Home Insurance Rates

How do Canadian Home Insurance Companies determine your premium?

Home Insurance Rates are based on the odds of you submitting a claim (the risk). The lower the risk, the lower your house insurance rate.

When you get a quote for home owners insurance you will be asked many questions about the home. The key questions follow:

Style of construction . The style of construction and the size of the house (square feet) will make a difference in what it will cost to repair or rebuild in the event of a claim.

The insurer will want to know: Is the house detached, a semi or a row house? Is it one or two stories? A bi-level or tri-level? Is it brick or frame construction?

Age of home In general, the older the home, the higher the premium. Older homes are more likely to have problems that could result in a claim.

Updates Wiring, plumbing, heating and the roof all need to be updated in the past 15-20 years in order to get the best rates. The longer it has been since any of these items have been updated the harder it will be to get good rates as the risk of claim is higher.

Liability sources If you run a business from home you will have to add extra liability coverage. The same applies if you have a pool or have tenants renting a room in your home.

Location Where exactly you live makes a difference. If your area has a history of break and enters or sewer backups you will certainly pay a higher premium.

Distance to fire hall If you are close to a fire hydrant and fire hall your rates will not be affected. But if you are in an area deemed semi protected (no hydrant within 300 meters) or unprotected (no fire hall or hydrant nearby) you will have to pay higher premiums.

Type of Coverage Like many other things in life, the better your coverage, the higher your premium (although there are exceptions). Learn more about the types of coverage here

Security features Having a monitored alarm system for fire and break and enter will save 10-15%

Deductible The higher the deductible, the lower the premium.

Discounts on home insurance rates can include (vary by company) 
claims free 
non smoker 
senior 
multiple policy (combine auto insurance with home insurance) 
alarm system 
loyalty

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Note: Always speak with a licensed insurance professional about your specific situation. This insurance information is general in nature and the policy wordings always take precedence. It is possible that there are errors and omissions in this website and www.canada-insurance-source.com, or its authors, take no responsibility.

Keep in mind that insurance licensing, legislation, and policies often vary by province and most certainly by country. Canada Insurance Source is a free information source. So use this site to gain a general understanding of insurance with your own area and situation in mind.  Make sure you review the "please read" page. Always speak with a licensed insurance professional about your specific situation.

Always speak with a licensed insurance representative about your specific situation.

This site is general in nature and there may be errors or ommissions

Please Read

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