How much does home insurance cost in Canada per year?

The national average is roughly $1,340 per year in 2026, but it ranges widely by province. Quebec and PEI tend to be the most affordable (around $850–$950), while Alberta and British Columbia are among the most expensive (often $1,500–$1,800 or more). Your actual rate depends on rebuild cost, location, and coverage.

Is home insurance mandatory in Canada?

No, home insurance is not legally required anywhere in Canada. However, mortgage lenders almost always require proof of coverage as a condition of approving and maintaining your loan. Even if you own your home outright, going without coverage leaves you exposed to large losses.

Does standard home insurance cover floods in Canada?

Not by default. Standard policies exclude overland flooding from rivers, heavy rain runoff, and snowmelt. You need to add overland water coverage, and sewer backup is a separate endorsement as well. Availability and pricing depend on your property's flood risk.

Why is home insurance so expensive in Alberta and BC?

Both provinces face elevated natural-catastrophe risk. Alberta sees frequent hail, wildfire, and flooding, while British Columbia carries wildfire and earthquake exposure plus high rebuild costs in cities like Vancouver. These risks, combined with rising climate-related claims, push premiums above the national average.

How can I lower my home insurance premium?

Bundle home and auto with one insurer, raise your deductible, and install a professionally monitored alarm. Staying claims-free for several years and upgrading aging roofs, wiring, or oil tanks also helps. Comparing quotes from multiple insurers each year can reveal meaningful savings for the same coverage.

Home Insurance Costs in Canada by Province (2026)

Home insurance protects what is, for most Canadians, their single largest asset. Yet what you pay varies widely depending on where you live, what your home is worth to rebuild, and the risks in your area. Across the country, the national average home insurance premium sits at roughly $1,340 per year in 2026, but that figure hides a large gap: homeowners in British Columbia and Alberta often pay far more than those in Quebec or the Maritimes, largely because of wildfire, hail, and flood exposure.

This guide breaks down average costs by province, explains what a standard policy covers, flags the gaps you may need to fill with add-ons, and shows what drives your premium up or down. One important note up front: home insurance is not legally required in Canada, but virtually every mortgage lender will require it as a condition of your loan.

Average home insurance cost by province (2026)

The figures below are approximate annual premiums for a typical detached home and will vary by city, home value, coverage limits, and claims history. Use them as ballpark comparisons rather than quotes. Costs have been rising: industry data showed Canadian home and mortgage insurance rates up roughly 5.7% year over year in early 2026, with Alberta, Nova Scotia, and Newfoundland seeing double-digit increases.

Alberta: approximately $1,750/year — among the highest, driven by hail, wildfire, and flood risk
British Columbia: approximately $1,500/year, though Greater Vancouver homes routinely exceed $1,800
Saskatchewan: approximately $1,400/year
Ontario: approximately $1,350/year (often $1,400–$2,400 for detached urban homes)
Manitoba: approximately $1,200/year
Nova Scotia: approximately $1,100/year
New Brunswick: approximately $1,050/year
Newfoundland and Labrador: approximately $1,000/year
Prince Edward Island: approximately $950/year
Quebec: approximately $850/year — typically the most affordable, thanks to a lower severe-weather profile

The gap between the cheapest and most expensive provinces can exceed $1,000 a year for similar coverage. Within a province, urban centres and high wildfire- or flood-exposed areas push premiums higher still.

What a standard home insurance policy covers

A typical Canadian homeowner policy bundles several core protections. While exact wording varies by insurer, most standard policies include the following.

Dwelling (building) coverage — the cost to repair or rebuild your home's structure after a covered loss such as fire
Contents (personal property) — furniture, electronics, clothing, and belongings, usually up to a percentage of the dwelling limit
Personal liability — protection if someone is injured on your property or you accidentally damage someone else's property
Additional living expenses (ALE) — hotel, meals, and other costs if your home becomes uninhabitable after a covered loss

Most policies also cover indirect damage from a peril even when the peril itself is excluded — for example, fire, smoke, or an explosion that follows an earthquake is often covered, even though the quake's shaking damage is not.

What is NOT covered by default — important add-ons

Several of the costliest and fastest-growing risks in Canada are excluded from a standard policy and require separate endorsements (also called riders). With climate-related claims rising, these add-ons are increasingly worth considering.

Overland water / flood

Standard policies do not cover overland flooding — water entering your home from rising rivers, heavy rainfall runoff, or spring snowmelt. Overland water coverage is a separate add-on, and availability and price depend heavily on your property's flood risk.

Sewer backup

If sewage or water backs up through floor drains, toilets, or sinks into your basement, a standard policy won't pay. Sewer backup coverage is usually an affordable endorsement and is a smart buy for homes with finished basements.

Earthquake

Earthquake shaking damage is excluded from most policies and must be added as an earthquake endorsement. This matters most in higher-risk zones — notably coastal British Columbia and parts of Quebec — where take-up is strongly recommended.

What affects your premium

Insurers price your policy on the likelihood and potential cost of a claim. Key factors include:

Rebuild cost and home value — the higher the cost to reconstruct your home, the higher the premium (this is not the same as market value)
Location — proximity to a fire hall, crime rates, and exposure to wildfire, hail, or flooding
Claims history — past claims, especially water claims, can raise rates or cost you discounts
Roof age and condition — older roofs may be only partially covered or attract higher premiums
Heating type — oil heating is riskier and more costly to insure (aging or buried oil tanks are flagged as environmental hazards); wood stoves can add roughly 10% or $100+ and often require a WETT certificate
Home age and systems — knob-and-tube or aluminum wiring and galvanized plumbing raise risk and cost

How to lower your home insurance premium

You have more control over your premium than you might think. Common, proven ways to save include:

Bundle home and auto with one insurer — multi-policy discounts of roughly 10–15% are common
Raise your deductible — moving from $500 to $1,000 or $2,500 lowers your premium (only if you can comfortably cover it)
Install a monitored alarm — a professionally monitored, ULC-certified system can save roughly 5–20%
Stay claims-free — many insurers offer 5–15% off after several claims-free years; avoid filing small claims that erode this
Upgrade aging systems — replacing an old roof, knob-and-tube wiring, or an oil tank reduces both risk and cost
Shop and compare annually — premiums vary significantly between insurers for identical coverage

Because home insurance is YMYL territory and rates shift with the market and climate, treat the figures here as current 2026 estimates and always confirm coverage details and pricing with a licensed broker or insurer before deciding.

Related guides on Experts.ca

Comparing coverage? Explore related Canadian insurance guides on Experts.ca:

Home Insurance in Canada: Average Costs by Province