7 Strategies to Keep Your Home Insurance Rates Competitive.

Home insurance costs in Ontario are rising at an alarming rate, adding financial strain on homeowners. In 2025, the average home insurance premium in Ontario increased by approximately 7.15% compared to 2024, a rise well above the general inflation rate of 2.3% for 2025 and higher than the national average increase of 5.3%.

This trend continues a multi-year pattern of escalating home insurance rates. In fact, Ontario premiums have surged by 84% between 2014 and 2024, greatly outpacing the 28% growth in general consumer prices during the same decade.

What is driving this increase? Two specific types of claims are believed to be the primary contributors: (1) system backups caused by overwhelmed sewers, sump pumps, or septic systems, and (2) damage from wind and hail. Additionally, insurers are facing higher costs when rebuilding homes after a loss. According to Verisk’s analysis of construction costs, residential rebuilding costs in Ontario increased by 23.8% between 2021 and 2026, with ongoing labor shortages in the skilled trades adding even more pressure.

According to the Insurance Bureau of Canada (IBC), insured losses from severe weather nearly tripled to $37 billion between 2016 and 2025, up from $14 billion in the previous decade. In 2025 alone, severe weather resulted in over $2.4 billion in insured losses across Canada.

Interestingly, crime does not seem to play a significant role in these price differences. More than half of Ontario’s postal codes are considered high-risk for theft; however, seven of the province’s ten least expensive communities share this same rating. This indicates that insurers place much greater emphasis on weather-related risks like water damage and wind than on theft.

What Can You Do to Help Yourself?  

While rising construction costs and increasingly severe weather are beyond your control, there are steps you can take to lower your risk and ensure you’re paying a competitive price.

7 Strategies to Keep Your Home Insurance Rates Low: 

1.   Shop Around and Compare Quotes: Different insurers offer varying rates for similar coverage. Comparing quotes can help you find the best deal.
2.   Bundle Your Policies: Combining your home and auto insurance with the same provider can result in significant savings.
3.   Increase Your Deductible: Raising your deductible can lower your monthly premium.
4.   Improve Home Security: Installing monitored security systems or fire alarms can reduce your risk and qualify you for discounts.
5.   Maintain a Good Credit Score: A good credit score can help insurers offer lower premiums.
6.   Ask about Discounts: Inquire whether installing a backwater valve or a sump pump with a battery backup qualifies you for a discount.
7.   Check for Local Subsidies: If you live in the GTA, check whether you are eligible for the city’s basement flooding protection subsidy, which offers up to $6,650 toward qualifying upgrades.

Additionally, review your policy to ensure that overland flood and system backup coverage are included, as these are often optional add-ons. If your roof is nearing the end of its life, consider upgrading to impact-resistant roofing materials, which can reduce your exposure to one of Ontario’s costliest insurance risks: hail damage.

The reality is that many significant drivers of home insurance costs—such as aging infrastructure, rising rebuild costs, and increasingly severe weather—are outside your control. However, understanding the factors behind your premium puts you in a much better position to make informed decisions. 

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