes tens of thousands of dollars in damage is worth filing a claim over, as the total cost far exceeds the deductible. 

9. Reduce your coverage

The less coverage you have, the less you’ll pay in premiums. However, as with increasing your deductible, you must ensure you can afford the reduction in coverage. Removing key endorsements from your policy, like flood insurance, means that you will have to pay for any water damage to your home out-of-pocket. Understand your risks and coverage needs, then reduce as you see fit to save a few extra dollars each month. 

10. Switch companies instead of cancelling

Home insurance isn’t mandatory, but most mortgage lenders require it. If you own your home outright, you can forgo the insurance, but that’s a significant risk, as it protects you from fire, water, theft, and vandalism. Even if you live in a low-risk area, there is still what’s called third-party liability. Third-party liability protects you if someone sues you for getting injured on your property. If you’re mortgage-free, it’s wise to keep your insurance policy and switch to a cheaper provider instead of cancelling. If you lapse your coverage, your premiums could soar. 

11. Ensure you have proper coverage

Not having enough home insurance coverage could end up costing you more in out-of-pocket expenses than a premium reduction is worth. Make sure to communicate with your insurance company to ensure you will be covered if you file a claim. For example, let them know if you’ve made updates to your home, such as installing a pool, so they can adjust your policy accordingly. Keeping your policy up to date could save you thousands of dollars. 

The bottom line 

Although home insurance prices are on the rise across Canada, there are strategies you can implement to help offset rising costs and secure savings. Once you’ve chosen a provider, ask about eligible discounts and how you can save. The above tips are universal for any provider, as most offer loyalty, union, and other discounts you can take advantage of. 

Also read: 

• 15 ways to get cheap car insurance in Canada
• How has home insurance affected inflation in Canada?
• What is tenant insurance?
• How to stop thieves from entering your home