Most Ontario homeowners are seeing higher home insurance renewal prices because rebuilding a home costs far more than it did before 2020, and severe-weather claims keep climbing. Statistics Canada reports that homeowners’ insurance premiums rose 45.0% nationally from December 2019 to December 2025, more than double general inflation. Before you renew, check your rebuild amount, your water coverage and your deductible, then compare quotes while your current term is ending, not mid-term.
Your renewal is the one moment each year when you can change coverage, deductibles or insurers without a mid-term cancellation penalty. This guide explains what is pushing premiums up across Ontario, what you control, and the questions to settle before you sign.
Why did my home insurance go up at renewal?
Three things usually drive a higher renewal: market-wide costs, severe weather, and changes in your own file. The first two affect everyone, which is why switching insurers does not always erase an increase.
Rebuilding a home costs much more than it used to
Your premium is tied to what it would cost to rebuild your home, not its market value. Statistics Canada’s study Insurance in Canada: What’s driving premiums higher? (June 2026) shows how fast those costs have moved:
| Measure (Canada) | Period | Change |
|---|---|---|
| Residential Building Construction Price Index | Q4 2019 to Q4 2025 | +69.4% |
| Homeowners’ home and mortgage insurance premiums | Dec 2019 to Dec 2025 | +45.0% |
| Passenger vehicle insurance premiums | Dec 2019 to Dec 2025 | +23.9% |
| All-items Consumer Price Index | Dec 2019 to Dec 2025 | +21.0% |
| Homeowners’ maintenance and repair costs | Dec 2019 to Dec 2025 | +19.1% |
The pressure has not stopped. In its September 2026 Consumer Price Index release (October 19, 2026), Statistics Canada reported that homeowners’ home and mortgage insurance prices were up 4.9% from a year earlier, against headline inflation of 3.1%.
There is one nuance worth knowing. Construction cost growth has slowed: Statistics Canada’s residential building construction price index rose 0.5% in the second quarter of 2026, and residential costs in Toronto fell 0.8% that quarter. Premiums still reflect the large increases of 2020 to 2025, so a slower year for builders does not mean a lower renewal.
Severe-weather claims keep setting records
Insurance Bureau of Canada (IBC) reported on October 22, 2026 that severe weather caused more than $3.7 billion in insured losses in summer 2026, the third-costliest summer on record. Ontario events included flooding in the Niagara Region in July and August and storms across Ontario and Quebec in late June and early July.
The long-term trend is the bigger story. IBC says average annual insured losses over the last decade topped $3.7 billion, up from $1.4 billion in the decade before. Statistics Canada notes that catastrophic event claims, which are mostly homeowners’ claims, hit $8.6 billion in 2024. Insurers price future policies with these losses in mind.
Changes in your own file
IBC lists the factors insurers weigh for each home: replacement cost, how well the home is maintained and updated, wood stoves, unique features, location, distance to the nearest fire hydrant and fire station, and claims history. IBC notes that past claims are often an insurer’s best predictor of future claims. A recent claim, a lapsed discount or a change in how you use the home can move your price on top of market increases. Our guide to the top factors that affect your home insurance premium in Ontario covers those personal factors in more detail; this article focuses on the renewal decision.
Who regulates home insurance rates in Ontario?
This is where home and auto insurance differ. Ontario auto insurers need the approval of the Financial Services Regulatory Authority of Ontario (FSRA) to change the rates they use to calculate premiums. FSRA describes its role in property insurance differently: making sure that those selling insurance are licensed and follow the legislation, and reviewing complaints when an insurer is not following the rules.
FSRA also says it cannot make an insurance company sell you a policy or mediate disputed or denied claims. In practice, as IBC puts it, every insurer takes different factors into consideration when pricing a home. That is why two quotes for the same house can be far apart, and why comparing at renewal matters more for home insurance than many people assume.
Is your home insurance renewal based on the right rebuild amount?
Check the dwelling limit on your renewal before you look at the price. With residential construction costs up 69.4% since late 2019, a limit set when you bought the home may no longer cover a full rebuild.
Ask your insurer or broker three questions:
- How was my rebuild cost calculated, and when was it last updated?
- Does my policy pay replacement cost or actual cash value for the building and contents?
- Does it include guaranteed or extended replacement cost, and what are the conditions?
IBC also warns against over-insuring, so the goal is an accurate figure, not the largest one. Renovations matter too: a finished basement, new kitchen or addition raises your rebuild cost. The Registered Insurance Brokers of Ontario (RIBO) reminds consumers to tell their broker and insurer about any material changes in their circumstances.
What to check before your home insurance renewal in Ontario
Use this list when the renewal notice arrives. FSRA’s own consumer tips cover most of the same ground.
- Premium change. Ask what portion is a market-wide increase and what portion relates to your file, such as a claim or a removed discount.
- Dwelling limit. Confirm it reflects today’s rebuild cost (see above).
- Water coverage. IBC says basement damage from a sewer backup is covered only if you bought optional sewer backup coverage. Flood coverage is also optional, and groundwater and seepage are typically not standard. Our explainer on sewer backup coverage walks through the endorsement, and our flood zone guide explains overland flood risk.
- Endorsement limits. Check the dollar limit on each add-on, not just whether it is listed.
- Deductibles. Note the standard deductible and any separate deductible for water or wind. FSRA says a larger deductible may lower your premium, but only choose one you could pay tomorrow.
- Additional living expenses. IBC suggests asking about the limit if your home becomes unlivable after a claim.
- Discounts. Ask about bundling home and auto, security and alarm upgrades, non-smoker and annual payment discounts.
- Changes in use. Renting out a room or basement suite, running a business from home or leaving the house empty for long periods can all affect coverage. Snowbirds should read our guide to home insurance rules before you leave for the winter.
Should you switch home insurers at renewal or stay?
If you are going to switch, do it at renewal. FSRA and IBC both advise waiting until renewal time to change insurers, because cancelling mid-term can trigger a cancellation penalty.
Compare like for like. A cheaper quote with lower sewer backup limits, a higher water deductible or actual cash value instead of replacement cost may not be cheaper after a claim. Line up the coverage, limits and deductibles side by side before you compare prices. Line up your start dates too, so the new policy begins the day the old one ends and you are never without coverage.
Staying can also be the right call. If your increase matches the market and your coverage fits, a broker may be able to adjust deductibles or add discounts with your current insurer instead.
How to lower your home insurance premium without cutting the wrong coverage
IBC’s consumer guidance lists practical ways to manage the cost:
- Shop around and compare prices at renewal.
- Bundle home and auto insurance, and ask about every discount you may qualify for.
- Raise your deductible, if you have savings to cover it.
- Protect the home against fire, theft, water and severe weather damage.
- Pay your premium annually if your insurer charges less for it.
- Review your coverage every year and avoid over-insuring.
Water protection upgrades may also be partly subsidized. The City of Toronto’s Basement Flooding Protection Subsidy Program offers up to $6,650 per eligible property, covering up to 80% of the invoiced cost of measures such as backwater valves (up to $1,600 per device, two devices maximum) and sump pumps (up to $2,250). Funding is first-come, first-served and subject to annual Council approval. If you live outside Toronto, ask your municipality whether it offers a similar program. Ask your insurer whether these upgrades earn a discount or make sewer backup coverage easier to get.
What not to cut: sewer backup coverage if you have a finished basement, and liability coverage. A lower premium is not worth a gap you discover only after a claim.
How a broker helps with your home insurance renewal
A broker can compare several insurers at once and explain why their quotes differ. RIBO says a broker has a duty to provide professional advice, and every RIBO-licensed broker must give clients a commission disclosure letter. You can confirm any broker’s licence on RIBO’s public registry.
AAXEL Insurance Brokers is an independent Ontario brokerage that works with more than 60 insurers. [CONFIRM: Replace with a real anonymised renewal example from AAXEL’s brokers, or delete this sentence.] If your renewal has gone up, request a home insurance review before your term ends. You can also read more about home insurance with AAXEL or save by bundling home and auto. If you are also renewing your car policy this season, see our guide to car insurance renewal in Ontario.
Frequently asked questions
Why is my home insurance renewal higher this year in Ontario?
Most increases reflect market-wide costs. Statistics Canada reports homeowners’ insurance premiums rose 45.0% nationally from December 2019 to December 2025, while residential construction costs rose 69.4%. Severe-weather losses and changes in your own file, such as a recent claim, can add to that.
Does FSRA approve home insurance rates in Ontario?
FSRA approves rate changes for auto insurance. For property insurance, FSRA describes its role as making sure those selling insurance are licensed and follow the legislation, and reviewing complaints. Each insurer weighs different factors when pricing a home, so quotes can vary widely.
Is my home insured for its market value or its rebuild cost?
Home insurance is based on what it would cost to rebuild your home, not what it would sell for. Construction costs have risen sharply since 2019, so check that your dwelling limit still reflects a full rebuild.
Can I switch home insurance before my renewal date?
You can, but cancelling mid-term may trigger a cancellation penalty. FSRA and IBC both suggest waiting until renewal to change insurers. Make sure the new policy starts the day the old one ends.
Is sewer backup covered by standard home insurance in Ontario?
No. According to IBC, basement damage from a sewer backup is covered only if you bought optional sewer backup coverage. Flood coverage is also optional, and groundwater and seepage are typically not standard.
How can I lower my home insurance premium at renewal?
Compare quotes, bundle home and auto, ask about discounts, consider a higher deductible you can afford, and pay annually if it costs less. Protecting the home against water, fire and theft can also help. Avoid cutting coverage you would need after a claim.
Does making a claim raise my home insurance premium?
It can. IBC says your claims history may affect your premium because past claims are often an insurer’s best predictor of future claims. Ask your broker how a specific claim affects your renewal.
Do I need to tell my insurer about renovations or a basement rental?
Yes. RIBO tells consumers to update their broker and insurer about any material change in their circumstances. Renovations can raise your rebuild cost, and renting out space changes how the home is used.
Are home insurance premiums still rising in 2026?
Nationally, yes. Statistics Canada’s September 2026 Consumer Price Index showed homeowners’ home and mortgage insurance prices up 4.9% year over year, above headline inflation of 3.1%. IBC reported more than $3.7 billion in insured severe-weather losses in summer 2026.
Sources
All pages were opened and read on October 27, 2026.
- Statistics Canada: Insurance in Canada: What’s driving premiums higher? (June 16, 2026): Premium, CPI, construction and repair cost changes, Dec 2019 to Dec 2025; catastrophic claims
- Statistics Canada: Consumer Price Index, September 2026 (October 19, 2026): Homeowners’ insurance +4.9% year over year; headline CPI +3.1%
- Statistics Canada: Building construction price indexes, second quarter 2026 (July 24, 2026): Residential construction costs, Q2 2026, including Toronto
- Insurance Bureau of Canada: Summer 2026 insured damage (October 22, 2026): Summer 2026 losses, Ontario events, decade averages
- IBC: How home insurance rates are set: Rating factors and claims history
- IBC: How to drive down your home insurance rates: Ways to lower premiums; switching at renewal
- IBC: Flooding and insurance: Sewer backup, flood, groundwater and additional living expenses
- FSRA: Auto insurance rate approvals: FSRA approval of auto rate changes
- FSRA: Property and other insurance: FSRA’s role in property insurance
- FSRA: Helping you navigate property insurance: Consumer questions, deductibles, cancellation penalty
- RIBO: Consumer rights and expectations: Broker duties, commission disclosure, material changes, licence registry
- City of Toronto: Basement Flooding Protection Subsidy Program: Subsidy amounts and conditions
Disclaimer
This article is general information about home insurance in Ontario as of October 2026. It is not advice about your policy. Coverage, exclusions, limits and pricing vary by insurer and policy wording. Speak with a licensed broker about your situation before changing your coverage.
