Whether you’re a first-time homeowner or you’ve owned your home in Ontario for years, it can be challenging to understand the ins and outs of home insurance. With so many coverage options, risk factors affecting premiums, and different insurance providers, you may feel too overwhelmed to decide what’s right for you.
Here, learn all about the basics of getting home insurance in Ontario, why you need it, and the different types of coverage available. Discover factors that can impact your home insurance premiums and how to save money on your policy.
How Does Home Insurance Work In Ontario?
When you get a home insurance quote in Ontario 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 | $1,187 |
| Enhanced Water Protection | – Sewer Backup Endorsement – Ground Water Endorsement – Overland Water Endorsement – Broad Water Damage Endorsement | $236 |
| Coverage Total: | $1,423 |
*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 Ontario by Dwelling Type
Below is the average home insurance price in Ontario, categorized by dwelling type:
| Type of Dwelling | Average Annual Home Insurance Premium |
|---|---|
| Detached | $1,423 |
| Semi-Detached | $1,309 |
| Freehold Townhouse | $1,224 |
Does Where You Live in Ontario Affect Your Home Insurance?
Yes, where you live in Ontario affects your home insurance. If you live in an area that exposes your home to more risks, this increases the likelihood of filing a home insurance claim. Because of this, some places will have higher or lower home insurance quotes, even for homes of similar size, value, and condition.
For example, homes located closer to water tend to have higher premiums because of the likelihood of water damage and flooding.
Most Expensive Cities to Insure a Home in Ontario
Thunder Bay is the city with the highest home insurance on average in Ontario at around $2,190. Next on the list is Timmins, starting the trend of cities from Northern Ontario being listed as some of the most expensive cities in the province.
| City | Average Annual Home Insurance Premium |
|---|---|
| Thunder Bay | $2,190 |
| Timmins | $2,051 |
| Kenora | $2,017 |
| Pembroke | $1,831 |
| Toronto | $1,814 |
| Elliot Lake | $1,803 |
| Richmond Hill | $1,756 |
| Huntsville | $1,750 |
| Sudbury | $1,750 |
| Gravenhurst | $1,734 |
Least Expensive Cities to Insure a Home in Ontario
Kicthener came in as the least expensive city for home insurance in Ontario, at around $988 per year. Waterloo, Orangeville, Collingwood and Brampton round out the top 5, interestingly, some are well within reach of the GTA.
| City | Average Annual Home Insurance Premium |
|---|---|
| Kitchener | $988 |
| Waterloo | $1,077 |
| Orangeville | $1,078 |
| Collingwood | $1,082 |
| Brampton | $1,099 |
| Kingston | $1,132 |
| Scarborough | $1,142 |
| Ottawa | $1,145 |
| Cambridge | $1,149 |
| Pickering | $1,156 |
Common Home Insurance Discounts in Ontario
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 Ontario:
| Discount Type | Average Percentage Savings | Average Discount Value |
|---|---|---|
| Multi-Line (Home + Auto) | 11.4% | $162 |
| Claims-Free Discount | 16.5% | $235 |
| Alarm System (Burglar) | 7.5% | $107 |
| Alarm System (Fire) | 5.0% | $71 |
| Membership Discount (CAA) | 10.0% | $142 |
| Non-Smoker Discount | 7.5% | $107 |
Common Risk Factors for Homeowners in Ontario
Some parts of Ontario are closer to water sources or fault lines, putting their homes at greater risk of damage or loss due to these factors:
Probability of Significant Disasters in Ontario
The summer of 2024 was Ontario’s second costliest flood season since 2013. Wildfires are also a common issue for the province. On May 30, 2019, a large wildfire near the Pikangikum First Nation in northwestern Ontario led to emergency evacuations by air.
The following MyChoice probability scores for Ontario 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 Ontario 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.
Ontario Home Insurance Trends
The cost of home insurance in Ontario has consistently gone up in the past few years. Three related reasons for increases in recent times are supply chain problems, the COVID-19 pandemic, and severe weather incidents.
As more homeowners had to stay put in their houses, this has seen an increased incidence of perils like residential fires. This may be due to increased use of space heaters or indoor smoking as people spend more time at home. Some homeowners have also added more improvements such as pools or decks as they spend more time at home, increasing their home values and the cost of constructing these improvements. Because of this, some Ontario home insurers have, in turn, increased the cost of their policies.
Apart from the pandemic, there have been recent weather incidents that caused significant damage in Ontario. Notable weather incidents in 2022 alone include Hurricane Fiona, record-breaking cold temperatures in Northern Ontario, and a derecho a.k.a. a group of thunderstorms that are as devastating as a tornado. With more incidents of severe weather damaging Ontario homes, more companies have had to pay out more policy claims. This has led more insurers to raise premiums.
Because there are more incidents where bad weather has damaged Ontario homes, there has been a greater need for replacement materials for repairs. However, due to supply chain issues worsened by the COVID-19 pandemic, there are delays and increased materials costs.
This also increases costs for insurers as they’ll have to cover the expense of a policyholder’s temporary housing during the rebuild. As a result, policies have gotten more expensive over the years.
Housing Data in Ontario
Wondering about the average type of home in Ontario and what condition it’s in? Based on the 2021 Census of Population, here’s a quick overview of housing in Ontario:
FAQs About Home Insurance in Ontario
How much is home insurance in Ontario?
The average cost of home insurance in Ontario is around $1,423, depending on the type of dwelling, location, and other factors. Home insurance costs differ between home insurance providers. Note that several considerations can increase or decrease the cost of your Ontario home insurance, such as your home’s value and the property’s condition.
For a better overview of the cost of home insurance in Ontario, talk to an insurance broker or look up quotes on MyChoice.ca.
Is home insurance mandatory in Ontario?
No, home insurance isn’t mandatory in Ontario. However, if you take out a mortgage on your home, your lender may require you to get coverage as a condition of getting a loan.
It’s also highly recommended that you get home insurance even if it’s not mandatory, so you can protect your house and personal property in case of unforeseen events like fires and hailstorms.
Do I need home construction insurance in Ontario for my renovation?
Yes, if you’re planning a major home construction or renovation project in Ontario, home construction insurance will protect you and your home during the process.
Also known as builder’s risk insurance, home construction insurance provides coverage in the event of damage or loss to your home and construction materials during the construction process. Some companies that offer this policy type even have liability coverage in case someone gets injured on your property during construction.
What is the home insurance claims process in Ontario?
The home insurance claims process in Ontario varies between insurers, but it generally consists of the following steps:
1. Report the claim: Contact your insurer and inform them about the damage or loss, including relevant details and evidence like videos or photos.
2. Claim evaluation: Your insurer will assign an adjuster, who will schedule an assessment of the value of any loss or damage.
3. Approval or denial: After the home inspection and evaluating your documentation, your insurer will either deny your claim or approve it, offering a settlement for repairs or replacement of damaged property.
4. Claim resolution: If you accept the offer, the payment will be made. If not, you can negotiate with your insurer or file a dispute with the Financial Services Regulatory Authority of Ontario (FSRA).
Can you cancel home insurance in Ontario?
Yes, you can cancel your home insurance policy in Ontario. The process may vary depending on your insurer and policy terms.
Generally, you’ll need to contact your insurance provider to let them know. Some insurers may require written notice of cancellation by mail or email.
Keep in mind that if you cancel your policy before its expiry date, you may be subject to penalties or cancellation fees.
Do I need home insurance for Airbnb in Ontario?
Yes, you may need home insurance for Airbnb in Ontario. While Airbnb has some host protection insurance, its coverage is limited and may not cover all types of liabilities or damages if you’re using your home for short-term rentals. Having a home insurance policy can provide additional protection and peace of mind.
Note that renting out your property as an Airbnb without telling your insurer may void your policy, and not all home insurance policies include coverage for short-term rentals. Check with your home insurance company to see if your policy has this protection or if you need to get additional coverage.
I have a vacation home in another city in Ontario. Can I insure that home too even if I don’t always live there?
Yes, you can insure your vacation home in another city in Ontario even if you don’t always live there. There are insurance policies specially tailored to cover seasonal or vacation homes to protect your property, belongings, and other liabilities from damage or loss.
Typically, these policies offer coverage for damages due to risks like fire, theft, and water damage. They may also have coverage for additional situations such as temporary living expenses if a covered risk makes your vacation home uninhabitable.
Home insurance companies have different requirements and limitations for vacation home insurance. In some cases, you may be required to take out additional coverage or accept different terms and conditions.
Is fire insurance mandatory in Ontario?
No, fire insurance is not mandatory in Ontario. However, it’s highly recommended that property owners get it to cover damages or loss to their property caused by fire, smoke, and other related perils.
Note that some Ontario mortgage lenders may require borrowers to have fire insurance coverage as a loan condition. This is because the property is collateral for the loan, and the mortgage lender may require coverage to protect the property from loss or damage.
Can I bundle home insurance with auto insurance in Ontario?
Yes, you can bundle home insurance with auto insurance in Ontario. Insurance companies typically offer bundled packages, and getting one can lead to big cost savings. It can also be more convenient for managing your insurance policies and premium payments, so you should compare bundles between insurers to see what discounts and levels of coverage they offer.
It’s my first time owning a house in Ontario. What type of home insurance should I get?
Before choosing a home insurance policy, first-time homeowners should consider the following factors:
• Financial capability
• Risk of exposure to specific risks in their area, such as flooding or earthquakes
• Home value and condition
If you’re on a low budget and live in an area that isn’t prone to natural disasters or crime, a basic policy may be enough for your needs. But if you want to cover all your bases, comprehensive home insurance will help you rest easy.
Talk to your insurance provider to find the best option for your budget and the coverage you need.
Who has the best home insurance rates in Ontario?
There’s no definitive company that offers the “best” home insurance rates in Ontario. This is because different providers will have their own processes for assessing the cost of providing coverage, so premiums vary from company to company for the same homeowner-applicant.
To find the best Ontario home insurance rates, compare offers through MyChoice’s home insurance calculator. We can help you find the most affordable options on the market.
Will I be charged if I switch home insurance providers in Ontario?
Yes, you may be charged if you switch home insurance providers in Ontario. Depending on the terms of your current policy, your provider may charge a fee for cancelling your policy before its expiration, while others don’t. Review your policy and talk to your provider to prepare for potential penalties.
What companies offer high-risk home insurance in Ontario?
Most insurance companies in Ontario offer high-risk home insurance. However, the rates that they’ll present will vary depending on their assessed risk of insuring your property in your area, as well as the factors that make you “high-risk”.
High-risk home insurance can be much more expensive than a standard policy, so compare rates through MyChoice to find affordable coverage for your home.
What is a home insurance peril?
A home insurance peril is a risk or event that may cause damage or loss to your home, covered by your home insurance policy. Examples of perils typically covered by standard home insurance policies in Ontario are:
• Hail and ice damage
• Fire and smoke
• Damage from lightning strikes
• Theft
• Vandalism