[Survey] Canada home insurance market: Key figures and trends

Home insurance plays an essential role in protecting properties and homes against a multitude of risks. In Canada, where seasons vary and weather conditions can be unpredictable, the importance of home insurance is particularly high. To better understand the attitudes, preferences and behaviors of Canadian homeowners and renters when it comes to home insurance, we conducted a survey involving 1,567 respondents during the month of July, completed by the most recent data on home insurance in Canada.

In 2022, the average home insurance premiums paid in Canada is about $960

In 2022, the provinces with the highest average home insurance premiums are Ontario, Saskatchewan, Manitoba, and Alberta, suggest data shared by Ratehub. Ontario tops the list with an average premium of $1,487, reflecting the highest cost among the provinces. Saskatchewan follows closely with a premium of $1,100, indicating a significant but slightly lower average compared to Ontario. Manitoba and Alberta also have notably higher premiums, standing at $1,032 and $1,000, respectively. These figures suggest a regional disparity in home insurance costs across Canada, with the western provinces generally experiencing higher premiums compared to the eastern provinces.

Average home insurance premium went up 88% since 2015 in Ontario

The data presented below reveals a consistent upward trend in the average home insurance premiums in Ontario from 2015 to 2022, which almost doubled during that period (+88%). In 2015, the average premium stood at $791, and it steadily increased over the subsequent years. Notably, there was a substantial spike from 2018 to 2019, with a $193 rise, marking a significant annual increase. The trend continued, albeit at a slightly slower pace, as evidenced by the incremental growth in 2020 and 2021. However, the most notable jump occurred between 2021 and 2022, with the average premium surging to $1487 (+16% in comparison with 2021), the highest in the observed period.

Average home insurance premium reached $984 in Quebec in 2023

According to data available since 2015. In fact, the average home insurance premium in Quebec rose from $709 in 2015 to $822 in 2019 (on the eve of Covid), before climbing to $984 in 2023 - a global increase of 38.8% over the past 8 years.

Average cost per home insurance claim up 42.9% between 2015 and 2020 in Canada

Although home insurance premiums are rising steadily in Canada, the average cost of claims is increasing even faster. This is highlighted by the Insurance Bureau of Canada (IBC), which recently pointed out the growing weight of natural disasters in the country, creating a significant financial impact on insurance companies. As a matter of fact, the average cost of a home insurance claim rose from $9,920 in 2015 to $14,177 in 2020, an increase of 42.9% in the space of 5 years.

84.5% of Canadians say they are satisfied or very satisfied with their current home insurance

The results of the survey regarding home insurance satisfaction in Canada reveal an interesting perspective on the general sentiment towards current home insurance policies. Notably, a significant majority of respondents, comprising 62.2%, indicated being very satisfied with their existing home insurance coverage. This high level of contentment suggests that a substantial portion of homeowners are finding their insurance arrangements to be effective and meeting their expectations.

Furthermore, 22.3% of participants expressed satisfaction, contributing to an overall positive trend in sentiment. However, it's worth noting that a small but notable portion of respondents (2.8%) reported being very dissatisfied with their home insurance, and an additional 6.5% expressed dissatisfaction.

Fire and liability coverage, the two main risks against which Canadians are seeking home insurance coverage

The outcomes of the survey pertaining to the primary motivations behind purchasing home insurance shed light on the driving factors influencing homeowners' decisions in Canada. Notably, a substantial proportion of respondents, accounting for 59.4%, cited protection against damages caused by fire as a leading reason for acquiring home insurance coverage. This result underscores the prevalent awareness of the potential risks associated with fire incidents and the importance of safeguarding one's property against such threats. Additionally, 53.1% of participants mentioned liability coverage as a key consideration, highlighting the significance of financial protection in the event of legal claims arising from accidents on the property. Protection against water damage was identified as a motivating factor for 40.6% of respondents, showcasing the growing recognition of the vulnerabilities posed by water-related incidents. Similarly, safeguarding against theft garnered attention from 37.5% of those surveyed, underscoring the concern for property security.

On the other hand, only 15.6% prioritized protection against natural disasters, potentially suggesting a perception that the likelihood of such events might be lower or that other forms of coverage are more pertinent. These results indicate that individuals are making informed decisions based on a combination of perceived risks and the desire for comprehensive coverage, thereby showcasing the diverse considerations that influence the purchase of home insurance in Canada.

22.4% of Canadians say they choose their home insurance based on customer service responsiveness

The survey results regarding preferred criteria for choosing a home insurance company in Canada provide valuable insights into consumer preferences:

• Notably, 66.46% of respondents prioritize competitive prices, highlighting the significance of cost-effectiveness
• Additionally, 22.36% emphasize responsive customer service, while 15.84% value company reputation.
• The findings also suggest varying levels of importance placed on extended coverage, insurance customization, and online policy management.
• Furthermore, 10.25% and 18.94% of participants respectively consider discounts/promotions and customer reviews as influential factors.

This illustrates a mix of practicality, trust, and peer influence shaping the decisions of homeowners when selecting insurance providers.

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Nolwenn Abolivier

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