What Impacts the Cost of Home Insurance in Ontario?

Posted on November 12, 2022November 24, 2022

The cost of home insurance in Ontario can vary significantly from one homeowner to another. This is because there are many factors that go into determining the cost.

To help you understand how it’s determined and what factors have the greatest impact on your premium, we’ve put together this guide.

Why Should You Get Home Insurance?

You should get home insurance in Ontario because it protects your home and possessions from damage. Home insurance helps you recover from damage, replace, or repair damaged items, and recover from theft or vandalism. It will also help you cover the cost of a natural disaster, fire, or another unexpected event that causes damage to your home.

Home insurance can also protect you if someone is injured on your property. For example, if someone slips in your driveway and breaks their leg while visiting you at home, they could sue you for thousands of dollars in medical bills—even though it was an accident!

With proper coverage, this won’t happen because the insurance company will pay any legal fees associated with such a claim before they’ll ever ask for money out of pocket from either party involved.

How is the Cost of Home Insurance Calculated?

The cost of home insurance in Ontario is calculated based on several factors, including the value of your home and the type of coverage you choose. To get an accurate estimate of your monthly premium and understand how it’s calculated, let’s look at key factors that affect your rate.

1 – Location
The location has a lot to do with the cost of home insurance in Ontario. Where you live can affect the likelihood that your home will need to be repaired or replaced, as well as the chances of a natural disaster.

2 – Replacement Cost of Home
According to the Insurance Bureau of Canada, replacement cost insurance is an agreement between you and your insurer that states how much money will be paid out for repairs or rebuilding your home in case of a claim. Replacement costs are also based on current building codes and standards in Ontario.

3 – Availability of Emergency Services
Many factors impact the cost of home insurance in Ontario. One you may not have considered is how close your home is to emergency services. How far away various emergency services are from your house determines how long it will take them to get there if an emergency occurs (like a fire).

4 – Age of the Home

You will pay more for home insurance if you live in a house that is older than 25 years. Why? Because your home is more likely to need repairs or replacement, and it may not be as energy efficient as newer models.

5 – If You Use Your Home as a Business
If you use your home as a business, the cost of your insurance will be greater than it would be for an owner-occupied residence. The reason for this is that businesses are high-risk propositions. In addition to the increased liability risks associated with having a business in your home, you are likely to entertain customers more than in other homes.

6 – Previous Claims
The number of claims you’ve filed in the past can affect your rates. If you have had a claim, it’s important to get the coverage you need now and in the future. You may also pay more for insurance if your home is older or has structural damage that hasn’t been repaired yet.

7 – Potential of Natural Disasters
If you live in an area prone to natural disasters such as floods or fires, expect to pay more for coverage. The same goes for homes with pools or docks—if there’s a potential danger of water damage, you’ll likely have to shell out more for insurance.

8 – Improvements & Additions
If you add a deck, or a patio, or a swimming pool—or anything else that extends your home’s living space—be sure to buy an insurance policy for it. Your home insurance policy will not cover these improvements because they’re considered additions. The same goes for detached garages (a separate structure) and additional stories on top of your existing house.

Go with the Coverage Right for Your Lifestyle

Home insurance is a necessity for anyone who owns a home. While the cost may seem scary at first, it’s worth it to know that your home will be protected if something happens.

Know exactly what kind of coverage you need before choosing an insurer. Many homeowners don’t realize what they’re paying for with their home insurance in Ontario policy—and this can lead to overpaying for protection that doesn’t protect them from anything except higher premiums.

Overall, the cost of homeowners insurance in Ontario is going to depend on several factors including factors of car insurance St. Catharines. If you want to know exactly how much your policy will cost, we recommend speaking with a licensed home insurance broker to help you find the best solution for your specific situation.