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.

Common Risks Per Province

• British Columbia: Earthquakes pose the most significant risk in BC, mainly since Victoria and Vancouver lie on the edge of two tectonic plates. Earthquake insurance is, therefore, more expensive in this province. Rebuilding costs are also higher because of the seismic building code requirements.

• Quebec: Montreal and Quebec City have several older houses. The outdated electrical systems and plumbing pose a high risk of claims, making insurance more costly.

• Alberta: Forest fires and flooding are the two most significant factors impacting home insurance

• Ontario: Flooding is a significant risk factor.

• Prince Edward Island: Rising sea levels, high winds, and powerful storms have the greatest impact on home insurance.

• Nova Scotia: The most significant risks residents face are hurricanes and flooding, especially in Dartmouth and Halifax.

• New Brunswick: High windstorms and inland flooding pose the greatest risk.

• Newfoundland and Labrador: Flooding, hurricane damage, and wind damage have the highest effect on home insurance.

• Saskatchewan: Because of the extreme weather in this province, pipe damage is the most significant risk.

• Manitoba: While earthquakes and flooding are unlikely, areas near Winnipeg have suffered damage when the Red River overflows.