3 Cities with the highest home insurance rates in Canada
It's no secret that the cost of living in Canada varies by city. This includes the cost of housing, goods and everyday items. Did you know that the variation in cost of living across our great country also includes the cost of your home insurance rates?
Whether you rent or own your home, you'll need to buy home insurance (if you’re renting it will be tenant insurance). It helps protect you in case of loss, theft, or damage to the structure of your home, and all of your personal belongings inside.
Home insurance rates in Canada vary by city, and they also vary by consumer. Insurance rates are calculated based on a number of variables such as your claim history, deductible, the size of your home as well as the construction date and heating method used. This means that your rates can vary between companies and it also means that someone living in Vancouver can have different premium rates than someone with the exact same variables who lives in Toronto. Do you know how your hometown ranks?
When you're shopping around for home insurance make sure to compare apples to apples to ensure you're getting the lowest rates.
Here’s how to make the best of the situation when you live in one of the three cities with the highest home insurance rates in Canada:
Vancouver, British Columbia
Home insurance rates are partially based on the risk of residents making claims as well as the potential cost to replace or rebuild if there is damage. Residents of Vancouver pay high home insurance premiums because they are at a higher risk of an earthquake than other cities.
If you feel the insurance premiums are too high in your area, you can do several things to help lower the costs. Add an alarm system to your home or offer to pay annually instead of make monthly payments.
Toronto, Ontario
The cost of owning a home and living in Toronto is among the highest in the country. When you live in a big city and buy an expensive home you have to pay a hefty price for the insurance.
Residents of cities that have high home insurance rates can lower their costs by raising the deductible, bundling multiple insurance products with one provider, and authorizing the insurance provider to perform a credit check. People with higher credit scores often receive lower home insurance rates in Canada.
Montreal, Quebec
Although Montreal has the lowest home insurance premiums of the most expensive cities on our list, it's important to know that it also has the highest discrepancy between the cost of renter's insurance and owner's insurance. The average annual home insurance in Montreal for homeowners is $852 compared to renters who pay an average of $408 according to Insureye.
Home insurance costs should be factored into your overall cost of living when deciding where to live because it
is an annual cost that must fit into your overall budget.