Home insurance premiums are lower for rental properties than for owned properties. This is because rentals have limited coverage.
Insurance only covers personal property and liability for renters. However, coverage applies to the dwelling, personal property, and liability for homeowners.
Canada’s home insurance premiums have been steadily rising over the past few years. A surge in weather-related claims and rebuilding costs are among the reasons.
A recent analysis by financial comparison website RATESDOTCA uncovered the drastic fluctuations in house premiums in the past decade. The analysis found that the average home insurance premium rose over three times the inflation rate.
The average premium in Ontario was $782 in 2011, but it stood at $1,284 in 2021. That amounts to a dramatic growth of 64%. As for Alberta, average home insurance rates rose 140%, from $741 in 2011 to $1,779 in 2021.
The cost of home insurance in Canada is the most expensive in British Columbia. We explore why in the next section.
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Homeowner's insurance is a policy that provides coverage for a home, townhouse, condo, or apartment that you own. Coverage can be customized to include things like theft, fire, flood, earthquakes, and more.
Renter's insurance is a policy that cover's your rented home, apartment, townhouse, or condo. Renter's insurance policies can be customized to include your furniture and belongings in addition to the home you rent.
Most landlords require a renter's insurance policy to be in place when you move in. So generally, renter's insurance is something you're required to buy.