The general perception is that Toronto is an expensive place to live and it is an expensive city to buy a home in. One of the cost factors that contribute to the expenses in home insurance. Savvy home buyers in Toronto want to know what the costs are going to be for home ownership here. Therefore, they want to know the cost of their home insurance. The problem is there is no set answer for how much a homeowner will pay for their 2019 Toronto home insurance. But, there are some factors that they can keep in mind that will help them determine what is going to contribute to the cost of their home insurance.

Average Home Insurance Cost In Toronto

Cost of home insurance in Toronto for 2019 averages $275 a month.

  • Some Toronto homeowners have seen a rise in their home insurance premiums over the last few years. Some of the contributing factors are;
  • Some of the experts are contributing this to the flood in Toronto in 2013 that cost the insurance companies $3.2 billion in claims. As a result, they had to increase the cost, and it was estimated that the increase was between 15 to 20%.
  • There was also a noted increase in deductibles as they pertain to claims that were weather-related. The increase in the deductibles for some went from $1,000 to $2,500.
  • Another change that has taken place is that some insurance companies have set a specific limit on how much they will now pay for weather-related claims.

All of these factors have brought the cost of insurance to where it is now in 2018.

Why is Home Insurance In Toronto More Expensive?

The Location

  • The location of Toronto alone plays a factor in the cost of the home insurance. It is a heavily populated area which means there are more risks being created for insurance companies when it comes to paying out claims.  Toronto is broken up into various neighbourhoods. Based on the statistics for a particular neighbourhood the insurance companies will factor this into the premiums.

The Cost of Replacement

Toronto also has many outstanding homes for sale that come in at a hefty price tag. Partly based on the metrics of the home and partly because of the neighbourhood they are located in.

The Bridal Path

  • Right now there is a home listed at $35,000,000. A good indicator of the calibre of homes that are nestled in the Bridal Path area. Naturally with a home with a high price tag like this the home insurance is not going to be cheap.

The Age of the Home

Toronto is well known for having some aged homes, but the oldest home was discovered by accident. When an electrician was hired to do some work on it. It was discovered to be a log home. Although not the oldest structure it is believed to be the oldest home that is being used for residential living.

The concerns that insurance companies have about older homes are;

  • The structure concerning being wood or brick
  • The wiring
  • The plumbing

These are all components that raise the risk factors for insurance companies. In some cases for the older homes in Toronto, the insurance company may insist on an update before providing insurance coverage. Others may deny coverage based on the age and condition of these components.

Toronto Housing Market Forecast

Insurance companies are also keen on what is taking place in the Toronto housing market when it comes to their insurance product.

The June housing report shows that housing sale and prices are still climbing for Toronto. YOY statistics from June to June indicate;

  • The number of new listings is down by 18%
  • The average sale price rose by 2%
  • The average home stayed on the market 21 days up from 6 days

What takes place in the housing market has an impact on the home insurance. The regions that are being populated in Toronto more heavily are going to provide more statistics for the insurance companies to rely on in the future when they are setting their premiums.

Has Your Insurance Increased for 2019?

As with most products, there is usually a yearly increase and home insurance for the Toronto area will be no different. How much is going to depend on several factors such as;

  • The normal increases in cost due to increased administration costs of your insurance company
  • Whether you have put forth any claims since your last insurance renewal
  • The increase in the cost of replacement of your home due to the rise in the cost of materials
  • Whether you have done any renovations or upgrades to your home that is going to increase the replacement cost
  • Whether changes in weather patterns cost more in payouts for insurance companies.

Some insurance companies may not have raised the cost of your premiums. But, what they may have done is reduced some of your coverage. You may have received notices with your renewal statement indicating that the insurance will no longer cover portions of what was originally covered in your policy.

Toronto Home Insurance in Previous Years

A lot of people complain about the cost of their home insurance now in 2018, but when you look back at what some were paying several years ago then in some cases, there is not all that much difference. Yet, in other cases, there is a big change.

  • There were some back in 2008 that were only paying just a little under $50. A month for a home valued at $400,000.
  • Another individual during the same period reiterated how they had to shop for home insurance back then.  By doing so, they were able to get a cheaper rate of $700. As opposed to $800. For a home that was approx.. 2100 sq.ft and 25 years old.
  • Going back to 2013 some in the real estate business estimate that the average cost for home insurance in Toronto ranges from around  $100 to $150 a month.
  • Only going back a year some of those involved in the real estate business are indicating that home insurance for condo owners was much cheaper compared to homeowners. For homeowners, they were estimating the monthly home insurance cost on average to be about $65.

It is most difficult for Toronto homeowners to use the metrics of someone else’s insurance costs because home insurance is an individualized product.

Resources

http://forums.redflagdeals.com/cheapest-home-insurance-toronto-787718/
https://www.getwhatyouwant.ca/what-does-it-really-cost-to-own-a-house-in-toronto
https://jamiesarner.com/toronto-real-estate/2017/08/condo-insurance-toronto/
https://gibbinsurance.ca/blog/post/factors-contributing-to-an-increase-in-house-insurance-premiums-.aspx
https://www.blogto.com/city/2017/09/most-expensive-homes-sale-toronto-2017/
https://globalnews.ca/news/3521468/how-an-electricians-visit-led-to-the-discovery-of-torontos-oldest-home/
https://gordcollins.com/real-estate/toronto-market-forecast/
https://budgeting.thenest.com/homeowners-insurance-increase-year-year-28098.html