Milton homeowners may not be required by law to get a home insurance policy, but it’s still worth getting for a multitude of reasons. With a home insurance policy, your home, possessions, and attached buildings like a gazebo or toolshed will be covered from unforeseen events like fires and earthquakes. Home insurance can also cover your liability in case of accidental injuries or damage to your property.
Home insurance has standard inclusion, add-ons, and exclusions depending on your chosen insurer and level of coverage. Learn how home insurance works, why you need a home insurance policy, and which risks Milton homeowners need to prepare for.
Why Do I Need Home Insurance in Milton?
Home insurance isn’t legally required for Milton homeowners. However, having a home insurance policy can give you peace of mind because it protects your house and belongings from damage or destruction due to natural disasters and other risks. Here are just a few of the many good reasons to get Milton home insurance:
Here are some compelling reasons why you should get Milton home insurance:
Protection for your home and belongings
Your home and personal possessions are prone to damage or loss due to unforeseen events like flooding or earthquakes. A home insurance policy can provide much-needed funds for repairs, restoration, or replacements.
Temporary housing coverage
While many homeowners account for the financial risk of damage or destruction of their homes, few consider the hidden cost of temporary lodgings during repairs or restoration. A home insurance policy can cover expenses for temporary accommodations like an Airbnb or hotel.
Despite your best efforts, accidents can happen in your home, causing damage to property or injuries to someone in your home. Home insurance covers your liability in these situations, helping you pay related expenses like medical bills and legal fees.
Your bank or lending institution in Milton may have required you to get a home insurance policy before granting your loan. This is because home insurance reassures your lender that your property is protected from damage or loss due to insured risks like fires or windstorms.
How Does Home Insurance in Milton Work?
As with other insurance products like tenant insurance or condo insurance, Milton home insurance gives you financial coverage for your home in the event of certain unforeseen events. By purchasing a home insurance policy, you can file a claim that allows you to handle the cost of damage or losses covered under your policy terms.
There are three types of home insurance policies that you can buy in Milton. Here’s a basic overview of each type:
This is usually the most affordable type of home insurance, where you can choose coverage only against specific perils. If it’s not listed in your basic policy, your insurer won’t give you coverage for that risk.
This is typically the most expensive option but also the one that offers the most protection for your home and belongings in it. Under comprehensive home insurance, you’ll have protection against all risks that aren’t explicitly excluded, as well as risks that don’t require optional add-ons.
This mid-price option offers comprehensive coverage for your home but basic coverage for your personal belongings. This means your home will be protected from all risks except those that need add-ons or are specifically excluded, while your possessions are only protected against risks listed in your policy.
The typical Milton home insurance policy may come with these types of home insurance coverage and liability coverage. Here’s a quick description of each standard coverage inclusion:
- Additional living expenses: If you’re suddenly displaced from your home because of an insured risk, your policy will also cover the cost of temporary housing.
- Detached private structure: This covers damages to private, detached structures on your property, such as a detached garage or tool shed.
- Dwelling: This covers damages to your home (a.k.a. your dwelling) and its attached structures, like a garage. Coverage is typically for damages caused by risks such as lightning or fire, depending on the terms of your policy.
- Personal liability coverage: This covers settlements and legal expenses in case someone is accidentally injured on your property.
- Personal property: Home insurance policies also cover your personal property, such as furniture and appliances. Note that some special or high-value items like artwork may need additional coverage.
- Voluntary medical expenses: This coverage helps you pay for the medical expenses of a person you’ve unintentionally injured on your property or someone who accidentally hurts themselves on your property. This usually covers up to one year of expenses up to one year from the time of injury, with certain cost caps.
- Voluntary property damage: This covers direct damage or loss that you’ve unintentionally caused to someone else’s property. This also applies to unintentional loss or damage caused by a minor who is 12 years old or younger in your care.
Apart from the standard coverage offered by Milton home insurance policies, there are other types of coverage you can purchase for extra protection for your property. These are some of the most common coverage add-ons:
- Credit and debit card forgery: This additional coverage will offset any financial losses or other damage you suffer because of credit or debit card forgery.
- Earthquakes: This add-on covers damage or losses due to earthquakes.
- Flooding: Protection from flooding typically includes both overland water and sewer back-up coverage. While you may opt to purchase these water-related add-ons separately, you may want to combine them into a flooding protection package because of severe weather and other regional risks.
- Freezer food: This protects food in your property’s freezers if your freezer malfunctions or there’s a power outage.
- Home sharing: Standard policies don’t cover loss or damage caused when you rent out your home. This add-on covers your property if you plan to use it for short-term rentals on sites like Airbnb.
- Identity theft: This covers the cost of replacing crucial documents for identification, such as your birth certificate and driver’s licence.
- Lock replacement: Some insurers offer to cover the cost of replacing your home’s locks.
- Mass evacuation: If the government issues an evacuation order due to an incident like a flood, this add-on covers some expenses incurred during your absence from your home.
- Overland water: Rainfall or thawing snow can cause nearby freshwater and wastewater sources to overflow beyond their typical levels. This add-on covers damage caused by this excess water when it seeps into your property.
- Personal valuables: Standard plans offer limited coverage known as riders for items like jewelry and artwork. This add-on increases the limits for these items in the event of loss or damage.
- Sewer backup coverage: If sewage or wastewater comes up from a main sewer, this add-on will cover the damage and losses caused.
Who Provides Home Insurance Quotes in Milton?
There are different ways that you can get a home insurance quote in Milton. Here are the four providers that you can use or contact for home insurance rates:
Insurance brokers can represent you as a buyer and get quotes from multiple insurance companies, as well as advice on choosing a policy.
A direct writer is an insurance company that doesn’t have independent agents offering their quotes and policies. Typically, direct writers offer their products through their official websites and/or their call centres.
Insurance agents are independent professionals who can provide quotes and policy information from the companies they work with.
Insurance aggregators are online platforms like MyChoice that allow you to compare rates and coverage options from multiple providers. Because these allow you to input your information and receive quotes from multiple providers in one place, this can save you time and effort.
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:
If your home was damaged due to criminal activity, it won’t be covered by your insurance policy.
Damage from tenants
Generally, home insurance companies require specific coverage for homeowners/landlords who plan to rent out their properties. A standard home insurance policy won’t include coverage if you rent your home out and the tenant causes damage.
Most policies exclude this risk, but you can cover earthquake losses and damage as an add-on to a standard policy.
Failure to maintain your home
Damage or losses caused by poor home upkeep (e.g., clogged storm drains, broken bannisters) won’t be covered, as your insurer deems it your responsibility to manage wear and tear.
Flooding is typically not covered by a standard policy, but it may be included as an add-on.
Home business activities
Home businesses will need separate home-based business insurance to cover home or equipment damage.
Because this is considered a preventable risk, most insurers don’t cover insect damage.
Mortgage or property taxes
These are separate expenses handled by policy owners as they’re unrelated to your home insurance policy.
Mould caused by poor home maintenance is typically excluded by home insurance policies. Note that this is separate from mould caused by an insured peril, which will be covered by your policy.
Vacant dwelling risks
Many insurers may void your insurance if you leave your home vacant for a prolonged period.
This is by no means an exclusive list of risks typically excluded from a home insurance policy in Milton. Talk to your home insurance provider to see what’s covered by your policy in case of loss or damage.
How Much Does Home Insurance in Milton Usually Cost?
The average cost of home insurance in Milton is approximately $1,151 annually. Note that your own Milton home insurance quotes may be higher or lower than the average due to factors like your location’s history of past claims, crime rates, and the incidence of natural disasters.
For example, if your Milton neighbourhood has a higher risk of flooding or older or poorly maintained homes, your home insurance premiums are likely to be higher. On the other hand, living in an area that rarely floods or a neighbourhood with mostly new homes and updated utility systems can make your home insurance more affordable.
What Determines the Cost of Home Insurance in Milton?
The cost of home insurance in Milton varies depending on several considerations, such as your zip code, your property type, and even your credit score. Here are some of the different cost factors for home insurance in Milton:
Detached private structures like tool sheds, pool houses, and gazebos may increase your home insurance premiums. Further, a pool typically increases your premiums because of the increased risk of drowning, as well as the extra cost of maintaining a surrounding fence and lock. Make sure your home insurance covers all of your detached structures.
The majority of Canadian provinces use your credit score to determine your home insurance premium. This is because it’s often perceived that a bad credit score increases the risk of providing home insurance, as it increases the odds of late or non-payment of premiums.
If your home is older, in poor condition, or needs to update systems like heating and plumbing, it may be pricier to insure. This is because older electrical, heating, and plumbing systems increase the risk of certain accidents like fires and water damage from leaks.
If you live in an area prone to natural disasters like earthquakes or flooding, your premiums may be higher. Insurers also tend to charge higher premiums in areas where more homeowners have filed claims over recent years.
Replacement cost is based on how much it would cost to rebuild your home at its present condition and value. The higher your home’s present value, the more expensive it is to insure. Note that when factoring in replacement cost, you’ll need to inform your home insurer of any expensive items or upgrades like jewellery or artwork which will need extra coverage.
Past Claims History
Simply put, the more claims you have in a 10-year period, the higher your monthly premiums will be. As a general rule, make sure that the cost of your potential claim is higher than your policy deductible, which is the amount you have to pay before your insurer covers the rest.
Some insurance providers will ask you to disclose the number, type, and breed of any pets you may have, as some pets are considered an additional liability risk.
Whether you live in a condo unit or a single-detached home, different types of dwellings will be evaluated differently by an Milton insurer as each comes with different risks.
Renovations And Improvements
Some improvements can lower or increase your home insurance premiums. For example, converting a room into a home theatre may increase your home’s present value, so your premiums may go up. On the other hand, improvements that increase home safety like an alarm system may lower your premiums. Note that you should tell your home insurer both before and after you renovate your Milton home.
The average asphalt shingle roof will begin to wear down after approximately 10 to 15 years. Unless it’s properly maintained and repaired, your roof may increase the risk of letting water leak in and damage your house. Milton home insurers may lower your quotes if they see that your home’s roof is made with high-quality, durable materials.
Smoking Or Non-Smoking Policyholders
If you’re a non-smoker, an insurer may offer lower premiums as they consider it less likely that a cigarette or other smoking device will start a fire in your home.
While conducting business in your home won’t always increase your home insurance premiums, this depends greatly on the kind of business you’re running. For example, you can expect to pay more if you’re listing your home for short-term rentals or running a home-based catering company because there is more risk of liabilities or accidents.
Type Of Coverage You Choose
If you get a policy with a higher deductible, this will result in a lower premium. Additionally, the higher the coverage and the more risks you are protected against, the higher your premiums will be.
Your Chosen Insurer
Different insurers may offer varying quotes even for the same type of policy. Coverage costs vary between companies, so it’s important to shop around to find the best deal.
What Risks Affect Milton Homeowners?
Milton homeowners need to be vigilant against certain risks that could damage or even destroy their property. Here are some of the most common risks that may affect homeowners in Milton:
As springtime thaws snow and ice, Milton homeowners need to take precautions against excess run-off. When water levels rise beyond their usual levels, this can cause flooding in basements and lower-lying areas of the town.
Fires are a constant threat that can be started by a variety of risks in your Milton home, such as old or defective wiring or a carelessly discarded cigarette. A blaze can quickly spread and cause devastating damage, but you can take precautions by getting home insurance and installing a fire detection system.
Deadly windstorms occasionally tear through Ontario, causing injuries, property damage, and even death. In 2014, a windstorm was reported to have caused a shed to be ripped out of a backyard as well as a store sign to fly and damage a car. More recently in 2018, a windstorm felled a tree and killed two men in Milton, so homeowners may want to get home insurance for property coverage.
When thawed snow or excess rain cause freshwater or wastewater sources to exceed their usual levels, water from these sources may seep into your home and cause damage. This is one of the primary reasons for Milton home insurance claims, but you’ll typically need additional coverage for protection against this risk.
How You Can Get Cheap Home Insurance in Milton
If you’re trying to save money on your preferred home insurance coverage, here are some important steps to take:
Comparison shopping between different providers will help you find the best rate for your desired policy type. Use an insurance aggregator like MyChoice to get and examine immediate quotes from various Milton home insurers.
Increase your deductible
You can ask your insurer if you can increase your deductible, a.k.a. the amount you pay before your insurer pays out the claim. Increasing this reduces the risk for your insurer that you’ll submit a claim, so they may offer to lower your premiums.
Bundle with auto insurance
Some companies offer bundled home and auto insurance at a good discount for both policies.
Renovate old home systems like wiring and plumbing
Renovating to remove known risks like faulty wiring and old plumbing may help reduce your premiums.
While hefty annual premium payments may be daunting, some insurance providers give you a discount in exchange as it reduces their administrative costs.
Install monitored alarms
The safer you make your home against thieves, the higher the chances that you’ll go claim-free. This may convince your home insurer to offer lower premiums. Install monitored home security systems to deter break-ins and get immediate notifications of disturbances.
Does Where You Live in Milton Affect Your Home Insurance?
Yes, where you live in Milton can affect your home insurance. Home insurers examine many considerations before computing your premiums, and your location in Milton is a major factor. Here’s why where you live in Milton can cause your home insurance premiums to be more affordable or more expensive:
Simply put, the lower the crime rate in your Milton neighbourhood, the cheaper your home insurance premiums will be. This is because your lowered exposure to crime also reduces the chance of injuries or property damage that need to be covered by your home insurance policy.
Local claims history
The more home insurance claims that have been filed in your Milton neighbourhood, the higher your home insurance premiums will be. This is because your home insurance company deems it more likely that you’ll also file a claim in the future.
Proximity to fire hydrants and fire stations
Because fires are always a devastating risk to your home, being near a fire hydrant or fire station reassures your insurer that there’ll be a swift response to a blaze. This reduces the chances of suffering serious property damage or destruction in the event of a fire, which in turn lowers your home insurance premiums.
Census Data: Housing Data in Milton
Curious about the average age and condition of homes in Milton, or what the most popular type of home dwelling is? Here’s a simple overview of Milton housing data according to the 2021 Census of Population:
Type of Occupied Dwelling
Over half of the occupied dwellings in Milton are single-detached houses (56.7%), while 22.8% of occupied dwellings are row houses. Semi-detached houses are placed in third at 9.4%.
Owner vs Renter Stats/Condo vs Non-Condo Owners
Most Milton residents are homeowners, with 82.6% of a 25% sample data set listed as homeowners compared to 17.4% who rent their homes. An overwhelming majority of those surveyed live in occupied dwellings that are not condominiums (86.8%) compared to just 13.2% who live in Milton condominiums.
Private Dwellings by Period of Construction: New or Older Homes?
Most Milton dwellings are newer, with 21.9% of dwellings constructed between 2006 to 2010, 18.3% constructed between 2011 to 2015, and 16.1% constructed between 2016 to 2021. Just 5.4% of homes in Milton were built in 1960 or earlier.
Major Repairs or Just Maintenance Needed?
Most Milton homes are well-maintained, as 97.3% of homes need only regular maintenance and minor repairs. Just 2.7% of homes in Milton need major repairs.
FAQs About Home Insurance in Milton
Can you cancel home insurance in Milton?
Yes, you can cancel your home insurance in Milton. Check your policy’s terms and conditions for any fees or penalties you may incur, as these are typically charged if you cancel your policy before its end date.
Are Milton home insurance fees tax deductible?
Generally, Milton home insurance fees are not tax-deductible as they’re usually considered personal expenses. However, they may be tax-deductible in certain circumstances, such as running a home-based business or having a designated office area in your home. Consult a tax professional to learn if your insurance policies can be considered deductibles in your situation.
Do Milton real estate prices affect the cost of home insurance?
Yes, Milton real estate prices affect the cost of home insurance. Because high real estate prices translate to higher repair or restoration costs in the event of loss or damage, home insurers may charge higher premiums in higher-priced areas. The average price of a Milton home is approximately within the $1,100,000 range, making it much higher compared to the Ontario average.
The average price of a home in Milton went up by $77,938 from February 2023 to March 2023, which is over 7% in just one month. Despite the real estate price surge in Milton, both active listings and sales have gone down this year. The increased prices but reduced interest from buyers may affect the price of Milton home insurance.
Do I need home insurance in Milton for Airbnbs?
Yes, you need a specific type of home insurance in Milton for Airbnbs. Property owners who run Airbnbs can apply for a customized rental insurance policy to protect against property damage or liabilities.
What factors aren’t used to calculate Milton home insurance rates?
Factors that insurance providers don’t consider when calculating Milton home insurance rates include the following:
Sexual orientation and gender
How expensive is insurance for a home in Milton compared to the rest of Ontario?
Insurance for a home in Milton is lower than the provincial average of $1,368. Some factors which may affect this difference include the cost of living in this town, property values, and the incidence of natural disasters such as earthquakes and storms.
In Milton, the cost of living is about 6% lower than the provincial average. Milton has experienced windstorms in 2014 and 2018 which have posed serious threats to both lives and property. Their recent incidence may make your insurer deem them more likely to occur, affecting your premiums. Consult your preferred home insurer to find out what other factors may cause your Milton policy quotes from them to be higher than the provincial average.