How Much Does House Insurance Cost in Canada?

Posted on April 4, 2018

On average, house insurance cost in Canada is about 30% cheaper than in the United States. House insurance in the United States costs about $1200 on average. Meanwhile, the average cost of Canadian house insurance is roughly $850.

These are just the averages, and the cost in any given area can vary. The cheapest house insurance cost in the US can be found in Hawaii, where it totals at about $300 on average, whereas in Canada, the cost of house insurance never drops lower than $700 annually, nor does it reach $1000 in any province.

Cost, like anything in real estate, depends on location but can change depending on what happens over time.

Read on to learn about the factors that influence insurance costs so that you can navigate the housing market like a pro.

How Things Stand with House Insurance Cost

The principles of supply and demand are always at work in the real estate market. If there are only so many good schools in a certain area, the houses closest to them will go up in cost and value, and the same works for entertainment and other aspects of life.

A higher-income neighbourhood doesn't necessarily mean increased house insurance cost, nor will say cost necessarily increase if the home becomes more valuable.

Insurance costs also vary depending on risk and risk factors. These factors include things like weather patterns and crime rates.

The insurance rates for the fictional Arkham Asylum, for instance, would be nightmarish.

The good news is that with each factor in the housing and insurance market comes new ways to manipulate it.

Ways to Play the Market

The housing and insurance market was built on capitalism, so it stands to reason that capitalism is also the best way to navigate it.

Checking out different insurance companies, or even compare insurance packages is a great place to start, but know that packages differ in terms of what they cover. Bundling various types of insurance is also a great way to save money.

The consumer has a lot of power in their own right because a lot of the factors that influence house insurance costs have more to do with the purchaser than the house or company.

Having a good credit score can help to lower insurance costs, and so can being a non-smoker.

Some of these factors are beyond anyone's control, like whether or not you're retired, but it's definitely a good idea to look around take advantage of anything you qualify for.

Maintenance and Staying Up to Date

Ever opened a monthly bill only to find that something costs more despite nothing in your life-changing? The same can happen with the cost of insurance.

While things you do on your end, such as adding a room to the house, can definitely affect your rate, so can things are done by city officials or various other groups.

A housing project being built in your area will likely increase insurance costs.

This is why it's a good idea to stay up to date with your insurance company. Much like a relative, it's best to call them up every once in a while, check how things are going and if there's anything that has changed since you last called.

Unlike a relative, once a year is probably good enough for your insurance company.

I would also encourage you to watch for things that aren't commonly covered by insurance, like mold or infestations.

It may seem like these are easy things to avoid, but it's a little more complicated than that.

We all know how difficult it is to keep ants out of your house during the summer, but other creatures can get in when you're not looking. I once lived in an apartment that a small group of mice managed to get into, and we still don't know-how.

Another common issue during the summer, at least where I'm from, is wasps. They show up every year and often make multiple nests around one house. I once had one in my mailbox.

To a certain extent, this is inevitable. Animals migrate and that's not really something anyone can stop.

However, I have heard that wasps tend to return to their nests after migration, provided they are still there, so one tactic is to take down the nests during the colder seasons.

Mold can be a bit difficult, too. The first thing to do is know the types of places mold grows, which is anywhere dark and wet.

This plays an especially interesting role in Canada. Since it lies in the far north, with some places even being part of the arctic, winter might bring more trouble than it would in other areas.

However, the problem goes deeper if you have a house that leaks or isn't totally insulated. Now, not only do you potentially have mold, but now you have another problem that will definitely increase your insurance costs.

Things to remember

The best advice for any homeowner is to know what you're buying, not just the obvious features, but also try to figure out any of the issues and risks the building presents.

House insurance in Canada is much cheaper on average than in the US. However, on a case-by-case basis, the price tends to vary. This is because any number of factors can affect potential risk, from the location of the home to the health and reputation of the client.

However, the insurance market is unique in that many of these factors are under the direct control of the client. Who you are and how you live can have an effect on insurance costs.

Once you have a house, the best way to maintain insurance costs is to just pay attention. Take note of your home, what issues does it have or might it develop? Are there any construction projects being discussed in local government? What kind of animals live there? Where do they nest and how do they behave? Could they become a problem in the future?

Interested in learning more on this topic? Contact us with all and any of your questions!

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