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
Canadian gov't proposes new foreign influence registry as part of wide-spanning new bill
Prime Minister Justin Trudeau's government is proposing a suite of new measures and law changes aimed at countering foreign interference in Canada, amid extensive scrutiny over past meddling attempts and an ever-evolving threat landscape.
Boeing Starliner capsule's first crewed test flight postponed
The long-awaited first crewed test flight of Boeing's new Starliner space capsule was called off for at least 24 hours over a technical issue that launch teams were unable to resolve in time for the planned Monday night lift-off.
Teacher charged in historical sexual assault of Calgary teenage girl
Calgary police have charged a teacher with the alleged sexual assault of a teenage girl more than 20 years ago.
Winnipeg man admits to killing four women, argues he's not criminally responsible
Defence lawyers of Jeremy Skibicki have admitted in court the accused killed four Indigenous women, but argues he is not criminally responsible for the deaths by way of mental disorder – this latest development has triggered a judge-alone trial rather than a jury trial.
Man banned from owning animals after fatal Calgary dog attack
The owner of three Calgary dogs that got loose and mauled a woman to death in 2022 has been ordered to pay a $15,000 fine within one year and banned from owning any animal for 15 years.
East-end Ottawa family dealing with massive rat infestation
Residents in Ottawa’s Elmridge Gardens complex are dealing with a rat infestation that just won’t go away. Now, after doing everything they can to try to fix the issue, they are pleading with the city to step in and help.
Mediterranean staple may lower your risk of death from dementia, study finds
A daily spoonful of olive oil could lower your risk of dying from dementia, according to a new study by Harvard scientists.
An El Nino-less summer is coming. Here's what that could mean for Canada
As Canadians brace themselves for summer temperatures, forecasters say a weakening El Nino cycle doesn’t mean relief from the heat.
Newfoundland and Labrador latest province to tighten rules on Airbnbs
Newfoundland and Labrador is the latest jurisdiction to bring in stricter rules for short-term rentals, with a coming set of regulations that will force operators to register with the provincial government.