Home insurance is going up in Ontario mainly because insurers are paying for more weather damage, and rebuilding a home costs far more than it did before 2020. Statistics Canada’s price index for homeowners’ insurance rose 4.9% in the year to September 2026, while overall prices rose 3.1%. Severe weather caused more than $3.7 billion in insured damage across Canada this summer, including flooding in Ontario’s Niagara Region.
If your renewal notice came in higher this fall, two releases from the past two weeks explain much of why. This post walks through what the data says, what it does not say about your own premium, and the steps that can still lower what you pay. Figures are current as of October 29, 2026.
What do the latest numbers say about home insurance prices?
Statistics Canada’s Consumer Price Index for September 2026, released October 19, shows home insurance rising faster than inflation again.
| Measure (Canada) | Change | Period |
|---|---|---|
| Homeowners’ home and mortgage insurance | +4.9% | Sept 2025 to Sept 2026 |
| All-items CPI | +3.1% | Sept 2025 to Sept 2026 |
| Homeowners’ replacement cost | −1.9% | Sept 2025 to Sept 2026 |
| Homeowners’ home and mortgage insurance | +45.0% | Dec 2019 to Dec 2025 |
| All-items CPI | +21.0% | Dec 2019 to Dec 2025 |
Sources: Statistics Canada, The Daily, Oct 19, 2026; Statistics Canada, “Insurance in Canada: What’s driving premiums higher?”, June 16, 2026.
Statistics Canada named faster growth in homeowners’ insurance as one reason shelter costs sped up in September. Over six years, the index has risen more than twice as fast as overall prices.
Three cautions before you compare these numbers with your own bill:
- They are national. The release does not break home insurance out for Ontario.
- They track the same coverage over time. Statistics Canada builds the index from quotes for fixed policy profiles and treats any change in coverage as a quality change, not a price change (methodology paper, April 2025). If your policy added coverage or a higher dwelling limit, your increase can be larger than the index.
- They are quotes, not bills. The index uses broker quotes for representative households, so it shows the market trend, not what any one homeowner pays.
Why is home insurance going up in Ontario if building costs have cooled?
This is the detail most coverage of the CPI skips. Statistics Canada’s methodology describes the homeowners’ insurance index as two parts multiplied together: the replacement cost of the dwelling, and the insurance rate for an identical policy on a home of a given value.
In September, the CPI’s separate homeowners’ replacement cost index fell 1.9% year over year. Yet insurance still rose 4.9%. So this year’s increase is not mainly about lumber or labour. It suggests the main driver is the price of the cover itself: what insurers expect to pay out in claims, and what they pay for their own protection against catastrophes.
That does not mean construction costs no longer matter. Statistics Canada’s residential building construction price index rose 69.4% from late 2019 to late 2025. It rose a further 2.3% in the year to the second quarter of 2026, although Toronto fell 0.8% from the previous quarter (Building construction price indexes, Q2 2026). Statistics Canada links recent pressure to fuel and transport costs, tariffs and a stretched skilled-trades workforce. Those higher rebuild costs stay in the base that dwelling limits are set from, even when the yearly change flattens.
How much is severe weather costing insurers in Ontario?
The Insurance Bureau of Canada (IBC) reported on October 22 that summer 2026 was the third-costliest summer on record, with more than $3.7 billion in insured damage nationally. Four of the five costliest summers have come in the last six years. Ontario featured repeatedly in 2026:
| Event (2026) | Area | Insured damage (CatIQ estimate) |
|---|---|---|
| Sept 2–3 storms | GTA and southern Ontario | $563 million |
| July 27–28 and Aug 1–3 flooding | Niagara Region (St. Catharines, Niagara-on-the-Lake, Grimsby, Lincoln) | Nearly $360 million |
| Late-March ice storm | Ontario and Quebec | $466 million (combined) |
Sources: IBC releases of Oct 14, 2026, Sept 10, 2026 and Jan 20, 2026.
The long-term trend matters more than any single storm. IBC says average annual insured losses from extreme weather topped $3.7 billion over the last decade, up from $1.4 billion and $883 million in the two decades before. It also reports that flood and water-related insured losses over the last 20 years are more than 300% higher than in the previous two decades.
Insurers also pay more for reinsurance, the insurance they buy to protect themselves against catastrophes. A Statistics Canada analysis found reinsurance renewal rates rose by as much as 25% to 70% in 2023, largely because of 2022’s catastrophes. It warned consumer premiums could keep rising faster than historical averages.
Why did my home insurance go up if I never made a claim?
Because your premium reflects the risk of the whole group you are priced with, not only your own history. When water claims climb across a region, every policy in that region carries some of the cost.
Location is a large part of that. Statistics Canada’s index models price differences by the first three characters of the postal code. That reflects how the market prices risk neighbourhood by neighbourhood, not just city by city. A clean claims history still helps your rate, but it cannot fully offset a rise in your area’s expected losses.
Your own file can also change the price. A renovation, a new endorsement, a higher dwelling limit or a home-based business all affect the premium. FSRA reminds consumers to disclose renovations and home businesses, however small.
Who regulates home insurance rates in Ontario?
Auto and home insurance are regulated differently in Ontario. For auto, the Financial Services Regulatory Authority of Ontario (FSRA) says insurers need the regulator’s approval before changing the rates used to calculate premiums.
FSRA’s property insurance pages describe a different role for home insurance: licensing the people and companies who sell it, enforcing fair conduct and reviewing complaints when an insurer is not following the rules. They describe no rate-approval process like the one for auto. FSRA also notes it cannot force an insurer to sell you a policy or mediate a disputed claim.
The practical takeaway is that prices for the same home can differ between insurers. That is why FSRA’s 2024 home insurance review tells consumers to compare quotes from several insurers, through an agent or broker.
How can you lower home insurance costs in Ontario?
FSRA’s guide to navigating property insurance lists the main levers:
- Compare quotes before you renew. If you plan to switch, FSRA suggests waiting until renewal to avoid a cancellation penalty.
- Consider a higher deductible. A larger deductible may lower the premium. Make sure you could pay it after a loss.
- Bundle home and auto. Some insurers discount when you hold two or more policies with them.
- Ask about discounts. Alarm systems, upgraded smoke and carbon monoxide detectors, and better door locks may qualify.
- Ask what counts as resilience. FSRA suggests asking whether improvements that make your home more resistant to natural disasters qualify for a discount.
- Review coverage every year. Adjust limits and endorsements to your home as it is now, not as it was when you bought the policy.
In Toronto, the city’s Basement Flooding Protection Subsidy Program pays 80% of eligible costs, up to $6,650 per property. That includes up to $1,600 per backwater valve (two devices) and up to $2,250 for a sump pump, for work done on or after November 12, 2025. Owners of single-family homes up to fourplexes must apply within two years of installation. Check your own municipality for similar programs, and ask your insurer whether the work earns a discount.
One caution: don’t drop sewer backup coverage to save money. In a year when Ontario’s costliest summer and fall events were floods, that endorsement is often what pays for a flooded basement.
What should you check on your next home insurance renewal?
Use FSRA’s suggested questions as a checklist before you accept a renewal:
- Does the policy pay replacement cost or actual cash value?
- Am I covered for sewer backup, and to what amount?
- Am I covered for overland water, and what does the policy exclude?
- What are my deductibles, and are premiums billed monthly or annually?
- Do I qualify for any discounts?
- Is my dwelling limit based on today’s rebuild cost? FSRA warns that undervaluing your home or contents can leave you underinsured.
If the answers aren’t clear, or the increase is large, that is the time to have a broker re-market the policy.
How an Ontario broker can help with a higher renewal
A broker can quote your home with several insurers at once, explain why the prices differ and point out coverage gaps before a storm finds them.
Ready to review your renewal? Request a home insurance quote or contact an AAXEL branch. If you’ve already had storm damage this year, read our guide to storm damage insurance claims in Ontario. To check flood risk before you buy, see is your home in a flood zone in Ontario. You can also save by bundling home and auto insurance, and compare coverage on our home insurance page.
Frequently asked questions
Why is home insurance going up in Ontario in 2026?
Mostly because weather claims keep rising and the cost of rebuilding homes rose sharply after 2019. Statistics Canada’s homeowners’ insurance price index rose 4.9% in the year to September 2026, against 3.1% for overall prices. Insurers also pay more for reinsurance after years of large catastrophe losses.
How much has home insurance gone up in Canada?
Statistics Canada reports homeowners’ home and mortgage insurance prices rose 45.0% from December 2019 to December 2025. Overall consumer prices rose 21.0% over the same period. These are national figures; your own increase depends on your home, location and coverage.
Did the 2026 storms affect Ontario home insurance?
They add to the losses insurers price in. IBC and CatIQ estimate the September 2–3 GTA and southern Ontario storms caused $563 million in insured damage, and Niagara Region flooding in July and August caused nearly $360 million. Nationally, summer 2026 was the third-costliest summer on record at more than $3.7 billion.
Why did my home insurance go up when I didn’t make a claim?
Your premium reflects the expected losses of homes like yours in your area, not only your own record. When water and storm claims rise across a region, rates rise for policies there. Changes to your own policy, such as a higher dwelling limit or a new endorsement, can also raise the price.
Does FSRA approve home insurance rates in Ontario?
FSRA says auto insurers need its approval before changing rates. Its consumer pages on property insurance describe licensing, conduct oversight and complaint review, with no comparable rate-approval process for home insurance. FSRA recommends comparing quotes from several insurers.
How can I lower my home insurance premium in Ontario?
FSRA suggests comparing quotes at renewal, considering a higher deductible, bundling home and auto, and asking about discounts for alarms, detectors, locks and disaster-resistant upgrades. Review your coverage every year so you pay only for what fits your home now.
Is it a good idea to cancel sewer backup coverage to save money?
Usually not in Ontario right now. The province’s largest 2026 summer and fall losses came from flooding, and FSRA lists sewer backup coverage, and its limit, among the questions to ask before you buy. Ask your broker what the endorsement costs and what limit fits your basement.
Can a backwater valve lower my home insurance in Ontario?
It may: FSRA suggests asking whether improvements that make your home more resistant to natural disasters qualify for a discount. In Toronto, the city subsidizes 80% of eligible costs, up to $1,600 per backwater valve and $6,650 per property, for work done on or after November 12, 2025.
Should I switch home insurers mid-term?
FSRA suggests waiting until renewal to switch, to avoid a cancellation penalty. Start comparing quotes several weeks before your renewal date so there is time to review coverage, not just price.
Does the CPI home insurance figure show what I will pay?
No. Statistics Canada builds the index from broker quotes for fixed, representative policy profiles across Canada. It shows the market trend for the same coverage, not any individual household’s premium.
Sources
- Statistics Canada, The Daily — Consumer Price Index, September 2026 (October 19, 2026)
- Statistics Canada — Insurance in Canada: What’s driving premiums higher? (June 16, 2026)
- Statistics Canada — Enhancements to the passenger vehicle and homeowners’ home insurance price indexes (April 2025)
- Statistics Canada — Building construction price indexes, second quarter 2026 (July 24, 2026)
- Statistics Canada — Insights into the impact of extreme weather trends on homeowners insurance (May 15, 2024)
- Insurance Bureau of Canada — Summer 2026 third worst on record (October 22, 2026)
- Insurance Bureau of Canada — Early September storms cause $563 million in insured damage (October 14, 2026)
- Insurance Bureau of Canada — Niagara Region flooding causes nearly $360 million in insured damage (September 10, 2026)
- Insurance Bureau of Canada — Severe weather insured losses exceed $2.4 billion in 2025 (January 20, 2026)
- FSRA — How auto insurance rates get approved
- FSRA — Property and other insurance
- FSRA — Helping you navigate property insurance
- FSRA — Home Insurance Thematic Review Report (June 2024)
- City of Toronto — Basement Flooding Protection Subsidy Program
This article is general information about home insurance in Ontario as of October 29, 2026, not advice about your policy. Coverage, discounts and prices vary by insurer and by home. Figures from Statistics Canada are national averages and may not reflect your premium. Speak with a licensed broker about your own situation.
