How Much Does Home Insurance Cost in Canada in 2026?

Whether you're a first-time buyer or renewing your policy, understanding home insurance costs is one of the most important financial decisions you'll make as a Canadian homeowner.

The short answer: Canadian households spent an average of $1,018 a year on home insurance in 2023 — about $85 a month — according to Statistics Canada. That average includes renters, so a typical homeowner pays more, and the figure shifts a lot with where you live, what your home would cost to rebuild and the coverage you choose.

In this guide, we'll break down exactly what drives home insurance premiums in Canada, show you how costs compare by province, and give you practical steps to lower your bill without sacrificing protection.

• What the average home insurance cost is in Canada
• Key factors that affect your premium
• Province-by-province price breakdown
• What coverage is typically included
• How to lower your home insurance costs
• When to shop for a new policy

Statistics Canada's Survey of Household Spending is the official source: average spending on homeowners' insurance was $1,018 per household in 2023, up from $685 in 2015 (+49%). Prices are still climbing — the Consumer Price Index for homeowners' home and mortgage insurance rose 5.1% in 2025 and 4.9% in the 12 months to September 2026.

Because the survey averages over every household, including renters who pay nothing for home insurance, a typical owner's premium is higher than $1,018. Your own quote depends on the factors below.

Highest and Lowest Provinces (2023)

Source: Statistics Canada, table 11-10-0222-01. For all ten provinces, recent price changes and the reasons behind them, see our comparison of home insurance rates by province.

Insurance companies calculate your property insurance premium based on risk — the higher the likelihood of a claim, the more you pay. Here are the main factors they consider:

1. Location: Homes in flood-prone areas, high-crime neighbourhoods, or regions with extreme weather pay more. Urban areas in Ontario and BC tend to have higher home insurance premiums.
2. Home value and replacement cost: Insurance covers the cost to rebuild your home, not its market value. A home that costs $400,000 to rebuild will carry a higher premium than one costing $200,000.
3. Age and condition of the home: Older homes with aging electrical systems (like knob-and-tube wiring), oil furnaces, or outdated plumbing are considered higher risk.
4. Type of construction: A wood-frame home is more susceptible to fire damage than a brick home, which affects your rate.
5. Claims history: If you've made multiple claims in recent years, insurers see you as a higher risk and will charge a higher premium — or may decline coverage altogether.
6. Credit score: Many Canadian insurers use credit history as a rating factor. A strong credit score can lower your home insurance cost significantly.
7. Coverage amount and deductible: The more coverage you choose, the higher your premium. Conversely, choosing a higher deductible lowers your monthly or annual rate.
8. Security features: Alarm systems, smoke detectors, deadbolts, and sprinkler systems can earn you discounts of 5–15%.
9. Proximity to a fire station or hydrant: Homes within 8km of a fire hall and close to a hydrant generally pay less.

A typical home insurance policy in Canada includes four core areas of protection:

• Dwelling coverage: Pays to repair or rebuild your home if it's damaged by a covered peril — fire, lightning, windstorm, hail, explosion, vandalism, or certain types of water damage.
• Personal property coverage: Covers your belongings — furniture, appliances, electronics, clothing — if they're stolen or damaged.
• Liability coverage: Protects you if someone is injured on your property. Standard policies typically include $1 million to $2 million in liability.
• Additional living expenses (ALE): If your home becomes uninhabitable, ALE pays for your hotel, meals, and other living costs while repairs are underway.

Important: Standard policies in Canada do NOT cover overland flooding, earthquake damage, or sewer backup unless you specifically add these endorsements. Given Canada's increasing flood risk, adding water and sewer backup coverage is worth considering.

Yes — and it's significant.

Condo insurance is typically less expensive because the condo corporation's master policy already covers the building's exterior and common areas. As a condo owner, you're primarily insuring your unit's interior, your personal belongings, and your liability.

• House: you insure the whole building, so its rebuilding cost drives the premium.
• Condo unit: you insure the interior, your belongings, any improvements and your liability, so premiums are usually much lower.

Condo owners should also check whether their policy includes loss assessment coverage — if the condo corporation's deductible is high (sometimes $25,000+), unit owners can be assessed a share of that cost.

The good news: there are real, actionable ways to reduce your insurance premium without cutting important coverage.

1. Bundle your home and auto insurance with the same provider — discounts of 10–15% are common.
2. Increase your deductible from $500 to $1,000 or $2,500. A higher deductible means lower premiums, but make sure you can afford the out-of-pocket cost.
3. Install a monitored alarm system. Many insurers offer 5–10% discounts for central monitoring.
4. Update your home's systems. Replacing knob-and-tube wiring or upgrading your electrical panel can reduce your premium.
5. Maintain a good credit score. Paying bills on time directly impacts your home insurance cost in Canada.
6. Avoid making small claims. Frequent small claims raise your risk profile.
7. Shop around at renewal time. Getting a home insurance quote from multiple providers can save you hundreds annually.

Your insurance needs change over time. Here are the key moments to review your coverage:

• At renewal: Your insurer may quietly raise your premium. Always review before auto-renewing.
• After a major renovation: Additions or finished basements increase your home's replacement value.
• After a large purchase: New jewelry, art, or electronics may exceed your policy limits.
• After life changes: Marriage, divorce, or a new family member can affect your coverage needs.
• After a market shift: Rising construction costs mean your rebuild cost may be higher than when you first insured.

Experts recommend reviewing your home insurance every 1–2 years, even if nothing has changed.

Getting a home insurance quote used to mean calling an agent and waiting for callbacks. Today, online platforms let you answer a few questions about your property and see an estimated quote online.

When getting a quote, you'll typically need:

• Your home's address and year of construction
• Square footage and number of storeys
• Type of heating, electrical, and plumbing systems
• Any security systems or monitoring services
• Your current coverage limits and deductible (if renewing)
• Your claims history for the past 5 years

See also: How Much Does Condo Insurance Cost in Canada?

Canadian households spent an average of $1,018 on home insurance in Canada in 2023 (Statistics Canada), but your specific insurance premium depends on your home's location, age, construction type, coverage choices, and personal factors like credit history.

The most important thing you can do is get multiple quotes and understand exactly what you're covered for — before you need to make a claim. With online insurance platforms, this process now takes less time than your morning coffee.