Quick Facts About Home Insurance in Toronto
- Toronto home insurance is MORE expensive than the Ontario average.
- The average annual cost of home insurance in Toronto is around $1,585.
Quote data from MyChoice.ca, November 2024
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:
Break-ins
With 3,001 residential break-ins reported to the Toronto Police in 2022, break-ins are a serious risk in Toronto that can result in property damage and theft.
Flooding
Because of thawing snow in the spring and the city’s low elevation, Toronto experiences flash floods. This can cause serious water damage to your home, especially if you have a home with a basement.
Cold temperatures:
Toronto temperatures have been known to drop as low as -30°C, so Toronto homeowners need to be vigilant against freezing or burst water pipes in the winter.
Fires
Toronto’s high home and population density mean fires can spread swiftly between homes.
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.
How Much Does Home Insurance in Toronto Usually Cost?
It’s hard to give a definitive answer to the typical cost of home insurance in Toronto, as your quotes are affected by factors like your home’s age and value, your policy type, and your location. The cost also differs between home insurance companies as each one has different methods for assessing risks and costs of coverage. This is why premiums differ between providers.
Expect to pay a premium within a range of $1,034 to $2,068 annually for Toronto home insurance. On average, Toronto home insurance costs $1,585 annually, which is higher than the average Ontario home insurance rate.
Quote data from MyChoice.ca, November 2024
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.
Compare quotes using MyChoice to see how much home insurance costs in your Toronto neighbourhood. This will help you find the most competitive quotes for your area so you can find the best deal no matter where you live.
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 | $1,670 |
M6E | $1,643 |
Quote data from MyChoice.ca, November 2024
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 | $1,488 |
Quote data from MyChoice.ca, November 2024
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:
Type of Occupied Dwelling
Nearly half (46.7%) of Toronto’s occupied dwellings are apartments in a building that has five or more storeys. Single-detached houses trail at a distant second, comprising 23.3% of all occupied Toronto dwellings.
Owner vs Renter Stats/Condo vs Non-Condo Owners
There’s a near-even split between homeowners and renters in Toronto. 51.9% of Toronto homes are owned, with 48.1% rented. 30.4% of owned homes are part of a condominium development in Toronto, while 69.6% are not.
Private Dwellings by Period of Construction: New or Older Homes?
Most of Toronto’s private dwellings are older buildings, with 29.3% of homes constructed in or before 1960 and 28.8% of homes constructed between 1961 to 1980. Only 7.3% of Toronto homes were built from 2016 to May 2021.
Major Repairs or Just Maintenance Needed?
Most Toronto homes need only regular maintenance and minor repairs (93.6%). Only 6.4% of Toronto’s private dwellings need major repairs.
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% |
Average Home Price in Toronto by Dwelling Type
Below are the average values of homes in Toronto, categorized by dwelling type:
Type of Dwelling | Average Value |
---|---|
Detached | $1,617,500 |
Semi-Detached | $1,360,000 |
Freehold Townhouse | $1,344,500 |
Toronto Population Growth
Toronto’s population continued to increase from 2,731,571 to 2,794,356 people between 2016 and 2021, indicating a growth rate of roughly 2.29% over the specified five years.
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:
Criminal activities
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.
Earthquakes
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.
Flood damage
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.
Insect 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
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.
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:
Liability coverage
If someone accidentally gets hurt on your property, liability coverage can help you pay for legal expenses or settlement costs.
Coverage for loss or damage
Your home is at risk of suffering expensive damage or loss due to natural disasters or other perils like theft and vandalism. A home insurance policy can keep you from becoming house-poor if you need to rebuild your home or find a new one. It can even cover the cost of temporary housing as your home is repaired.
Mortgage terms
Lenders and financial institutions like banks may require you to get a home insurance policy as a condition for getting a mortgage loan.
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.