Buying a new home in Cambridge can be daunting, but applying for a home insurance policy can bring you peace of mind. While home insurance in Cambridge isn’t necessary, it can provide financial assistance in case of specific perils.
How Does Home Insurance Work In Cambridge?
When you get a home insurance quote in Cambridge with MyChoice, you’re receiving a comprehensive policy that goes beyond just the basics — including Guaranteed Replacement Cost, which ensures your home will be rebuilt to its original condition even if the cost exceeds your dwelling coverage limit.
Your quote is made up of two main pillars: Base Residence / Dwelling (covering your home, contents, liability, and standard perils) and Enhanced Water Protection (covering floods, sewer backup, and groundwater seepage). Together, they form a complete protection package for your property and belongings.
| Coverage Type | What’s Included? | Average Annual Home Insurance Premium |
|---|---|---|
| Base Residence / Dwelling | – Dwelling Coverage – Outbuildings (detached structures) – Contents – Personal Liability – Voluntary Medical Payments – Voluntary Property Damage – Basic Water Damage | $958 |
| Enhanced Water Protection | – Sewer Backup Endorsement – Ground Water Endorsement – Overland Water Endorsement – Broad Water Damage Endorsement | $191 |
| Coverage Total: | $1,149 |
*A comprehensive home insurance policy protects your property and belongings against all perils except those specifically excluded by the policy. This typically includes: fire and smoke damage, wind and hail damage, lightning strikes, burst pipes (depending on the situation), falling objects (like trees or branches), theft and burglaries, and vandalism.
Base Residence / Dwelling Coverages:
| Coverage Type | Coverage Details | Average Coverage Amount/Limit |
|---|---|---|
| Dwelling Coverage | Covers the cost to rebuild your home after insured damage. | $1,000,000 |
| Outbuildings (detached structures) | Covers the cost to rebuild the detached structures (i.e. garages, sheds, fences). | $150,000 |
| Contents | Protects your belongings from damage or loss due to covered perils. | $750,000 |
| Personal Liability | Legal & medical costs if someone sues you for injury/property damage. | $1,000,000 |
| Voluntary Medical Payments | Pays limited medical expenses if someone is accidentally injured on your property, regardless of fault | $4,500 |
| Voluntary Property Damage | Covers small amounts for accidental damage you cause to someone else’s property (or damage caused by a minor in your care | $1,500 |
| Basic Water Damage | Protects against sudden and accidental internal water damage (e.g., burst pipes or overflowing appliances | $1,000,000 |
*Please note that the average coverage limits in the tables above and below are based on the dwelling coverage of $1 million and can vary by house and carrier.
Enhanced Water Protection:
| Coverage Type | Coverage Details | Average Coverage Amount/Limit |
|---|---|---|
| Sewer Backup Endorsement | Pays for damage caused by sewage or septic systems backing up into the home. | $100,000 |
| Ground Water Endorsement | Adds protection against damage from ground‑water seepage, which is not covered by standard policies. | $250,000 |
| Overland Water Endorsement | Covers damage from freshwater entering your home from rivers, lakes or heavy rainfall. This is typically optional and recommended for homes in flood‑prone areas. | $250,000 |
| Broad Water Damage Endorsement | A catch‑all rider that may combine overland water, sewer‑backup and ground‑water coverage and may also include protection for seepage or ice‑damming (depending on the insurer) | $250,000 |
*MyChoice recommends getting the enhanced water protection package if you live in flood-prone areas in Ontario, as mentioned in our latest study.
Home Insurance Price in Cambridge by Dwelling Type
Below is the average home insurance price in Cambridge, categorized by dwelling type:
| Type of Dwelling | Average Annual Home Insurance Premium |
|---|---|
| Detached | $1,149 |
| Semi-Detached | $1,057 |
| Freehold Townhouse | $988 |
Does Where You Live in Cambridge Affect Your Home Insurance?
Yes, where you live in Cambridge can impact your home insurance rates. Insurance providers consider the location as a factor in determining home insurance rates and coverage. Other factors that may affect your home insurance include the following:
Postal Codes With the Most Expensive Home Insurance in Cambridge
N1T is the most expensive postal code in Cambridge when it comes to home insurance premiums.
| Postal Code | Average Annual Home Insurance Premium |
|---|---|
| N1T | $1,178 |
Postal Codes With the Least Expensive Home Insurance in Cambridge
People living in the below postal code areas enjoy some of the cheapest home insurance rates in the city.
| Postal Code | Average Annual Home Insurance Premium |
|---|---|
| N3C, N3H | $1,124 |
How Cambridge Home Insurance Rates Compare to Nearby Cities
Cambridge’s home insurance rates sit comfortably in the middle compared to nearby cities, lower than Brantford and Guelph but higher than Waterloo and Kitchener.
| City | Average Annual Home Insurance Premium |
|---|---|
| Cambridge | $1,149 |
| Kitchener | $988 |
| Waterloo | $1,077 |
| Guelph | $1,319 |
| Stratford | $1,263 |
| Brantford | $1,386 |
How Cambridge Home Insurance Rates Compare to Provincial Average
Home insurance in Cambridge usually costs about $1,149 monthly, lower than the Ontario average.
However, calculating an average price for home insurance in Cambridge isn’t always straightforward due to the numerous variables involved in determining rates. Insurance companies consider the type of coverage you apply for, your property’s location, details, and additional homeowner information.
Each specific component impacts your overall rate. Consequently, even homeowners with similar properties residing in the same neighbourhood and sharing many personal details on their applications will likely obtain different rates.
Common Home Insurance Discounts in Cambridge
Certain insurers offer home insurance discounts that can significantly reduce your premium — sometimes by up to 20% when combined. Please note that these discounts depend on your property type, condition, the insurer and even external conditions like natural disasters or crime rates in your specific area. Talk to your broker or insurer to learn more about what discounts they offer in your area.
Here’s a look at the most common discounts you can get on home insurance in Cambridge:
| Discount Type | Average Percentage Savings | Average Discount Value |
|---|---|---|
| Multi-Line (Home + Auto) | 11.4% | $131 |
| Claims-Free Discount | 16.5% | $190 |
| Alarm System (Burglar) | 7.5% | $86 |
| Alarm System (Fire) | 5.0% | $57 |
| Membership Discount (CAA) | 10.0% | $115 |
| Non-Smoker Discount | 7.5% | $86 |
What Risks Affect Homeowners in Cambridge?
Cambridge homeowners face various risks impacting their properties and necessitating appropriate home insurance coverage. Some of these risks include the following:
Probability of Significant Disasters in Cambridge
On February 16, 2018, fast snowmelt and ice flows on the Grand River impacted Cambridge with flood warnings, forcing local evacuations and road closures.
The following MyChoice probability scores for Cambridge are based on historical data from the Canadian Disaster Database (CDD), which has tracked major disasters in Canada since 1950. These scores represent the relative likelihood that each type of significant event could occur at least once in Cambridge over the next decade. The comparison is made against both other regions in Canada and other types of events, helping illustrate where the greatest risks to homeowners may lie.
According to the CDD, an event is classified as significant if it results in 10 or more deaths, 100 or more people affected (injured, evacuated, or left homeless), an appeal for national or international assistance, historical importance, or severe damage that prevents a community from recovering on its own.
Housing Data in Cambridge
Below is some information regarding the population and housing in Cambridge according to the 2021 Census of Population.
Homeownership Rate by Age in Cambridge
Almost 3 in 4 young adults (25-39) own a house in Cambridge, which underscores the city’s attractiveness as a household among younger generations.
| Age Group | Homeownership Rate |
|---|---|
| 15 to 24 | 20.4% |
| 25 to 39 | 59.3% |
| 40 to 54 | 74.1% |
| 55 to 74 | 73.4% |
| 75 and over | 67.8% |
What Is Not Included in a Typical Home Insurance Policy?
Even if you’ve opted for a highly comprehensive home insurance policy, there are some risks that insurers explicitly don’t include as a covered peril. These are called “exclusions” by home insurers.
Here are the most common home insurance exclusions:
This is by no means an exclusive list of risks typically excluded from a home insurance policy in Cambridge. Talk to your home insurance provider to see what’s covered by your policy in case of loss or damage.
Why Do I Need Home Insurance in Cambridge?
While it isn’t necessary, getting home insurance in Cambridge is beneficial under the following circumstances:
- In case of a natural disaster (severe storms, floods, and winter conditions)
- In case of property damage (fire, vandalism, or accident)
- In case someone is injured on your property
- For mortgage requirements
- For peace of mind
How You Can Get Cheap Home Insurance in Cambridge
If you’re trying to save money on your coverage in Cambridge, our province page offers a lit of practical tips to make your life easier.