The Best Home Insurance Companies in CanadaNovember 24, 2022
When looking to get home insurance in Canada, there are so many different options to choose from. In some provinces all of the rates are relatively the same, in other provinces it pays to shop around to get the best rates. That being said, whether the price is relative or not, it is important to find a home insurance company that works for you. For many people the service makes all the difference. While you may not ever have to file a home insurance claim, if you do you want to make sure that you are dealing with a reputable company that can help you if you need them.
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Average Cost of Home Insurance in Canada
In Canada, the average cost of home insurance in Canada is $960.00 annually or around $80 per month. While this is a pretty high cost added to your monthly expense, you may wonder if this is a necessary expense and the short answer is yes. The long answer is that, with most Canadian mortgage companies, home insurance is required. It is there in case there is significant damage to the home from uncontrollable circumstances like storms or broken hot water tanks. What it covers is really based on your insurance policy but it can also cover your contents not just the home itself.
While $960 a year is the average, home insurance can be more or less depending on the type of home you own, the size of the home as well as where you live. The location of your home will also depend on what coverages you are covered for. For example : if you live on a flood plain it is unlikely that your home insurance will cover flooding. For this reason, it is important to take a look at your home insurance policy and speak to different providers before making your decision.
How Home Insurance Companies are Ranked
When home insurance providers are rated, it is based on customer satisfaction. J.D Power is who ranks the companies and they base it off of customer satisfaction in a few specific areas. By basing their ratings off of customers directly, J.D. Power is getting a more accurate representation of what actually makes customers happy and what areas are needing improvement. The areas they look at specifically are:
- Interactions that aren’t related to claims
- Policy Pricing
- Types of policies offered
- Billing and Payments
- Local brokers
- Call Center Representatives
Taking these factors into consideration as well as overall customer satisfaction, you get a list of some of the best home insurance agencies in Canada. Not only are these rated as the best in Canada, but they are also broken down into the best per region and/ province/territory. Because these ratings are based on customer satisfaction, they are a great tool when looking into what company is the best fit for you.
Top Rated Home Insurance Companies
While there are plenty of home insurance companies in Canada, let’s take a look at the top home insurance companies and what makes them stand out from the others.
Intact Financial Corporation
This company is considered to be the largest provider of home insurance in Canada. They operate as Intact Insurance in Canada, but have different subsidiaries throughout the world. They have grown organically over the years to over $20 billion of total annual premiums.
The packages offered by Intact ultimately depend on your situation and where you live. There are different options available for each province but it is available all over Canada.
In Canada, On Side Restoration is a subsidiary of Intact Insurance as well. This restoration company repairs and restores residential and commercial properties.
Aviva Canada Inc
Just like Intact insurance, Aviva is available all over Canada but they are considered to be the best insurance company in Ontario. They offer many different types of insurance including home and auto insurance. They have also won many awards. In 2021, they were named the Toronto Star’s Readers Choice Best Insurance Company as well as the Best Insurance Company for Home and Auto Insurance. They also were awarded the 2021 P&C Insurer of the Year by the Insurance Business Canada Awards as well as the IBC 5-Star Construction Insurance Award. They are considered to be the top home insurance company in BC.
Desjardins General Insurance Group
Desjardins is another company in Canada that offers multiple different types of insurance. They are considered to be the leading financial co-operative in North America. On top of that, they are one of Canada’s leading property and casualty insurance providers. They have exclusive advantages for their members who are 25 and under and are one of the leading home and auto insurers in Quebec.
RSA Canada Group
RSA Canada Group is not only a reputable home insurance company but they are also a subsidiary of Intact Financial Corporation. RSA Canada works with many insurance brokers throughout Canada and 90% of Canadian brokers polled in 202 said that RSA’s coverage was either in line with or ahead of their competition. Out of all of the provinces in Canada, RSA is top ranked in Alberta along with Co-Operators.
Co-Operators General Insurance Corp
Co-Operators General Insurance Corporation is another well known insurance company in Canada. They are most popular in Atlantic Canada, Ontario and Alberta. According to J.D Power they are rated number one in customer satisfaction and they have competitive rates. Not only do they offer home insurance, they also offer life insurance, farm insurance, car insurance, business insurance and travel insurance.
Economical Insurance is a Canadian company established in 1871, and is considered to be one of the oldest insurance companies in Canada. Like most insurance companies they offer many different kinds of policies and are available for claims 24/7. With home insurance, they also offer some perks and discounts for homeowners who either don’t have a mortgage or haven’t made a claim before.
While the CAA is mostly recognized for their auto insurance, they also offer many other types of insurance like home and rental insurance. They are also known for being one of the top home insurance companies in Canada. This is because they offer competitive premiums. These premiums include access to a helpline system that can help you with support for all types of things such as:
- Home maintenance issues
- Legal matters
This is just an example, there are many other things that this helpline covers as well. On top of that they have discounts for being over 45 years old (10%), having a monitored alarm system (5-15%), and for being mortgage free (5-15%).
How to Pick the Best Home Insurance
While there are plenty of top rated insurance companies, there are also plenty of others that don’t even make the ranking. That doesn’t mean they aren’t good, it just means they either aren’t well known or didn’t meet the average consumer’s specific criteria.
Labeling the worst home insurance company is difficult, this is why it is important for you to do your homework when deciding what home insurance company you wish to deal with.
Know What Coverage you Need
There are three main types of home insurance coverage to choose from: comprehensive, basic and broad. Comprehensive insurance covers everything for your home and contents. This is the most popular choice for home insurance. Basic insurance covers both your home and contents as well but the conditions are more specific. You aren’t covered for everything. Broad insurance, however, covers the home but has specific conditions when it comes to your contents.
The type of home insurance that you choose will make a difference in what the cost will be. This can be a difficult decision to make so discussing it with an insurance broker can help. It is important to keep in mind that just because comprehensive insurance is the most popular, that doesn’t mean that it is the right choice for you.
Maintaining your Home
The more maintained you keep your home, the lower your home insurance premiums are likely to be. This, like new roofs and keeping up on updates make you a lower risk to insurance companies. The lower risk you are, the less your premiums are likely to be.
Use an Insurance Broker
Not only will an insurance broker help you choose the best policy, they can explain it to you and help you save. A broker can also help with things like bunding all of your insurance with one company to save money as well as any adjustment that you may need to your policy. A broker can also ensure that, not only are you getting the best price, you are also only paying for what you need and there are no extra fees that you don’t need to pay.
You can also use a broker to help you compare prices. That being said, while a broker can help find you the best price, do your own research as well on customer service and the ease of filing a claim. If you ever have to file a claim you want to be able to rely on the company as well, not just the low premiums.
Overall, finding the right home insurance company can be a difficult process. There are so many companies to choose from as well as other factors to consider such as where you live, what coverage you are looking for and what companies operate in your province or territory. It is also important to keep in mind whether you are going to pay your insurance in installments or pay it upfront. Some companies offer a discount for paying in full, others offer discounts for other reasons.
When choosing the insurance company you are going to use, be sure to look up customer reviews and not just for the lowest premiums. A company with a good reputation and customer service focus can make a huge difference if you are ever in need of making a claim. Take a look and see if they offer any discounts that may apply to you or any perks that you can take advantage of. No matter which home insurance provider you choose, do your research and make an informed decision on what is best for you.