It is difficult for a homeowner in Ontario to make a comparison with other insureds of what they are paying for homeowner’s insurance in Ontario.  This is because there are so many variables. It is possible to do a rough estimate based on older statistics. Keeping in mind one of the biggest metrics used when determining premiums is the replacement of the house in the case of a claim.

Using Old Insurance Cost Metrics For Forecasting

Based on 2016 Estimates

It has been quoted in the past that a house worth between $100K to $300K in Ontario would cost between a minimum of $27 a month to an average of $72. to a max of $134. Calculated into annual costs it would be;

  • $324. Year minimum
  • $864. Year average
  • $1,608. Year maximum

Looking back at the average cost for insurance in 2015 some familiar with home insurance are claiming the average cost was $780. For the year. What this indicates is about a 10% increase from 2015 to 2016. Which would be a fair assessment as it is generally acknowledged that home insurance can increase by about 10% each year depending on a variety of different circumstances.

Based on this forecasting and taking the average cost for home insurance as being about $864. For 2016 one can multiply this by 20% to get the average cost of home insurance in Ontario for 2018.

The Average Cost Of Home Insurance In Ontario

The average cost of home insurance in Ontario is $1,036.

This is arrived at by taking a 20% on the 2016 average cost to cover a 10% increase each year. This is very basic, but it does give an idea of what home insurance could run at for a home worth between $100K to $300K. This would average out to about $86. Per month.

Drastic Differences in Ontario Home Insurance 2018

While the average estimate of home insurance seems most affordable, it has to be kept in mind that this is based on a home valued between the $100,000 to $300,000k. Those that have homes valued much higher than this are going to pay more for their insurance premiums. Also, it has to be taken into account that insurance companies can differ dramatically when it comes to home insurance. The rules and regulations for home insurance in Ontario is not near as rigid for this type of insurance as it is for car insurance.

An example is one individual who was paying about $75. For insurance in 2018 for a small bungalow. The insured obtained another quote and was shocked to discover the quote was for $245. a month and no mistake had been made.

In fact, two neighbors side by side with very similar homes could be paying different premiums. There are several reasons for this.

What Dictates the Setting of Home Insurance Premiums?

There are many different factors that are going to be taken into account when setting the premiums for home insurance for an insurance applicant such as;

  • The cost to replace the home
  • Where the home is located
  • The age of the home
  • The electrical system
  • Plumbing
  • Roof condition
  • Upgrades
  • Claims history
  • How close the home is to fire hydrants and the fire stations
  • Pets in the relationship to creating personal injury
  • The type and value of personal property
  • Swimming Pool
  • Type of heating
  • Oil Heating
  • Home Office
  • Type of Insulation
  • Basement status
  • Landscaping
  • Additional building
  • Insurance administrative costs

All of these are going to be factored in so with the neighbor scenario and the possibility of there being major differences in what each pays for insurance there could be variances in this list that are going to come into the comparisons.

Ontario Home Insurance Costs In The Past

Just as home insurance in Ontario varies now and depends on a lot of metrics, the same can be said about the past.

  • In 2015 some experts claim the average home insurance was around $780. Per year for homeowners.
  • In 2017 Insurance Companies in the Private P&C sector underwrote $11. Billion in net written premiums. This was in respect to personal property insurance.
  • Going back in time like thirty years ago home insurance claims made as a result of bad weather only amounted to $400. Million, now they are averaging $1. Billion a year.

Taking Control of the Average Insurance Cost in Ontario

Insurance shoppers cannot change the metrics that insurance companies use for setting their premiums. But, they can make some choices that could reduce their costs.

Look at What Can Be Eliminated to Create a Reduction in the Average Cost of Home Insurance 2018

There are times where making the right decisions can dramatically reduce the cost of insurance. For example, when having a home built or doing upgrades, the focus can be put on what can be eliminated that is known to increase the costs of home insurance such as;

  • Swimming pools
  • Oil heating
  • Fireplaces

Looking at What Can be Added to Create a Reduction in the Average Cost of Ontario Home Insurance 2018

There are some additions that can be made to the home to help reduce insurance costs. For example,

  • Deadbolt locks on the doors
  • Alarm system
  • Sprinkler systems
  • Increasing your deductibles

Be a Savvy Insurance Shopper

Over and above the additions and omissions there are other steps that can be taken to help ensure that you are getting the most for your insurance dollars. Some examples are;

  • Check out the financial stability of the Insurance Company you are going to be using
  • Take the time to determine what your needs are
  • Review what the possibilities are that may lead to a claim and see if you can reduce the risk, if not make sure you  buy enough insurance coverage to cover the risk
  • Create an inventory list of all your items and their value
  • Review your policy each year and compare to the coverage to the values of replacement
  • Take the time to get insurance quotes, but don’t just make the decision based on price. Compare what the policies have to offer for what they are charging

Having an understanding of what the average cost of insurance in Ontario used to be and what it is now for 2018 provides a starting point for home insurance shopping in Ontario.

Resources

http://assets.ibc.ca/Documents/Facts%20Book/Facts_Book/2018/IBC-Fact-Book-2018.pdf
https://mitchellwhale.com/10-factors-cost-home-insurance/
http://www.urbaneer.com/homewatch/14_property_features_that_increase_your_insurance_premiums
https://www.dyckinsurance.ca/wp-content/uploads/2018/05/home_insurance_explained.pdf