Canadians pay $840 average annually for home insurance

BRITISH COLUMBIA LEADS THE LIST

Home insurance premiumsOften home insurance costs are lost within auto insurance numbers as part of a bundled price. Bundled or not, home insurance represents a considerable expense—but just how much?  To find out, Canadian company InsurEye completed research on home insurance premiums across Canada. The results show that, on average, Canadians pay $840 annually for their home insurance.  However, prices strongly varied across provinces.
The highest level of home insurance premiums is in British Columbia at $924 annually, followed by Alberta with $912 annually. Annual home premiums in Ontario go as high as $828, and in Quebec they reach $768 per year.

Owned vs. rented property

Home insurance comparison in CanadaHome insurance for rental properties is in general cheaper than for owned properties because of the limited coverage this type of insurance typically provides. In the case of a renter or condo owner, you are paying to insure your personal property.  For a home owner, insurance covers both your dwelling and personal property. Virtually all home insurance policies cover additional aspects such as liability.
InsurEye’s research shows that home insurance premiums for owned property are 1.4 times higher (Alberta) to 2.1 times higher (Quebec) than premiums for a rented dwelling. The highest level of premiums for a rented dwelling is in Alberta at $696 per year, followed by B.C. with $588. Ontario follows with $480 and Quebec with $408 per year to round out the list.
As for owned property, British Columbia is clearly the priciest province, where home owners need to put down here the highest amount in Canada: $984 per year, compared with $948 in Alberta, $900 in Ontario and $852 in Quebec.

Why is BC home insurance so expensive?

A glance at real estate statistics delivers the first answer why British Columbia home insurance prices are so high. According to MLS statistics, B.C. is clearly leading in the average real estate prices. This average for Vancouver and Victoria reaches ~$750k and ~$450k respectively, whereas Toronto and Ottawa bring in ~$463k and ~$350k as averages. Calgary’s real estate average is ~$380k, with Montreal at ~$311k and Quebec City rounding out at ~$250k. The more valuable the home, the more it typically costs to rebuild and to insure.
B.C.-based insurance provider Square One shares another insight as to why home insurance is so expensive in B.C. Due to the high earthquake risk, 40% to 60% of B.C. residents buy earthquake coverage, significantly more than the rest of Canada. (Only 5% to 10% of Quebec residents purchase this coverage even though it, too, is in an earthquake zone.) And, the cost of earthquake coverage in B.C. can account for as much as one-third of a policy’s premium.

InsurEye is a Canadian company that provides independent, innovative online services to help consumers better understand and manage their insurance. InsurEye Peer Comparison is a free, interactive tool that compares consumers’ insurance costs with their peers and shows how to save using others’ insurance experience.

Established in 2011 and based in Vancouver, British Columbia, Square One Insurance provides Canadians living in urban centres with modern, relevant home insurance. Square One is one of the few insurance providers in Canada specializing in home insurance and offering truly customized policies that can be purchased over the phone and online. For more information about Square One, visit www.squareoneinsurance.ca

 

Sources

InsueEye Inc
Square One Insurance

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@John,

Thank you very much for stopping by here. Since our research was based on consumer data, we had enough data only across four most populated provinces. Meanwhile we launched our tool for Auto insurance also for consumers in Nova Scotia and hope to add other provinces soon!

Alex @ InsurEye

Posted by alexey.saltykov on Sep 27, 2012

I didn’t realize that there are only four provinces in Canada.

Posted by John Austin (in Newfoundland) on Sep 27, 2012

I didn’t realize that there are only four provinces in Canada.

Posted by John Austin (in Newfoundland) on Sep 27, 2012

That’s really great report which is very informative for me. It’s good to see Canadians are very serious about their home insurance.

Posted by Used cars on May 14, 2012