Ontario home insurance rates to rise 5 per cent or more in 2022
Due to the pandemic, inflation and supply chain issues, many things have increased in price and now it looks like home insurance will as well.
“We do anticipate seeing larger than normal increases in 2022," Henry Lof, with the insurance comparison website RatesDotCa, told CTV News Toronto Friday.
Lof said the industry is expecting that home insurance premiums will rise 5 per cent in 2022 and some companies may increase premiums 10 per cent or more.
According to the website, the average cost for home insurance last year in Ontario was $1,342 annually. It expects a jump of $67 to $1,409, but Lof said some companies may implement larger increases.
One of the primary reasons for the hikes is extreme weather issues due to climate change. The tornado that ripped through Barrie, Ontario in July led to insurance losses of $100 million.
The flooding in British Columbia in November was the most severe weather event in the province's history, leading to losses of more than $450 million.
"We do know across Canada in 2021, there were about 2 billion dollars of severe weather claims that were incurred from coast to coast,” Rob de Pruis, with the Insurance Bureau of Canada (IBC), told CTV News Toronto.
It may br frustrating for clients to see their rates go up even if they haven’t had a claim, but the industry says that when there are huge losses they will push up premiums for all customers.
“The underpinning concept of insurance is spreading the losses of the few among the many," Lof said.
IBC said that inflation, supply chain issues and the rising costs to rebuild a home are also putting pressure on premiums.
Many homeowners have also invested in their homes during the pandemic which makes them worth more.
RatesDotCa said rates are rising for multiple reasons — renovations have increased home values, the cost of home replacement has gone up, there has been an increase in the price of building materials and climate change and severe weather is leading to large insurance losses.
Clients are advised to ask if they're eligible for any discounts and to shop around to see if they can find a better deal.
“Across Canada, there are 200 insurance companies selling home, auto and business insurance, so there is quite a bit of competition,” de Pruis said.
Homeowners are also advised to contact their insurer to see if a security system, a good credit rating or bundling home and auto policies can save them money.
One of the most common insurance claims is flooding, so you want to make sure you have the proper flood coverage because, when it comes to water damage, there can be big differences between policies.
Customers are warned to not shop by price alone and to compare policies carefully.
CTVNews.ca Top Stories
'Anything to win': Trudeau says as Poilievre defends meeting protesters
Prime Minister Justin Trudeau is accusing Conservative Leader Pierre Poilievre of welcoming 'the support of conspiracy theorists and extremists,' after the Conservative leader was photographed meeting with protesters, which his office has defended.
What is changing about Canada's capital gains tax and how does it impact me?
The federal government's proposed change to capital gains taxation is expected to increase taxes on investments and mainly affect wealthy Canadians and businesses. Here's what you need to know about the move.
'My stomach dropped': Winnipeg man speaks out after being criminally harassed following single online date
A Winnipeg man said a single date gone wrong led to years of criminal harassment, false arrests, stress and depression.
Bank of Canada officials split on when to start cutting interest rates
Members of the Bank of Canada's governing council were split on how long the central bank should wait before it starts cutting interest rates when they met earlier this month.
Pilot reported fire onboard plane carrying fuel, attempted to return to Fairbanks just before crash
One of the two pilots aboard an airplane carrying fuel reported there was a fire on the airplane shortly before it crashed and burned outside Fairbanks, killing both people on board, a federal aviation official said Wednesday.
'One of the single most terrifying things ever': Ontario couple among passengers on sinking tour boat in Dominican Republic
A Toronto couple are speaking out about their 'extremely dangerous' experience on board a sinking tour boat in the Dominican Republic last week.
Quebec nurse had to clean up after husband's death in Montreal hospital
On a night she should have been mourning, a nurse from Quebec's Laurentians region says she was forced to clean up her husband after he died at a hospital in Montreal.
7 surveillance videos linked to extortions of South Asian home builders in Edmonton released
The Edmonton Police Service has released a number of surveillance videos related to a series of extortion cases in the city now dubbed 'Project Gaslight.'
Ukraine uses long-range missiles secretly provided by U.S. to hit Russian-held areas, officials say
Ukraine for the first time has begun using long-range ballistic missiles provided secretly by the United States, bombing a Russian military airfield in Crimea last week and Russian forces in another occupied area overnight, American officials said Wednesday.