Get Cheap Home Insurance in Ajax

How home insurance works in Ajax

Sandwiched between Whitby and Pickering, east of Toronto, Ajax is located in Durham Region, and according to the 2021 Canadian census, has a population of 126,666. Given its relatively small size and low crime rates, it has cheaper home insurance than many of its neighbours, including several other Durham towns – but more on that later.

Unlike car insurance, home insurance is not mandated by law in Ontario. However, if you intend to mortgage your home, your lender will most likely ask you to buy home insurance. So, while it’s technically not mandatory, you’ll probably require it anyway.

Types of home insurance in Ajax

There are four standard types of home insurance available in Ajax – though their exact nomenclature differs from insurer to insurer. Here’s what they are:

• Basic: Also known as ‘named perils,’ this option protects your property and its contents only from the perils named in the policy. For instance, fire is listed as a peril, then you’re protected from it. And vice versa. It is the cheapest and most limited option available (if you don’t count the ‘no-frills’ option).
• Broad: This option provides protection for your property against most major perils – aside from the select few that are listed as exclusions. As for your possessions, they are protected from named perils only.
• Comprehensive: Sometimes referred to as ‘all perils,’ this one protects both your property and possessions from most major perils, other than the ones listed as exclusions. In this case, if fire is listed, for example, then you are not covered for it. This is the most expensive option available, and thus, the most comprehensive one, as the name suggests.
• No-frills: This option exists specifically for people whose homes don’t meet typical insurance standards. For example, if the home is old and has an outdated electrical system or structural issues, then it may be too risky to be covered by regular insurance. If you’re mortgaging such a home, then no-frills can be useful here. Don't stick with it though. Address the issues that are holding your home back and get proper coverage.

What home insurance covers in Ajax

Regardless of your coverage, home insurance should always cover the following:

• Property: This includes the home itself and other structures on your property, such as a shed, guest house or a barn. That said, don’t take it for granted that all your structures will be protected. Talk to your insurer to make sure nothing is excluded.
• Contents: This entails the personal possessions found on your property, such as furniture, electronics, clothing and so on. Everything you own should, in theory, should be covered. However, some of your more expensive items, like artwork or jewelry, may not be. Evaluate what you own and discuss with your insurer to make sure you’re fully covered.
• Liability: If someone gets accidentally injured on your property, or you unintentionally damage someone else’s property, then this will cover the potential medical bills, damage repairs and legal repercussions.
• Additional living expenses: If you become temporarily displaced from your home due to a covered peril, then this will cover the costs of living somewhere else, including accommodation and food. Talk to your insurer to find out what’s covered and for how long.

Commonly covered perils

Here are some of the most commonly covered perils by Ajax home insurers:

• Fire: If your home ends up catching fire for one reason or another, this should cover the costs of replacing, rebuilding or repairing your home as well as the cost of recovering your possessions. Check out these tips on how to avoid a home fire in the first place.
• Water damage: If your home or possessions get damaged by water – specifically water coming from indoor plumbing, heating, air conditioning, sprinkler or a similar indoor or outdoor appliance – then this will cover the damage to your home and possessions. Do note, however, that ‘water damage’ often excludes sewer back-up and overland flooding. So, confirm what is and isn’t covered with your insurance provider.
• Lightning: In the event lightning strikes your home and ends up damaging your appliances and electronics, this will pay for replacing or repairing the items in question.
• Theft and vandalism: This will protect you if your home gets either vandalized or robbed. Whatever is damaged will either be rebuilt or repaired and whatever is stolen replaced. Consider taking the following steps to protect your home from theft.
• Hail and wind: If wind or hail damages your home or possessions, this will cover the replacement and repair costs. Damage from flying debris and falling trees and branches is also included (as long as hail or wind is what’s responsible).
• Falling objects: Should your home or possessions end up damaged or lost due to a falling object, such as spacecraft or space debris, this will pay for replacement and/or repairs. This does, however, exclude objects moved by landslides or snowslides, so discuss this with your insurer just in case.

Add-ons to home insurance coverage in Ajax

Certain items won’t be included in your policy, even if you go for comprehensive coverage. If you’re worried that certain perils might affect you, consider adding them to your policy in the form of ‘add-ons’ or ‘endorsements.’ Here are some of the most common ones:

• Overland flooding: This will protect your home and possessions, if they are damaged by overflowing water from a nearby river, lake or stream as well as from thawing snow. Thawing snow and heavy rains have been known to cause floods in Ajax. So, if you live in an at-risk area, consider adding this as an endorsement (if available). In addition, check out these tips on how to protect your basement from flooding.
• Sewer back-up: If your sewage pipes, toilets, drains or shower get backed up, your home may get flooded. This endorsement will pay for the damage, should this occur. Sewer back-ups typically occur when too much rainwater or melted snow enters the sewer system at once. Sewage water can cause illnesses and even death, so consider getting this add-on, if possible.
• Earthquake: Should your property and possessions get damaged or lost due to an earthquake or perils like a landslide, snowslide or volcanic eruption, this will pay for the damage. The likelihood of a severe earthquake in Ajax is very low, so you probably won’t need this.
• Mass evacuations: If you’re forced to evacuate your property due to a flood, wildfire or another major peril, this will cover the cost of your accommodations and food.
• Valuable possessions: If you’ve carefully inventoried and evaluated all your possessions and discovered that some of them may be too expensive to be covered by regular insurance, such as artwork, collectibles and jewelry, then you may need this add-on. Talk to your insurer to learn more.

How much does average home insurance cost in Ajax?

The average home insurance cost in Ajax is estimated to be $1,068 per year, or about 89 per month, according to the RATESDOTCA Insuramap data. This compares favourably to Ajax’s neighbours, which have slightly higher rates. Whitby and Pickering, for instance, have estimated average annual premiums of $1,102 and $1,202, respectively, while Toronto’s estimated average is $1,467.

The premium discrepancy between Ajax, Pickering and Whitby is minor, so it's unlikely to be caused by any major peril. If you look at the Durham Regional Police’s crime map, you’ll see that the numbers of home-related crimes, such as break-ins and theft, in these cities are very similar and relatively low. That’s probably why their average premiums are similar as well. Toronto, on the other hand, has historically had higher crime rates, which explains why its average is quite a bit higher.

All four cities experience comparable weather patterns due to their proximity, but Toronto probably sees a greater number of claims, as it has more old buildings, which tend to cause issues when weather turns extreme or changes drastically over a short time. Either way, Ajax is in a good place for home insurance premiums.

Note that these estimated averages are all based on the profile of a 45-year-old homeowner, who has been insured for at least 10 years and lives in a 2,500 sq ft house with brick veneer, wood frame construction, natural gas heat, a roof that is 10 to 15 years old and has the maximum available coverage for water protection. This means that your own premium will depend heavily on a variety of factors, so take these averages with a grain of salt.

Cheapest home insurance in Ajax

According to the RATESDOTCA Insuramap data, areas with the cheapest home insurance have postal codes starting with L1T and L1Z, which have the average annual rate of $1,050 – slightly below the city average of $1,068. Durham’s police’s crime map indicates that the areas in question have lower instances of theft, break-ins and similar home-related crimes, as they are less densely populated and more suburban in nature.

The more expensive premiums are in neighbourhoods with postal codes that start with L1S. They are estimated to be around $1,104 per year. These neighbourhoods are nearer to the city core, which means they have denser population and higher crime rates.

Top home insurance companies in Ajax