Comprehensive Home Insurance Solutions
Protect Your Home with Best Buy
Home insurance is crucial for every homeowner, considering it protects from different types of risks related to fire, theft, and natural disasters. Whether purchasing a home for the first time or looking to renew the current insurance policy, it will be vital for you to know all the details about home insurance to efficiently protect your property and belongings.
About Best Buy Insurance
At Best Buy Insurance, we’ve been proudly serving Ontario since 1946, helping families and businesses protect what’s most important. As an independent brokerage, our focus is on finding personalized insurance solutions that work for you, not the insurance companies. We shop the market, comparing various insurers to secure the best coverage and rates that fit your unique needs. Whether it’s for your home, vehicle, or business, we’re here to provide peace of mind through reliable protection, backed by decades of trusted service and experience.
We offer a range of services to meet your personal and commercial insurance needs. From home and auto coverage to business insurance solutions, we provide tailored policies that fit your unique requirements. As an independent brokerage, we compare multiple insurers to find the best protection at competitive rates, ensuring you get the coverage you need.
Get your CAA Membership
You can reduce the cost of your home and auto insurance with a CAA membership. Don’t have a membership? Get one now, it’s quick and easy!
Get Your CAA MembershipWhy Do You Need Insurance for Your Home?
While it is not legally mandatory, if a person wanted to finance the mortgage with a mortgage lender, then home insurance would be a requirement. Most banks and financial systems require that the owner of the home keeps insurance to protect the home’s value In case they get damaged. Beyond this, home insurance offers peace of mind by covering unexpected losses like fires, floods, or theft, and protects your personal belongings.
What Does Home Insurance Cover?
A typical homeowners insurance policy has a few major areas of coverage:
- Dwelling Coverage:
This coverage pertains to the physical structure of your residence, including walls, the roof, and attached fixtures such as plumbing or electrical systems. When your dwelling is damaged due to an incident with a covered peril—for example, fire or vandalism—the insurance will pay for the repair or rebuilding of your home. - Personal Property:
This insurance coverage replaces the contents of the house, such as furniture, appliances, and electronic devices, even personal property as small as clothes, in case they are lost or damaged. - Liability Coverage:
This covers medical expenses in case someone gets injured on your property; also, it can pay the legal costs if you damage other people’s properties by accident. - Additional Living Expenses:
When your home is uninhabitable because of a covered loss, this coverage will reimburse your extra living expenses up to the policy limit. For instance, when a flood or fire occurs, you will get compensated for accommodation and groceries if you pay above your normal expenses. - Special Risks:
Some policies also cover natural disasters like earthquakes or floods; this, however, may involve purchasing additional coverage apart from the standard one, depending on your location.
What’s Not Covered?
There are many exclusions to note. The normal policy does not pay for:
- Flooding from groundwater:
For this kind of damage, you may need more an additional water cover extension coverage. - Mold and vermin infestations:
These are usually maintenance issues. - Wear and tear:
Damage resulting from normal aging or perhaps lack of maintenance.
When in doubt, please refer to your policy wording or call a licensed representative to discuss included coverage.
How Much Does Home Insurance Cost?
As of 2023, the average annual premium of home insurance in Ontario is $1,599.87 and the monthly premium is $133.32. The price differs depending on different locations, among other factors. For example, the average annual premium in Toronto is $1,635.7, while in Oshawa, the average annual premium is $1,252.14.
Moreover, each insurance company offers a different home insurance rate. For example, Aviva home insurance costs an average of$1,900.76. On the other hand, Chubb Insurance may cost around $6,957.12 .
Key Factors Affecting Premiums
Several factors determine your home insurance cost in Canada, including:
- Location:
Those who live in areas that are prone to natural disasters, such as major parts of British Columbia or Alberta, will pay much higher premiums due to the high risks of earthquakes or wildfires. - Home Value and Rebuilding Costs:
The size of your home, how old it is, and the materials used to build it affect your premium. The more it costs to replace, the more expensive your premium. - Claims History:
Insurers will look at your history of claims. If you have filed claims recently, then this may raise your premiums, while claims-free discounts are available if you have no recent claims. - Deductibles:
The higher the deductible, the lower the premium, but it is costly at the time of a claim.
Trends in Home Insurance
Insurance premiums are on the rise for property owners across Canada, over the last few years. Some of these added costs are due to different variables such as the following:
- Climate Change:
Extreme events, including flooding, wildfires, and storms, collectively caused billions of dollars in damage, forcing claims and premiums upwards countrywide. - Inflation:
With the increased building material costs for repair and replacement of homes, insurance has become more expensive. Some insurers are now offering inflation protection; your policy coverage will increase commensurately with the increasing cost. - Technology Credits:
Insurers are increasingly granting more discounts to homeowners investing in prevention technology, such as smart home security and/or water shut-off valves.
How to Get the Best Deal
Consider the following strategies for getting the best deal possible on your home insurance:
- Bundle Policies:
Most insurers offer a discount on the total premium if you bundle home and auto insurance. - Increase Your Deductible:
Increasing your deductible lowers your monthly premium. However, you just have to be sure you can afford this amount in case of a claim. - Improve Your Home’s Security:
Most insurers will give a discount for smoke detectors, security systems, and water leak detectors. - Shop Around:
Plans and prices vary from one insurer to another. Comparing multiple quotes is essential. Online comparison tools can simplify this process.
Protect Your Home with Insurance Now!
Home insurance in Canada is an effective investment to cover property and contents against any eventualities. Being more aware of different types of coverages and continuously updated about probable premium determining factors will most likely enable you to make the right decision that meets your requirements. Whether it involves the addition of flood coverage for a high-risk area or bundling insurance for discounts, being proactive ensures you get the best protection for your home at the right price.
Get a Quote
Your home deserves the best protection. Get a quote today to find comprehensive home insurance that offers peace of mind when it matters most.
Home Insurance FAQs
Home insurance generally covers the structure of your home, personal belongings, liability protection, and additional living expenses if your home is uninhabitable due to a covered event.
The cost is based on factors like the size and location of your home, its replacement cost, the materials used in its construction, your insurance claims history, and any additional coverage you add.
Standard home insurance does not usually cover flood damage. You may need to add optional flood insurance for this protection.
Standard home insurance does not cover renovations. You should inform your insurer before starting renovations to ensure your policy covers the increased risk.
While it’s not legally required, home insurance is highly recommended to protect your property and belongings from unforeseen events. Moreover, most mortgage lenders require you carry home insurance to protect their investment.