Comprehensive Home Insurance - Ontario

Shielding your Home from the Unexpected
Homeowners in Ontario are considered lucky to live in such a beautiful city. Nevertheless, they face many risks that threaten their peace and financial stability. Natural disasters,severe weather conditions, and property crime are a few risks to shield from. While you can’t stop the rain from falling, you can still have financial protection with home insurance coverage.
Introducing Acumen Insurance, an insurance brokerage that provides insurance solutions, like property insurance, auto insurance, and more. We help you find custom solutions for your home unique to your circumstances. Stick around and learn more about home insurance and what we can offer.
Why Acumen Insurance for Home Insurance in Ontario?
- Over the past 40 years, we have built a reputation founded on your trust by providing personal consultations, competitive rates, and custom quotes.
- Our distribution network gives you access to a wide selection of some of the best insurance providers in the country.
- When it comes to making a home insurance claim, our brokers are on your side. Get the education and assurance you need to move forward in your claims process.
What are the Types of Home Insurance Policies?
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Basic Coverage:
Also known as named perils, basic coverage protects your building structure and the contents of your home from the risks you name only. For example, if you only list flood damage but not sewer backup, you will not get protection in case of the latter. Basic coverage is a great option if you’re on a tight budget, but it can be very limited.
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No-Frills:
No-frills is a limited coverage, often only protecting your home from fire. It’s not recommended for most homeowners as it has a different purpose. If the house is too damaged to be insurable, the owners may carry this coverage until they fix the home and insure it properly.
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Broad Form Coverage:
If you want to pay less than comprehensive coverage but get more coverage than the basic package, you can opt for the broad form coverage. It gives your building structure full coverage, like the comprehensive package. However, it only protects your belongings against the perils you name.
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Comprehensive Coverage:
Comprehensive coverage is usually all the protection you need for your home. It includes protection from all perils except for the few ones listed on the policy. It’s the most expensive coverage for a good reason, as it’s sufficient on its own, in most cases. If you need additional protection, you can also get add-ons.
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Is Home Insurance Mandatory in Ontario?
Unlike car insurance, home insurance isn’t mandatory in Ontario. No laws dictate carrying home insurance. However, it’s wise to protect your home against the many perils in Ontario. Instead of paying to fix an expensive damage all of a sudden, your insurance- which you pay in installments- covers the costs. Moreover, many mortgage lenders require homeowners to carry home insurance as part of the lease agreement. So, in most cases, you have to own a mortgage-free house to skip home insurance.
Get a QuoteWhat Are Home Insurance Coverage Options in Ontario?
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Property and Building:
This coverage protects the structures on your property and the property itself. It usually protects from various risks, like fire, theft water damage, and others. Some policies may include secondary structures, like a fence, shed, or garage.
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Contents and Personal Property:
Coverage is made for your personal belongings, and contents coverage protects your clothes, furniture, appliances, and equipment from theft and vandalism. The coverage has a limit, though. If you possess expensive items, like jewelry or collectibles, you may need additional coverage to protect them.
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Liability Coverage:
Liability coverage has three types: personal liability, voluntary medical payments, and voluntary property damage. Personal liability protects you against liability claims if someone is injured on your property. Voluntary medical payments pay for the medical expenses for up to one year. As for voluntary property damage, it covers unintentional damage you cause to someone else’s property.
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Additional Living Expenses:
Additional living expenses are available for you in the worst-case scenario. If your house is too damaged that you can’t stay there for some time, this coverage pays for living expenses, like food, transportation, and accommodation up to a limit.
What Are Home Insurance Add-ons?
- Sewer backup: Protects your home when the sewer backs up and causes damage to your house or any losses.
- Earthquake coverage: Offers protection in case of earthquake damage. If your area is prone to earthquakes, this coverage is very useful.
- Overland water: Protects your property from damage or losses resulting from overflowing water from rivers, streams, lakes and thawing snow.
- Mass evacuation: If a flood or earthquake is too strong across the city, the government may issue a mass evacuation. If you have coverage for the disaster that triggered the evacuation, the insurance company will cover the living expenses up to a limit.
- Identity theft: Covers the replacement fees for reissuing your government documents, like your passport.
- Lock replacement: This add-on covers the fees for replacing your door lock.
- Personal valuables: If you own valuable items that your insurance doesn’t cover completely, this insurance coverage extends the coverage limits.
- Home Sharing: Provides additional property and liability coverage to protect you if you rent your property.
- Personal Umbrella: Bridges the gap between the coverage limits and the compensation amount you need in case of a claim. It’s helpful if you think your insurance coverage isn’t enough.
What Is Not Included in a House Insurance Policy?
- Absence from Home: If the damage happens while you’ve been away for a long time, it’s not covered.
- Renters damage: Most insurance providers don’t cover your home if it’s rented. For that, you need specialized landlord insurance coverage.
- By-law enforcement: Damage that happened from the application or enforcement of a by-law isn’t covered in most cases.
- Intentional Damage: It’s illegal to file a claim for damage you inflict on a person or a property on purpose. It’s considered insurance fraud, which is illegal.
- Existing damage: Home insurance doesn’t cover damage that existed before you held the insurance policy.
- Mould: Mould happens over time and can be prevented or controlled before it causes damage, so it’s not covered in a home insurance policy.
- Pest Infestations: Similar to mould, pest infestations take time to become a threat.
What Are the Other Types of Home Insurance?
Aside from homeowner’s insurance, these are the other types of property insurance we can help you purchase.
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Tenant Insurance:
For those renting a house or apartment, tenant insurance protects you and your personal belongings minus the structure of the house. Many landlords add it as a requirement to lease their property.
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Condo Insurance:
Owning a condo is different from owning a full property. Condo insurance offers protection to the interior of your property and its belongings. So, it doesn’t protect the building structure.
How Much Does Home Insurance Cost in Ontario?
The average cost of home insurance in Ontario is $1,481.21 per year and $123.43 per month. This estimated cost varies greatly between homeowners. Each homeowner pays a different amount of insurance depending on the factors below.
Get a QuoteFactors that Affect Home Insurance Premiums in Ontario
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Location:
Home insurance costs differ depending on your city and area. For example, the insurance premium of a highly-populated area like Toronto costs $1,521.64 per year. On the other hand, less populated cities, like Barrie and Oshawa, have an insurance premium of $101.8 per month. Population density isn’t the only factor here. Insurance costs may also increase based on claims history, crime stats, and weather conditions.
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Home Age:
The age of your home isn’t just a number; it says a lot about its state. Old homes have outdated electrical, plumbing, and heating systems, which can be considered hazardous if not upgraded. Moreover, old homes are usually weak and prone to destruction. So, an old home might get higher insurance premiums.
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Home Insurance Deductible:
The deductible is the amount you pay for a covered claim while the insurance company covers the rest of the costs. The rule goes that the higher the deductible, the lower the insurance premium is.
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Home Value:
Your home’s value is also a strong factor when the insurance company is calculating your home insurance premiums. If you live in a house that is expensive to rebuild or fix, you get a higher premium and vice versa. On the other hand, if the house is constructed with strong materials that aren’t easily damageable, you can get lower premiums. Features, like a swimming pool or wood-burning stove, may also increase the premium amount because they increase the risk of damage and injuries. Moreover, size is also considered, as larger homes are more expensive to insure.
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Credit Score:
Although insurance premiums are prohibited from looking into your credit score to determine auto insurance costs, they are allowed when setting the prices of home insurance. A high credit score, from good to excellent, indicates that you’re reliable and financially responsible, so you qualify for a discount. On the other hand, a poor credit score means you might be reckless, so it may raise the price of your home insurance.
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Risk Factors:
Generally, insurance companies measure risk factors when calculating your premium. For example, if you don’t have a security system or an old heating system, you’re more likely to face theft or fire damage. If your home is highly susceptible to any damage or loss, you get a higher premium cost.
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Claims History:
Insurance companies look into your insurance history before pricing your home insurance. The reason behind this is that having previous claims is a strong indicator that you will file future ones.
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Insurance Provider:
Each insurance provider uses a different formula when calculating home insurance premiums. Here are some estimated costs of home insurance from various home insurance companies.
- Aviva: $1,657.44annually.
- Intact Insurance:$1,352.76annually.
- SGI Canada: $1,481.68annually.
- Unica Insurance: $2,022.83 annually.
- Wawanesa Insurance: $1,125.07 annually.
How to Get Cheap Home Insurance Coverage?
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Compare Home Insurance Quotes:
As we established, home insurance quotes differ from one provider to another. That also applies to the amount of coverage you get for each price range. It helps to always review various deals before making a choice. An insurance broker can help get you good deals and advise you on the best option.
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Upgrade Home Security systems:
Your central monitor alarm system could get you a better deal. A good alarm system reduces the risk of your house getting robbed or damaged by intruders, so it may get you a discount. Many companies reduce prices if you’re serious about shielding your home from theft and vandalism.
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Bundle Home and Auto Insurance Policies:
Many home insurance companies offer auto insurance solutions. If you bundle your home and car insurance policies together from the same provider, you can get a discount. Moreover, some providers offer better coverage options for clients who bundle. Lastly, the claims process is easier when you bundle, specifically if damage occurs to both your house and car.
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Upgrade Electrical and Plumbing Systems:
Older homes may have outdated electrical and plumbing systems. An old electrical system may cause a short circuit and start a fire, while an old plumbing system may cause water overflow that damages your home. Upgrading these systems protects you and gets you a discount as well. After you’re done with the upgrades, reach out to the insurance company and tell them about the changes.
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Increase Deductible:
Increasing your deductible decreases your insurance premiums. However, we advise that you secure the deductible amount and save it before increasing the deductible. That way, you’re always ready to pay the amount out-of-pocket.
Inquire About Discounts:
Many insurance providers offer discounts; all you have to do is ask about your eligibility. You may be eligible for a discount if you:
- Are a non-smoker. Smoking increases fire risk.
- Bundle home and auto insurance.
- Have an advanced security system. You’re more immune to theft and vandalism.
- Have a modern plumbing, heating, and electrical system. You’re less likely to get water or fire damage.
- Are claims-free. Previous claims increase the probability of making future claims.
- Have been with the same insurer for years. It’s also known as a loyalty discount.
- You have a high credit score. It shows that you’re reliable and responsible.
- You pay your premiums annually instead of monthly. It saves on administrative fees.
What Are the Common Risks that Homeowners Face in Ontario?
- Severe Weather: Severe weather events are common in Ontario. These include derechos, ice storms, and windstorms. They can cause severe damage to the house’s roof and structure.
- Flooding: Two types of flooding are common in Ontario. The first is overland flooding, which affects homes that are close to rivers and lakes. The second type is urban flooding from an overwhelmed sewage system. Flood insurance isn’t part of the standard home insurance policy, so it’s wise to get an add-on.
- Wildfires: An increasingly significant risk in Ontario, wildfires are a serious concern for homeowners, especially those living in forested and rural areas.
- Power Outages: Power outages are relatively common in Ontario, because of severe weather events and other infrastructure issues. They are risky to homeowners because they may lead to short circuits.
- Earthquakes: Earthquakes are less common in Ontario, but they can still happen. Getting an earthquake insurance add-on protects you from expensive repair costs.
Ontario Home Insurance FAQs
- Mould
- Pest Infestation
- Earthquake (may be available as an add-on)
- Flood (may be available as an add-on)
- Damage from by-law enforcement
- Intentional Damage
Yes, insurance premiums have been on the rise in Ontario because of inflation and rising costs, increased claim rates, and climate-related disasters like floods and wildfires.
No, property insurance isn’t mandatory by law in the province of Ontario. However, some mortgage lenders require it from homeowners to protect their investments.
The estimated average cost of home insurance in Ontario is $1,481.21. For a more accurate number, speak with one of our brokers or fill out the form to get a home insurance quote.
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