Ontario home insurance now averages $2,235 a year, up 6% from 2025. Here’s why

Here’s a closer look at what’s affecting Ontario premiums, why your bill can go up even without a claim and what you can do before your next renewal.

Why are Ontario’s home insurance premiums rising this year?

Two types of claims are behind much of this year’s increase: system backups caused by overwhelmed sewers, sump pumps or septic systems, and damage from wind and hail. At the same time, insurers are paying more to rebuild homes after a loss. Residential rebuild costs in Ontario increased 23.8% between 2021 and 2026, according to Verisk’s analysis of construction costs, with ongoing labour shortages in the skilled trades adding even more pressure.

Those trends are part of a much bigger picture. According to the Insurance Bureau of Canada (IBC), insured losses from severe weather nearly tripled to $37 billion between 2016 and 2025, compared to $14 billion during the previous decade. In 2025 alone, severe weather caused more than $2.4 billion in insured losses across Canada.

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Why do northern Ontario towns pay so much more?

Cochrane, Fort Frances and South Porcupine top the list for home insurance costs in the province, with premiums in all three over 45% above the provincial average. In fact, all 10 of Ontario’s most expensive towns for home insurance are located in the province’s north region.

Remote communities generally cost more to rebuild after a loss since labour, materials and emergency services can all be more expensive or harder to access. This increases an insurer’s potential claims costs.

Interestingly, crime doesn’t appear to be the biggest factor behind these price differences. More than half of Ontario’s postal codes are considered high risk for theft, yet seven of the province’s 10 least expensive communities carry that same rating. That suggests insurers are placing far greater weight on weather-related risks like water damage and wind than on break-ins.

Can your premium rise even if you’ve never filed a claim?

Yes, because insurers don’t base premiums solely on your personal claims history. According to Steve Cohen, vice-president of insurance and chief underwriting officer at Rates.ca, insurers also price policies based on the level of risk within your postal code.