If your home insurance renewal came in higher this year, you’re not alone, and it isn’t about you. Here’s what’s happening across Ontario, and what to ask your broker before you renew.
Claims drive premiums, with a lag
Insurance works because everyone pays into a shared pool that covers those who suffer a loss. When claims rise, the cost of everyone’s share increases. Ontario has had several years of large storms and expensive water damage, and insurers are re-evaluating risk by territory and updating what their policies cover and what they charge.
The part that catches people off guard is the timing. What happens this year shows up in renewals next year, and sometimes the year after. A bad storm season doesn’t hit your premium the following month. It works its way through the system and arrives on your renewal notice later.
Rebuilding costs more than it used to
The amount your policy would pay to rebuild your home is based on construction costs, which have been rising by 5 to 10 percent a year. That figure covers more than lumber and labour. If a fire takes a house, the site has to be cleared before anything can be rebuilt, and debris removal is part of the rebuild cost your policy carries.
It’s worth revisiting that rebuild evaluation about every five years. The number isn’t just the house. It can include decks, docks, pools, hot tubs, and other structures, whether attached or detached, on the property. If it hasn’t been reviewed in a while, it may be lower than what it would actually cost to rebuild today. That’s worth checking at renewal, not after a claim.
Water is the biggest driver
Water damage has become one of the largest sources of home claims in Canada. The Insurance Bureau of Canada estimates that external water damage accounts for roughly a quarter of home claims.1 Sewer backup and overland flood are the two coverages that respond to it. They’re add-ons to most policies rather than standard coverage, and insurers regularly review eligibility and limits by location.2 If you’re not sure whether they’re on your policy or what limits you qualify for, ask your broker. It’s a quick question.
What you can actually do
Three things worth looking at before you renew:
- Review your limits and deductibles. Your deductible is the amount you pay toward a claim before insurance kicks in. A higher deductible usually lowers your premium. A rebuild limit that matches today’s costs protects you if the worst happens. Your broker can walk you through both.
- Tell your broker about upgrades. Updates to your electrical, plumbing, roof or heating system can lower your premium, but only if your insurer knows about them. If you’ve done any of that work since your last renewal, it’s worth a call.
- Ask what your water coverage includes. Sewer backup and overland flood are separate coverages on most policies. Knowing whether you have them, and what the limits are, is the point of the conversation.
None of this is a reason to shop around every year. It’s a reason to read the renewal when it arrives and ask about anything you don’t recognize. Your broker already has your file, and that’s the fastest way to make sure you’re paying for the coverage you actually need.
Call us at 1-800-376-5350, or reach your broker directly.
Sources:
- Insurance Bureau of Canada, as reported in Insurance Business Canada, “Flood coverage gap puts pressure on Canada’s broker channel,” August 21, 2026. https://www.insurancebusinessmag.com/ca/news/catastrophe/flood-coverage-gap-puts-pressure-on-canadas-broker-channel-586992.aspx
- Insurance Business Canada, “Ontario home insurance premiums climb as sewer backup and wind drive costs,” June 16, 2026. https://www.insurancebusinessmag.com/ca/news/property-insurance/ontario-home-insurance-premiums-climb-as-sewer-backup-and-wind-drive-costs-579190.aspx
