The average cost of home insurance in Toronto

Homeownership comes with a range of responsibilities, and one of the most important tasks is protecting your property with the right coverage. As a homeowner in Toronto, you may be wondering about the cost of insurance – so let's explore the average rate city-wide and break it all down.

How much is home insurance in Toronto?

According to Ratehub.ca users who requested and compared Toronto home insurance quotes online, the average rate across the city for 2024 is currently $2,410. The average for the same period (January through June) within the previous year was $1,924 – meaning our Toronto users actually saw a stark increase of 25.3% in premium cost. 

Across the province, we found the average cost of home insurance in Ontario to be $1,913, so Toronto homeowners pay about 26% more. Keep in mind that these numbers only account for homeowners insurance rates – this does not factor in the cost of condo insurance or tenant insurance.

The average cost of home insurance in Toronto, compared

We dove into our user data to provide you with a comparison of Toronto home insurance rates, along with 19 other popular cities in Ontario for 2024. Here is a breakdown of all the numbers – as well as the change in pricing compared to the previous year (January through June).

Out of these 20 Ontario cities, residents in Toronto saw one of the highest average home insurance rates – which comes as no surprise. Those living in Kingston ($2,580) and Vaughan ($2,586), however, topped the city at a comparative increase of 7.1% and 7.3%, respectively. Home insurance was found to be the cheapest in Milton. At an average rate of $1,243, this presented the biggest difference with Toronto’s average – a whole 48.4% less. 

Is home insurance mandatory in Toronto?

Home insurance in Toronto (as well as the rest of Canada) is not mandatory by law – it’s up to you to decide whether you want to protect yourself from all the financial risks of owning a property. The one caveat is that if you have a mortgage, most lenders (if not all) will require you to have a home insurance policy to protect their investment. 

If you don’t have a mortgage, it’s still highly recommended that you purchase home insurance as the cost to repair or replace a home is not a cheap expense. Buying a home is one of the biggest investments you’ll make, and the last thing you want is for your financial security to be jeopardized by an unexpected event, such as a fire, flood, or break-in. 

Factors that impact your home insurance in Toronto

Generally speaking, the more risk associated with your property, the more expensive your premium will be in Ontario – here are a few factors that home insurance companies consider when calculating your quote:

Location – When it comes to home insurance, your home address matters. Areas in Toronto that are prone to natural disasters (e.g. flood, fire, storms) lead to higher rates. Plus, areas with high crime statistics can also impact your rate negatively.

Home replacement value – Your home’s replacement value isn’t the same number as its market value. Instead, this is how much it’ll cost to replace the property in its entirety if need be. For obvious reasons, the higher the replacement value, the more expensive your coverage becomes. The best policies in Toronto include guaranteed replacement cost protection; this helps ensure your home is covered even after inflation (or other factors) increase the cost to repair your home.

Property characteristics – Your home’s age, construction materials, and roofing condition all have an impact on the price of your insurance. Older homes with older materials lead to more risk – and in turn, higher premiums. Having an increase in square footage also means you’ll need to pay more to protect it all.

Property usage – Vacation properties cost more to insure than primary homes due to the added risk of vacancy. And if you’re looking for landlord insurance or short-term rental property insurance (e.g. for Airbnb), you may also need to get a specialized policy for a higher price – plus, consider asking your tenant to get Ontario renters insurance. Running business operations within your home can also increase your premium if you opt for a home-based business insurance endorsement.

Security & safety features – Insurers value proactive homeowners who bring less risk, so having safety measures in place can help lower your premium. This includes fire alarms, burglar alarms, and water leak detectors. Upgrading your electrical and plumbing systems is also a sign of safe home ownership, contributing to cheaper rates.

Coverage types & amounts – Having more coverages on your Toronto home insurance policy (e.g. flood insurance endorsements) undoubtedly leads to higher rates, as the added protection doesn't come without an added cost. This is also the case for increasing your coverage limits, such as for third-party liability and contents insurance.  

How to get cheaper home insurance in Toronto

While insurance companies are the ones that calculate your rate, there are still a few steps you can take to help lower your cost of coverage in Toronto. This includes the following:

Bundle insurance products – Insurance companies value customer loyalty, so if you get your auto and home insurance (or any other combination of P&C insurance products, such as condo insurance, boat insurance, or motorcycle insurance) from one provider, you can earn a substantial discount.

Allow for a credit check – Soft credit checks don’t impact your score negatively. Opting in for one (and having good credit, of course) can help show insurers you’re financially responsible which helps lower your home insurance rate.

Compare home insurance quotes – Above all, comparing Toronto home insurance quotes is one of the best ways to save. Insurers all quote differently (and they’re constantly adjusting their rating factors), so you won’t know which one offers the lowest price until you shop the market. With Ratehub.ca, we make it easy to do so – you can find your best option in less than five minutes.

The bottom line

Users who compared Toronto home insurance quotes on Ratehub.ca saw an average rate of $2,410 (a big increase of 25.3% when compared to 2023). While these quotes are just an average price, you could be entitled to a cheaper rate. Insurers quote each homeowner differently based on individualized risk factors, so in order to uncover your cheapest premium, you need to shop the market. As always, we recommend starting your online journey by comparing quotes with us!

Also read

• • The average cost of home insurance in Ontario
  • How does inflation affect my insurance premiums?
  • All about home insurance and wildfire season