Your home is more than just a place to live – it’s your sanctuary. But in Mississauga, many homes are prone to damage caused by strong winds and flooding. That’s why it’s crucial to protect it with the right home insurance coverage.
Here, learn the basics of home insurance in Mississauga, including how it works, how much it costs, what can affect your premiums, and where to find the best rates possible.
Why Do I Need Home Insurance in Mississauga?
Home insurance is not mandatory by law in Mississauga, Ontario. However, it can be incredibly helpful in protecting your family from financial losses incurred by:
Flooding, windstorms, and heavy snowfall are becoming increasingly common occurrences in Ontario. Home insurance protects you by covering property damage from these and other natural disasters.
Damage to personal belongings
Several types of home insurance can also cover damages to your personal belongings, such as appliances, furniture, clothing, etc. This means you can get reimbursed for the cost of each covered item when they are damaged or destroyed.
Home insurance can cover the cost of medical and legal fees incurred by accidents or injuries that happen on your property.
: If your home is too damaged to live in, home insurance can cover the cost of your temporary accommodations, such as apartment or BnB rentals.
Aside from this, having home insurance can also increase your chances of securing a mortgage. Typically, lenders are more keen to finance people who are insured, as this ensures that their investment is well protected in the event of a natural disaster, break in, etc.
How Does Home Insurance in Mississauga Work?
As with other insurance products like tenant insurance or condo insurance, Mississauga 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 Mississauga. 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 Mississauga 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:
- 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.
- Detached private structure: This covers damages to private, detached structures on your property, such as a detached garage or tool shed.
- 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.
- 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.
- Personal liability coverage: This covers settlements and legal expenses in case someone is accidentally injured on your property.
- 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.
- 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.
Apart from the standard coverage offered by Ontario 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 Mississauga?
There are different ways that you can get a home insurance quote in Mississauga. 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 Mississauga. 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 Mississauga Usually Cost?
Home insurance in Mississauga, Ontario typically ranges between $828 to $2,116 a year. This is a bit on the high side compared to the average rates for the whole of Ontario. However, it’s on par with the average rates in neighbouring Toronto.
Bear in mind that insurance rates vary widely depending on a number of factors which we explore in more detail below.
What Determines the Cost of Home Insurance in Mississauga?
The cost of home insurance in Mississauga 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 Mississauga:
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 Mississauga 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 Mississauga 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. Mississauga 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 Homeowners in Mississauga?
The greatest risks that homeowners in Mississauga face are:
This is a big issue for many homeowners in Canada. In fact, flooding is considered the “biggest under-insured climate risk” in the country. In Mississauga, flooding can be a result of heavy rains and storm surges from Lake Ontario.
The winter months can bring about a spate of damages, including roof leaks, frozen gutters and downspouts, wood rot due to too much moisture, sidewalk and foundation cracks, and felled trees.
Canada experiences roughly 60 tornadoes a year, usually in June and July. They are more common in Saskatchewan, Manitoba, Alberta, BC, New Brunswick, and Ontario. Over the past few years, tornado damages in Canada have reached $300 million.
Does Where You Live in Mississauga Affect Your Home Insurance?
Yes, where you live in Mississauga affects your insurance rates. Policy rates in every Canadian city typically vary from postal code to postal code. Insurers take various factors into consideration when determining their rates, including the location of your home. Some of the key factors affecting your home insurance premiums based on location are:
Risk of natural disasters
Mississauga homeowners are prone to natural disasters such as floods and snowstorms – particularly those that live closer to the lakeshore.
Some neighbourhoods report higher incidences of crime than others. Insurers will charge higher premiums for homes in these areas to offset the risk of theft and vandalism.
Proximity to fire stations and hydrants
Being closer to a fire station or hydrant is generally better for your insurance rates. This is because it reduces your risk of bearing significant damage in case of a fire.
Census Data: Housing Data in Mississauga
Get a snapshot of the average home in Mississauga below. This section is based on housing data provided in the 2021 Census of Population:
Type of Occupied Dwelling
Over a third (37.1%) of Mississauga homes are single-detached houses. The second most common type of dwelling in the city is an apartment in a building with five or more storeys. Roughly 27.3% of Mississaugans live in these types of apartments.
Owner vs Renter Stats/Condo vs Non-Condo Owners
More houses in Mississauga are owned than they are rented. Seventy percent of homes are owned by their occupants, while only 29.6 % are rented.
Condominium dwellings make up only 28.2% of dwellings in Mississauga, while non-condos make up 71.8%.
Private Dwellings by Period of Construction: New or Older Homes?
Nearly 40% of dwellings in Mississauga were constructed before 1980. Only 23.3% of all dwellings were constructed between 2001 and 2021. The years 2016 to 2021 had the lowest rate of construction at only 3.4%.
Major Repairs or Just Maintenance Needed?
Just 4.8% of all dwellings in Mississauga are in need of major repairs. The remaining 95.2% need only regular maintenance and minor repair work.
How You Can Get Cheap Home Insurance in Mississauga
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 Mississauga 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.
FAQs About Home Insurance in Mississauga
Can you cancel home insurance in
Yes, you can cancel your home insurance in Mississauga. 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.
Mississauga home insurance fees tax deductible?
Generally, Mississauga 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.
Mississauga real estate prices affect the cost of home insurance?
Yes, Mississauga 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 Mississauga home is within the $920,000 range, making it higher than the Ontario average.
Though Mississauga’s average home prices are higher than those in Ontario, the average reflected above and reported in January 2023 is the lowest it’s been in the past two years. The real estate market in Mississauga has been on the decline for the past year, with semi-detached and detached house prices declining the most. Lowered prices and fewer sales may result in lower home insurance quotes in the future.
Do I need home insurance in
Mississauga for Airbnbs?
Yes, you need a specific type of home insurance in Mississauga 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
Mississauga home insurance rates?
Factors that insurance providers don’t consider when calculating Mississauga home insurance rates include the following:
Sexual orientation and gender
How expensive is insurance for a home in
Mississauga compared to the rest of Ontario?
Insurance for a home in Mississauga can be as much as $800 higher than the provincial average. Some factors which may affect this difference include the cost of living in this city, property values, and the incidence of natural disasters such as earthquakes and storms.
In Mississauga, the cost of living is about 8% higher than the provincial average. Mississauga is a flood-prone area, with serious damage caused by flooding in 2009 and a flash storm in 2013. Environmental assessment and floodplain mapping are currently being conducted to mitigate flooding, but potential solutions are still in the works. Consult your preferred home insurer to find out what other factors may cause your Mississauga policy quotes from them to be higher than the provincial average.