Home Insurance Premiums Expected to Rise in 2024
Home insurance may not get any cheaper for Canadians in 2024. Home insurance premiums are expected to be impacted due to inflation, extreme weather events, and high claims costs, similar to what happened in 2023.
Every neighbourhood has different types of homes with different risks. Insurance companies track the number, type, and cost of claims by neighbourhood to understand how likely it is that a future claim may happen.
If you live in an area experiencing severe weather events and there’s an increase in claims, the cost to insure homes in your neighbourhood may increase.
Canadian home insurance premiums saw a 7.5% average rate increase in the third quarter of 2023 compared with 2022.
Factors that can impact the price of your home insurance:
Inflation
Inflation remains higher than what has been experienced in Canada in recent years.
When inflation causes home repairs and rebuilds to cost insurers more, those costs typically impact home insurance customers.
Insurance premiums increase to account for the increased cost of repairing and replacing homeowners’ properties.
Canadians can also expect their car insurance premiums increases in 2024. Car theft is helping to push up car insurance premiums, particularly in Ontario.
Extreme weather
Floods and fires tend to be the biggest threat to Canadian communities.
Insured catastrophic losses in Canada now routinely exceed $2 billion annually, most of it due to water-related damage.
The year 2023 was considered an unprecedented year for wildfires in Canada. Coverage against wildfires is usually included in a standard home insurance policy.
Extreme weather events can impact home insurance premiums because of the increased risk of property damage.
High cost of home insurance claims
Supply chain issues and labour shortages are continuing to make repairs and replacements more expensive for home insurance companies.
The result is that you can expect home policy premiums to continue to rise.
What else affects my home insurance premium?
Your province and your neighbourhood can impact your home insurance rate. How much crime is in your area can also affect your rate.
The age of your home, its electrical wiring, plumbing, condition of its roof and windows, and any renovations can also be factors that contribute to the price of your insurance premium. Do you have a high-risk stove such as a wood stove or do you have oil-based heaters?
The more expensive your home, the more expensive your insurance premium will be.
How to save on your home insurance premium
You can bundle your home and car insurance. When you bundle your car and home insurance, you can get a discount and it’s an easy way to cut costs without cutting coverage.
Are you getting all possible discounts to save on your home insurance?
What does home insurance cover:
- Theft
- Fire
- Third-party “slip and fall’’ accidents
- Vandalism
- Some weather-related events like ice damage, hail and windstorms, tornadoes, hurricanes, and wildfires
What extra insurance should I consider to protect my home?
Overland water damage coverage, sewer backup, and earthquake coverage are optional insurance coverages that you can add to your home insurance policy to give your home more protection.
Do you have art or collectibles that you want to protect? They may not always be covered under your homeowner’s policy for their full value.
Let Western Financial Group help you protect what’s likely your biggest investment – your home. We are skilled insurance shoppers. We work with Canada’s leading insurance partners to get you personalized coverage for your home at the right value for you.
