A home is probably the biggest investment one makes in their lifetime. Like other assets, it is also prone to damages or loss. When such an event occurs, it can be both emotionally and financially devastating for the owner. So, to protect the homeowner’s interest, getting some kind of home insurance makes sense. A comprehensive home insurance coverage can cover your property, possessions, and liability claims.
Have you ever asked yourself, “how much home insurance do I need in Canada?”. The answer depends on several variables like your personal financial history and type of house property. To make things simple, we have illustrated how to calculate the average amount of house insurance with Surex, a leading insurance brokerage in Canada.
Continue reading to learn the answer to the question, “how much home insurance do I need in Canada?” and how to calculate the cost.
Calculating the average amount of house insurance with Surex
While there is no practical home insurance calculator in Canada, you can complete a quote with Surex to explore your options. It is the most effective and quickest way to get home insurance quotes from more than ten reputed insurance providers in Canada.
Surex no obligation home insurance quotes tool lets you compare quotes without any cost in less than 5 minutes. All quotes are competitive, accurate, and personalized as per your needs. Here are simple steps to get quotes and compare.
- Share your personal details
- Share some details about your property
- Get quotes from multiple insurance companies
- Compare and select the best
- Consult an insurance agent, if required
- Buy and save
Benefits of calculating home insurance
Whether your policy is due for renewal or you want to buy a new policy, comparing quotes is the key to getting the best rate and coverage. Here are some advantages of calculating home insurance before inking any deal.
- Save your time: As per your provided information, you get personalized quotes from multiple companies. You can easily review these quotes and save your time.
- Assess your options: The cost and coverage of every quote are different. Once you get the estimate and extent of coverage, you can easily assess the situation on the ground. It helps in better decision-making and buying coverage as per your needs and budget.
- Compare quotes: Next, you can easily shortlist the quotes as per your needs and compare them accordingly. Even a layman can identify the best coverage from multiple options.
- It’s free
How much does home insurance cost in Canada?
On average, Canadians pay $960 annually for home insurance coverage. However, this number can vary significantly from one province to another. For instance, if you live in Ontario, you may have to pay an average of $1,250 a year. On the other hand, home insurance costs in British Columbia are as low as $924 per year.
Here’s the average cost of home insurance in some major Canadian provinces:
| Province | Average cost annually | Average cost per month |
| Alberta | $1,000 | $83 |
| Ontario | $1,250 | $104 |
| New Brunswick | $781 | $65 |
| Manitoba | $1,032 | $86 |
| Quebec | $984 | $82 |
| Newfoundland and Labrador | $780 | $65 |
| Nova Scotia | $782 | $65 |
| British Columbia | $924 | $77 |
| Prince Edward Island | $781 | $65 |
Factors that influence your home insurance costs
As mentioned, many variables influence home insurance rates. Some of the noted ones are:
Replacement cost of your home
The replacement cost plays a vital role in determining home insurance premiums. It is the money required to repair or replace the house exactly to the pre-damaged condition. So, the higher the home’s replacement cost, the more you have to pay on premiums. Replacement cost depends on:
- Area of your home
- The age of the house
- Number of floors
- Building material
Location of your house
The area where you live impacts the costs of your premiums. You may have to pay higher premiums if:
- You live in a high-crime or any type of natural disaster-prone neighborhood.
- Your house is located far from the fire station or fire hydrants.
- Your home is near airports or large bodies of water
Credit score
Most insurance companies in Canada use the credit score to determine customers’ home insurance premiums. Insures link bad credit scores to a high risk of claims. While there is no significant relationship between your bad credit score and the high insurance costs, a high credit score can get you attractive discounts.
Amount of your deductible
The amount of deductible you choose also affects your premiums. A deductible is a specific amount you pay to repair or replace your home in the event of damages or loss to your property. The rest is paid by your insurer. So, the higher your deductible, the less you pay for premiums. However, it increases your risk in the event of any damage.
Age and construction of your home
Old buildings pose a greater risk compared to new ones. So, you may have to pay a higher premium for:
- An old property
- Old wiring and plumbings
- Traditional heating systems
- Non-maintained structure or bad roof
How to lower home insurance annual premiums?
While you can not control many factors that influence home insurance rates, there are a few tips to lower them. Here are some of them:
- Installing advanced home security systems like cameras and alarms.
- Bundle your home and car insurance policy to get an attractive discount.
- Pay your policy upfront instead of monthly.
- Choose coverage as per your need.
- Compare quotes
- Don’t claim for minor damages.
- Improve your credit history.
These tips really work for lowering your home insurance premiums. Also, do not forget to ask your insurance agent if you qualify for other discounts.
How much home insurance do I need in Canada? — Endnote
Although every homeowner wants to buy a home coverage at the lowest price, it is not always the best option. For instance, buying basic coverage may expose you to uncertainties if you live in a flood-prone area or own a new house. In case of damage, you have to suffer a substantial financial loss.
So, instead of searching for cheap home insurance, find affordable home insurance with the best coverage. Here comes the importance of comparing quotes in assessing viable options. Moreover, an insurance brokerage like Surex can help you get no-obligation insurance quotes from multiple insurers in Canada. So, do not settle for less. Shop around to get the best home insurance in Canada.
