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
MPP Sarah Jama asked to leave Ontario legislature for wearing keffiyeh
MPP Sarah Jama was asked to leave the Legislative Assembly of Ontario by House Speaker Ted Arnott on Thursday for wearing a keffiyeh, a garment which has been banned at Queen’s Park.
Mountain guide dies after falling into a crevasse in Banff National Park
A man who fell into a crevasse while leading a backcountry ski group deep in the Canadian Rockies has died.
2 teens charged in Halifax homicide: police
Two teenagers have been charged with second-degree murder in connection to an alleged homicide near the Halifax Shopping Centre earlier this week.
'Deep ignorance': Calls for Manitoba trustee to resign sparked after comments about Indigenous people and reconciliation
A rural Manitoba school trustee is facing calls to resign over comments he made about Indigenous people and residential schools earlier this week.
12-year-old hippo in Japan raised as a male discovered to be a female
When Gen-chan arrived at a zoo in Japan in 2017, no one questioned whether the then-five-year-old hippopotamus was a boy. Seven years later, zoo staff made a surprising discovery: Gen-chan, now 12, was female.
Here's why Harvey Weinstein's New York rape conviction was tossed and what happens next
Here's what you need to know about why movie mogul Harvey Weinstein's rape conviction was thrown out and what happens next.
Legendary hockey broadcaster Bob Cole dies at 90: CBC
Bob Cole, a welcome voice for Canadian hockey fans for a half-century, has died at the age of 90. Cole died Wednesday night in St. John's, N.L., surrounded by his family, his daughter, Megan Cole, told the CBC.
Humanist group threatening to sue Vancouver over council prayers
The B.C. Humanist Association has threatened legal action against the City of Vancouver for allowing prayers at council, following a similar warning issued earlier this month to a smaller community on Vancouver Island.
LHSC performs a Canadian first in robot-assisted direct lateral spine surgery
Spine surgery may never be the same for people with chronic back pain and other physical ailments.