How Much Does Home Insurance Cost In Canada

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A homeowner’s insurance policy is a form of protection that covers your house and valuables in the event of an emergency or catastrophe. Homeowners will be able to make a claim for reimbursement should something happen at the property location. Although home insurance is not required by law, mortgage lenders demand it to protect their loan in a problem or accident with the property. Please continue reading to learn more about home insurance and its costs.

The Cost of Home Insurance

The average cost of home insurance in Canada is $80 per month. However, this varies based on the province in consideration. This section talks about the cost of insurance in central provinces as well as the most frequent claims.

Home Insurance in Ontario

The average monthly insurance premium for Ontario residents is $117 and for home insurance in Toronto the average is slightly lower.. Please note that this is for homes valued between $700,000 and $1,500,000. Water damage is the most frequent reason for insurance claim payments in Ontario. Flooding overland, backed-up sewers, and storm surges are all excluded from typical insurance policies. Therefore adding on sewer backup coverage and overland coverage can assist you to avoid expensive flooding damages.

Home Insurance in Alberta

Alberta has the highest insurance premiums in Canada. Residents with a home valued between $700,000 and $1,500,000 pay $157 per month on average. Forest fires and flooding risks are the two most common reasons for homeowner insurance claims in Alberta. This is especially true in southern Alberta, such as Calgary and Lethbridge. Flood insurance might be worthwhile as a safeguard against floods that can cause significant damage to your property.

Home Insurance in BC

BC residents with a home valued in the above price range pay $130 per month on average. The Pacific Northwest is a high-risk region for earthquakes, especially because Vancouver and Victoria are on the margin of two tectonic plates. However, earthquake insurance add-ons may be more expensive in this region as a result of the danger.

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Home Insurance in Quebec:

The high number of ancient houses in Montreal and Quebec City is essential for home insurance in Quebec. Quebec homeowners pay $96 per month on average to protect their homes. Many of these homes may have outdated electricity and drinking water connections throughout the property, putting them at a greater risk of suffering an accident that insurance won’t cover.

What Factors Determine Home Insurance Costs

Many variables impact your home insurance premiums, so we’ve compiled a list of the most significant ones below.

The primary factors that influence insurance rates are:

  • Province and Region
  • Neighbourhood
  • Electrical wiring
  • Piping and plumbing material
  • Age of house
  • Recent renovations
  • High-risk appliances (wood stoves and oil-based heaters)

The following factors also influence monthly insurance rates, however, not as significantly as the list above:

  • House frame material (wood vs. concrete)
  • Water source distance (sprinklers and fire hydrants)
  • Additional high-value contents coverage (jewellery, artwork, etc.)
  • Deductible size

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How to Get Home Insurance

Homeowners can get Home Insurance through private companies, brokers, co-ops (cooperatives) etc., all of which provide different types of coverage with varying rates depending on individual risk factors.

Homeowners who are short on time should consider working with an insurance broker who will approach multiple insurers on their behalf. A quality broker will understand the homeowner’s needs to find the best policy for them. Additionally, an insurance broker should leverage their relationships to help the homeowner get a cheaper policy than they could alone.

What Does Home Insurance Cover

Home Insurance policies generally cover structural damage caused by fire, wind, ice storms etc., personal property loss or damage caused by theft or vandalism. Home Insurance policies typically also provide Home insurance owners with liability coverage should someone get injured on the property.

Owners also have the option for additional policies to protect more of their belongings. The most common additional policy is flood insurance which protects homeowners from a flood in their region. It is worth noting that flood insurance does not cover sewage backup or overland water flooding, which are the two common causes of water damage. These are additional policies on top of flood insurance that homeowners may consider.

Additionally, those with luxurious tastes can protect their expensive belongings. Extended contents insurance will cover high-value items such as jewellery, artwork, or a wine collection. The cost of this policy varies on a case-by-case basis, so it is worth discussing with your insurance provider.

Finally, homeowners from BC and Quebec may also consider earthquake insurance which is an additional fee. As the name suggests, this policy covers the cost of rebuilding a home after an earthquake damages it.

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Five Tips to Lower Home Insurance Costs

  1. Increase Your Deductible: Increasing your deductible reduces the risk for the insurance company in the case of a claim to decrease your monthly premium costs. However, it is essential to realize that raising your deductible means you will have to spend more out of pocket if you file a claim.
  2. Install a New HVAC System: A new furnace will lower the danger of fire in your home, which can help you save money on insurance. At the same time, a more efficient heating system may help you save money on your energy bills.
  3. Install a New Roof: Replacing an old roof will decrease the chance of water damage. Insurance providers like this and may reduce your premium costs.
  4. Install a Home Security System: Not only do security systems help keep your family safe, but they also help reduce the risk of theft from your property. Systems may also automatically call the fire department in the case of an emergency.
  5. Shop Around at Different Insurers: Comparing insurance policies is an excellent approach to determining which company gives you the best price. It’s possible to compare several insurers using an insurance agent.

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The Bottom Line

To conclude, home insurance is a particular form of insurance designed to protect your home and belongings in the event of an unexpected costly incident. Each province has a different average premium due to various risks. Homeowners can get home insurance through private companies, brokers, co-ops (cooperatives) etc., all of which provide different types of coverage with varying rates depending on individual risk factors. Overall, insurance is a wise decision for homeowners looking to protect their assets.

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