Having comprehensive home insurance in Oakville, Ontario is important for protecting your home and giving you peace of mind. With the right policy, you won’t have to worry about covering damages to your home yourself. Here, learn everything about home insurance in Oakville.
Why Do I Need Home Insurance in Oakville?
Though not mandatory, having home insurance in Oakville is highly recommended. Home insurance will cover you in the following cases:
Loss or damage to your home
If your home is damaged by the frequent heavy winds or flooding in the city, home insurance will cover the damages and help you repair your property.
Loss or damage to personal belongings
If your personal belongings are damaged because of damage to your home, your home insurance policy will reimburse you for the cost of the items.
Unforeseen living expenses
Severe damage to your home could mean that it’s unlivable for a time. Your home insurance policy typically covers the cost of a hotel or other temporary accommodation while you wait for your home to be fixed.
Injury on your property
If someone is hurt on your property, you could be held liable. Your home insurance policy will cover medical bills, legal fees, and potential settlements against you.
Your lender will typically require proof of home insurance before you’re allowed to take out a mortgage.
How Does Home Insurance in Oakville Work?
As with other insurance products like tenant insurance or condo insurance, Oakville 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 Oakville. 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 Oakville 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 Oakville?
There are different ways that you can get a home insurance quote in Oakville. 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 Oakville. 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 Oakville Usually Cost?
Home insurance in Oakville usually costs $1,277 per year on average. However, the price could be higher depending on several factors, including:
Where you live plays a large role in the calculation of your insurance premiums. If you live in a rural area, the cost of home insurance is typically higher because you’re further away from amenities that lower your insurance premiums.
The closer your home is to a fire station or hydrant, the quicker it’ll take for a fire to be put out and the less it’ll cost to repair it. This means that your insurance premiums will be lower the closer you are.
Rebuild value is what it would cost to rebuild your home if it’s completely destroyed. The higher this value, the higher your insurance premiums.
Older homes typically cost much more to repair due to dated electrical wiring, plumbing, and materials used to build your home. As it’s more costly to repair an older home, your insurance premiums could be higher.
Why Are Oakville Home Insurance Rates so Expensive?
There are three factors that may be driving up Oakville home insurance rates. Here’s a quick explanation of why these things make premiums higher in Oakville:
- Greater number of older properties: Most homes in Oakville are quite old, so it’s more likely that they have older systems for heating, plumbing, and electricity. This increases your likelihood of filing a claim for a fire or flood.
- Higher real estate values: Real estate prices indirectly affect home insurance premiums. As home values go up, so do the cost of rebuilding and the amount of coverage you’ll need from a policy.
- Housing density: Oakville is densely populated, and most of its homes are connected houses or apartments with very little space between units. This increases the risk of spreading fires between homes.
What Determines the Cost of Home Insurance in Oakville?
The cost of home insurance in Oakville 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 Oakville:
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 Oakville 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 Oakville 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. Oakville 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 Oakville?
The risks that affect Oakville homeowners include the following:
Because of several creek systems that run through Oakville and its location on the banks of Lake Ontario, there’s a higher chance of flooding in the city.
Winter in Southwestern Ontario brings strong winds and freezing temperatures. The extreme cold in Oakville often causes water to freeze in the pipes, meaning there’s a high chance of them bursting and causing potentially thousands of dollars in repairs.
Strong winds often hit the city from Lake Ontario so there’s a greater chance of damage to roofs and home exteriors.
Theft or vandalism
s Oakville is one of the more expensive communities in the area, there’s a chance that homes could be a target of theft or vandalism.
Does Where You Live in Oakville Affect Your Home Insurance?
Yes, where you live in Oakville does affect your home insurance. Location is one of the biggest factors that goes into determining your home insurance premiums. Your provider will research details like the crime rate in your area and the chance of natural disasters causing damage to your home, and price your premiums accordingly.
For example, if you live close to Lake Ontario, your home will be more at risk of wind or flood damage, which could raise your insurance premiums. Also, certain areas of Oakville have higher crime rates, such as southern Bronte around Shell Park, and areas with a higher concentration of commercial establishments, such as around Home Depot by Lyons Lane near Sixteen Mile Creek.
Census Data: Housing Data in Oakville
Let’s take a look at housing data in Oakville from the 2021 Census of Population:
Type of Occupied Dwelling
Out of the occupied private dwellings in Oakville, nearly 60% are single-detached houses and 20% are apartments in buildings. Around 15% are townhouses (row houses) and the remaining 5% consists of semi-detached houses and apartments in duplexes.
Owner vs Renter Stats/Condo vs Non-Condo Owners
There are a total of 73,560 private households in Oakville, just over 77% are owned and the rest are rented.
The large majority of private dwellings in Oakville are non-condo types (83%) such as single-detached houses, apartments in buildings, and townhouses, while the remaining 17% are condos.
Private Dwellings by Period of Construction: New or Older Homes?
Nearly one-third (27%) of Oakville homes were built between 1960 and 1980, a little over a third (35%) between 1980 and 2000, and the rest (38%) between 2000 and 2021.
Major Repairs or Just Maintenance Needed?
Nearly all homes in Oakville only require regular maintenance and minor repairs (97%) while the rest need major repairs (3%).
How You Can Get Cheap Home Insurance in Oakville
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 Oakville 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 Oakville
Can you cancel home insurance in Oakville?
Yes, you can cancel your home insurance in Oakville. 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 Oakville home insurance fees tax deductible?
Generally, Oakville 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 Oakville real estate prices affect the cost of home insurance?
Yes, Oakville 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 an Oakville home is within the $1.6 million range, making it 42% more expensive than the Ontario average. This means that your insurance premiums will likely also be higher.
Do I need home insurance in Oakville for Airbnbs?
Yes, you need a specific type of home insurance in Oakville 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 Oakville home insurance rates?
Factors that insurance providers don’t consider when calculating Oakville home insurance rates include the following:
Sexual orientation and gender
How expensive is insurance for a home in Oakville compared to the rest of Ontario?
Insurance for a home in Oakville is about $100 lower than the provincial average of $1,368. 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 Oakville, the average cost of living is $2,167 per month, roughly the same as the Ontario average of $2,015. Oakville also experiences heavy winds of up to 120 km/hr from Lake Ontario. Winds that strong could cause serious damage to homes, hiking up your insurance premiums. One recent event occurred in May 2022, where strong winds caused road closures and widespread power outages because of fallen trees.
Consult your preferred home insurer to find out what other factors may cause your Oakville policy quotes from them to be higher than the provincial average.