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Average Home Insurance Costs in Ontario: Factors Affecting Home Insurance Costs

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Home insurance is an essential aspect of protecting your property and ensuring your financial security. If you own a home in Ontario, understanding the average costs of home insurance is crucial for budgeting and making informed decisions about coverage.

What is the average cost of home insurance in Ontario?

The average cost of home insurance in Ontario is approximately $1,200 per year. According to the JD Power & Associates 2018 Canada Home Insurance Study, the median annual Ontario homeowners insurance rate in 2018 was $1,284, equivalent to approximately $107 per month. This places Ontario’s average home insurance costs on par with the western provinces, which had an average of $1,200 per year. Quebec had the lowest average at $960 per year.

However, it’s crucial to consider that these are median values and may not accurately represent the specific circumstances of your home. To obtain a more accurate estimate for your home insurance, it’s best to consult with insurance brokers who can provide personalized quotes based on your individual needs and risk profile.

Factors Affecting Home Insurance Costs

Several factors influence the cost of home insurance in Ontario. Understanding these factors will help you assess your insurance needs and make informed decisions when choosing coverage. Here are the key elements that insurers consider when determining your home insurance premium:


Rebuild Costs

The cost of rebuilding your home is a crucial factor in determining your insurance premium. Insurers assess the replacement value of your home, which includes the materials, labor, and associated expenses required to rebuild it in the event of a total loss. Factors such as the square footage, construction materials, and special features of your home can impact the rebuild cost and, in turn, your insurance premium.



The location of your home plays a significant role in determining your insurance rates. Insurers consider the proximity to fire hydrants and fire stations, crime rates in the area, and the susceptibility to natural disasters such as floods or earthquakes. Homes in areas with higher risks may have higher insurance premiums to account for the increased likelihood of claims.


Claims History

Your claims history is another important factor that insurers take into account when calculating your premium. If you have a history of filing numerous claims, it may indicate a higher risk of future claims, resulting in higher insurance costs. On the other hand, a claims-free history can lead to lower premiums or potential discounts.



The deductible is the amount you agree to pay out of pocket before your insurance coverage kicks in. Choosing a higher deductible can lower your premium, as you are assuming more of the financial risk in the event of a claim. It's essential to find the right balance between a deductible that is manageable for you and a premium that fits your budget.


Home Security Measures

The security features of your home can also impact your insurance premium. Installing a monitored security system can reduce the risk of damage or theft and may qualify you for discounts on your premium. Additionally, features such as deadbolt locks and security cameras can act as deterrents, minimizing the likelihood of break-ins.


Age and Condition of the Home

The age and condition of your home are factors that insurers consider when determining your premium. Older homes may have outdated electrical systems, plumbing, or roofing, which can increase the risk of damage and potential claims. Upgrading these aspects and maintaining the overall condition of your home can help reduce insurance costs.


Credit Score

In Ontario, insurance companies may consider your credit score when calculating your premium. A good credit score demonstrates financial responsibility and may result in lower insurance rates. On the other hand, a poor credit score can lead to higher premiums or difficulty obtaining coverage.


Liability Coverage

Liability coverage, which protects you if someone is injured on your property, is an essential component of home insurance. The amount of liability coverage you choose can impact your premium. Higher coverage limits may result in higher premiums, but they provide increased protection and peace of mind.


Home insurance costs in Ontario are influenced by various factors, including rebuild costs, location, claims history, deductible, home security, and more. Understanding these factors and their impact on insurance premiums is essential for homeowners to make informed decisions about coverage and to budget effectively.

When it comes to home insurance in Ontario, relying on the expertise of insurance brokers, such as McLean & Dickey Insurance, can provide invaluable support. Insurance brokers navigate the complexities of the insurance market, offer personalized advice, and ensure that homeowners find the most suitable coverage at the best possible rates.

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