Just because home insurance in Chatham isn’t legally required, it doesn’t mean that you should do without it. A policy can protect you if a peril (e.g., flood, fire, theft, vandalism) damages your property or personal belongings. It can also cover you in the unfortunate event that someone gets injured on your property.
Home insurance policies have varying levels of coverage depending on your budget and needs. Learn more about how home insurance in Chatham works, what’s included in a standard policy, and how to save on premiums here.
How Does Home Insurance Work In Chatham?
When you get a home insurance quote in Chatham 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 | $973 |
| Enhanced Water Protection | – Sewer Backup Endorsement – Ground Water Endorsement – Overland Water Endorsement – Broad Water Damage Endorsement | $194 |
| Coverage Total: | $1,167 |
*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 Chatham by Dwelling Type
Below is the average home insurance price in Chatham, categorized by dwelling type:
| Type of Dwelling | Average Annual Home Insurance Premium |
|---|---|
| Detached | $1,167 |
| Semi-Detached | $1,074 |
| Freehold Townhouse | $1,004 |
Does Where You Live in Chatham Affect Your Home Insurance?
Yes, where you live in Chatham can affect your home insurance. Insurers calculate your premiums based on how risky you are to insure, and where your property is is one of the biggest contributors to that risk.
Here are some of the ways your home’s location can affect your insurance:
Postal Codes With the Most Expensive Home Insurance in Chatham
People living in the N7L postal code area in Chatham experience some of the most expensive home insurance rates in the city.
| Postal Code | Average Annual Home Insurance Premium |
|---|---|
| N7L | $1,189 |
Postal Codes With the Least Expensive Home Insurance in Chatham
N7M postal code area has some of the cheapest home insurance rates in Chatham.
| Postal Code | Average Annual Home Insurance Premium |
|---|---|
| N7M | $1,125 |
How Chatham Home Insurance Rates Compare to Nearby Cities
Chatham’s home insurance rates are on the lower side compared to neighbouring cities, making it more affordable than places like London and Windsor.
| City | Average Annual Home Insurance Premium |
|---|---|
| Chatham | $1,167 |
| Windsor | $1,422 |
| Sarnia | $1,368 |
| London | $1,606 |
| Stratford | $1,263 |
| Woodstock | $1,307 |
How Chatham Home Insurance Rates Compare to Provincial Average
Home insurance in Chatham usually costs $1,167/year, less than the provincial average of $1,423/year. However, these are just averages – your insurance rate may be higher or lower depending on several factors. For example, if your house is older, more expensive, or requires significant repairs.
As such, we recommend requesting quotes from different providers to understand how much home insurance in Chatham will cost you. Each insurer has its own criteria for determining premiums, so you may get different rates even for the same house.
Common Home Insurance Discounts in Chatham
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 Chatham:
| Discount Type | Average Percentage Savings | Average Discount Value |
|---|---|---|
| Multi-Line (Home + Auto) | 11.4% | $133 |
| Claims-Free Discount | 16.5% | $193 |
| Alarm System (Burglar) | 7.5% | $88 |
| Alarm System (Fire) | 5.0% | $58 |
| Membership Discount (CAA) | 10.0% | $117 |
| Non-Smoker Discount | 7.5% | $88 |
What Risks Affect Chatham Homeowners?
Erosion, floods, and storms are some of the most common risks that Chatham homeowners face. Here’s how each may affect your property and your choice of insurance:
Probability of Significant Disasters in Chatham
Between February 23 and March 2, 1985, a sudden thaw and heavy rain caused the Thames River to flood Chatham, affecting more than a thousand homes.
The following MyChoice probability scores for Chatham 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 Chatham 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 Chatham
Knowing more about the average home in Chatham can help you manage your expectations and plan accordingly. Below are statistics on Chatham housing, based on the 2021 Census of Population:
Homeownership Rate by Age in Chatham
People aged 55 to 74 have the highest homeownership rate in Chatham at 78.7%.
| Age Group | Homeownership Rate |
|---|---|
| 15 to 24 | 28.4% |
| 25 to 39 | 59.4% |
| 40 to 54 | 70.7% |
| 55 to 74 | 78.7% |
| 75 and over | 77.0% |
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 Chatham. 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 Chatham?
You may end up needing home insurance in Chatham if your home gets damaged unexpectedly. It can protect you from financial loss if you have to:
Another instance where a home insurance policy can help you is if someone gets hurt on your property. The payout can cover any legal or medical fees after an accident or injury.
Additionally, home insurance may help you secure a home loan. While home insurance is not mandatory in Ontario, some lenders may require it before you can take out a mortgage. As having a policy lowers the risk of lending to you, loan providers may even offer better rates or terms.
How You Can Get Cheap Home Insurance in Chatham
Visit our provincial page for practical tips on how to save money on your home insurance in Chatham.