How Does Home Insurance Work In Toronto?
When you get a home insurance quote in Toronto 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 | $1,513 |
| Enhanced Water Protection | – Sewer Backup Endorsement – Ground Water Endorsement – Overland Water Endorsement – Broad Water Damage Endorsement | $301 |
| Coverage Total: | $1,814 |
*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 Toronto, as it’s identified as one of the most flood-prone cities in Ontario in our latest study.
Home Insurance Price in Toronto by Dwelling Type
Below is the average home insurance price in Toronto, categorized by dwelling type:
| Type of Dwelling | Average Annual Home Insurance Premium |
|---|---|
| Detached | $1,814 |
| Semi-Detached | $1,669 |
| Freehold Townhouse | $1,560 |
Does Where You Live in Toronto Affect Your Home Insurance?
Yes, where you live in Toronto affects your home insurance. Certain areas pose higher risks for different perils and natural disasters, leading to increased chances of filing claims. As a result, different areas may have varying home insurance quotes for homes of similar size, value, and condition.
For example, Toronto’s Danforth-Greektown area is known as one of the city’s safer and more family-friendly neighbourhoods, so a home insurer may consider it less likely that you’ll file a claim. On the other hand, living in bustling Moss Park near the Downtown Core may get you higher quotes because of its historically high property crime rates. Living in densely populated neighbourhoods like Queens Quay and King West may raise concerns for your insurer about the risk of spreading fires in clustered homes.
Postal Codes With the Most Expensive Home Insurance in Toronto
M4N and M6E postal codes have above-average home insurance rates in Toronto.
| Postal Code | Average Annual Home Insurance Premium |
|---|---|
| M4N | $1,858 |
| M6E | $1,834 |
Postal Codes With the Least Expensive Home Insurance in Toronto
The M6K and M6J postal codes have some of the cheapest home insurance rates in Toronto.
| Postal Code | Average Annual Home Insurance Premium |
|---|---|
| M6K, M6J | $1,739 |
How Toronto Home Insurance Rates Compare to Nearby Cities
Toronto’s home insurance rates are among the highest in the region. Here’s how they compare to nearby cities.
| City | Average Annual Home Insurance Premium |
|---|---|
| Toronto, ON | $1,814 |
| Etobicoke, ON | $1,490 |
| Scarborough, ON | $1,142 |
| Vaughan, ON | $1,318 |
| Brampton, ON | $1,099 |
How Toronto Home Insurance Rates Compare to Provincial Average
On average, Toronto home insurance costs $1,814 annually, which is higher than the average Ontario home insurance rate.
Common Home Insurance Discounts in Toronto
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 Toronto:
| Discount Type | Average Percentage Savings | Average Discount Value |
|---|---|---|
| Multi-Line (Home + Auto) | 11.4% | $207 |
| Claims-Free Discount | 16.5% | $299 |
| Alarm System (Burglar) | 7.5% | $136 |
| Alarm System (Fire) | 5.0% | $91 |
| Membership Discount (CAA) | 10.0% | $181 |
| Non-Smoker Discount | 7.5% | $136 |
What Risks Affect Homeowners in Toronto?
Many homeowners in Canada are affected by similar risks. However, there are some specific risks which Toronto homeowners should keep an eye on, and these are:
This is by no means an exclusive list of risks typically excluded from a home insurance policy in Toronto. Talk to your home insurance provider to see what’s covered by your policy in case of loss or damage.
Probability of Significant Disasters in Toronto
On July 8, 2013, Toronto faced one of its worst flooding events as 126 mm of rain fell in a matter of hours, knocking out power for 300,000 people.
The following MyChoice probability scores for Toronto 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 Toronto 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.
Why Are Toronto Home Insurance Rates so Expensive?
There are three factors that may be driving up Toronto home insurance rates. Here’s a quick explanation of why these things make premiums higher in Toronto:
- Greater number of older properties: Most homes in Toronto 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: Toronto 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.
Housing Data in Toronto
Curious about the average Toronto home’s age, condition, and type? Here’s a simple overview of Toronto housing based on the 2021 Census of Population:
Homeownership Rate by Age in Toronto
Homeownership in Toronto is unsurprisingly less than in other cities in Ontario, this is largely due to the higher-than-average real estate costs in the city, making it harder for younger residents to obtain homeownership. Interestingly only around half of residents aged between 40 and 54 are homeowners, this average increases slightly to 65.5% for residents 55 or older.
| Age Group | Homeownership Rate |
|---|---|
| 15 to 24 | 19.5% |
| 25 to 39 | 33.8% |
| 40 to 54 | 53.6% |
| 55 to 74 | 62.6% |
| 75 and over | 68.9% |
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:
Why Do I Need Home Insurance in Toronto?
Home insurance isn’t mandatory in Toronto. However, it’s strongly encouraged that you get a policy because of these reasons:
How Can I Get Cheap Home Insurance in Toronto?
If you’re trying to save money on your preferred home insurance coverage in Toronto, visit our Ontario page for practical tips.