Get Cheap Home Insurance in Etobicoke

How home insurance works in Etobicoke

If you’re buying a home in Etobicoke, or anywhere else in Toronto, or Ontario, you’re probably going to need home insurance. While it’s not legally mandatory (unlike a certain other insurance type), it’s often required by mortgage lenders, which makes it more or less mandatory anyway. Lenders require it because they want you to keep paying your mortgage even if your home gets damaged. It’s an easy way for them to protect their investment. Home insurance also protects you, so in a way, it's a win-win for both.

Given that your home is likely to be your most expensive purchase, you should know what your insurance will cover, in case something happens. Here are the basics:

• Property: This includes the house itself as well as the surrounding land and any buildings on it, such as your garage.
• Contents: This covers your possessions. Should you lose some or all of them (as a result of a covered peril), they will get replaced. Do note that the more expensive possessions, such as jewelry or collectibles, may need extra coverage due to their higher value.
• Liability: Should someone get injured (or worse) on your property and decide to sue you as a result, this will cover the costs. This will also cover you if you unintentionally damage someone else’s property. Very handy to have.
• Additional living expenses: What if your home becomes unlivable due to a particular peril? You’d have to live somewhere else, of course. This will cover the expenses of doing so, including accommodation and food. Talk to your insurer to find out exactly what’s covered.

Home insurance policy types

There are multiple insurance policy types, ranging from the ones that cover the bare minimum to the ones that cover almost everything. Your choice will primarily depend on how much you want (or can) pay in premiums.

Here are all the insurance types:

• Basic: Also referred to as ‘named perils,’ this will protect you against the perils explicitly listed, or ‘named,’ in your policy. If a peril is not named, then you’re not covered for it. As the name suggests, this is the most basic coverage you can get.
• Broad: This one protects you from all perils, aside from the ones listed as exclusions. It also covers your possessions, though only against named perils, similarly to basic insurance.
• Comprehensive: Also known as ‘all perils,’ this one covers both your property and its contents, protecting them against all perils, except for certain named exclusions.
• No-frills: No-frills is similar to basic coverage, in that it covers only the bare minimum. The difference is that no-frills is meant for homes that don’t meet typical home insurance standards. This includes homes with issues that are highly likely to cause damage down the road, such as brittle pipes, for example. If you end up going with no-frills, make sure to address those issues, so you can switch to better coverage (and protect your property more thoroughly).

Commonly covered perils

Realistically, there’s an infinite amount of perils that may endanger your home, and insurers, being human, can’t cover them all (for instance, a comet crushing your home probably won’t be covered by anyone). However, some perils are more common than others, and as such, they are the most likely ones to be covered by default. Here’s what they are:

• Fire and smoke
• Explosion
• Lightning
• Theft and vandalism
• Aircraft or vehicle impact
• Water damage (excludes flooding)
• Wind
• Falling objects (excludes objects moved by snowslide, mudslide or earthquake)
• Window breakage

Extra coverage

Since not even a comprehensive policy will cover everything, you may consider purchasing add-ons, or ‘endorsements,’ to cover certain exclusions. Here are some of the most common ones:

• Overland flooding: Believe it or not, most policies actually overlook overland flooding – flooding that occurs when rivers, lakes and other bodies of water flow out of their bounds. In Etobicoke, Etobicoke Creek and Humber River are known to cause riverine floods, on occasion, so there may be some risk to your property if you’re close by. That said, the likelihood of your Etobicoke property being affected by this is low.
• Sewer back-up: The more likely kind of flooding to occur in your Etobicoke home is due to backed up sewage pipes, toilets, drains or showers. This is more common in Etobicoke than you might expect – mainly due to the area’s aging sewage systems.
• Earthquake: Earthquakes and other types of ‘earth-based’ perils, like landslides, snowslides and volcanic eruptions, also tend to get overlooked by most insurance policies. Fortunately, Etobicoke is safe in this department, even though earthquakes do sometimes occur here (often causing minimal damage). If you’re concerned, talk to your insurer.
• Windstorm: Windstorms are also quite common in Etobicoke. This endorsement will protect your home if a windstorm damages the home’s structure, breaks its windows, destroys your possessions or showers your home in debris. Your current policy may already cover this, so confirm with your insurer.
• Valuable items: Your jewelry, collectibles, artwork and similar expensive items may need extra coverage. This endorsement will provide that. Do note that you may not need this – so be sure to properly evaluate all your possessions before purchasing this.

How much does average home insurance cost in Etobicoke?

The average home insurance cost in Etobicoke is $1,469 per year, according to the RATESDOTCA Insuramap data.

Though Etobicoke is relatively safe from major perils such as earthquakes, wildfires and overland flooding (for the most part), it does get affected by things like sewer drain back-ups, windstorms and severe winter weather. The latter can cause damage to your roof, pipes and overall structure of the home, resulting in leaks, floods and other water-related damage.

That said, Etobicoke doesn’t have the most expensive home insurance in Ontario. In fact, its average premium sits comfortably in the middle. The most expensive Ontario city for home insurance is actually LaSalle, which has the average annual rate of $2,411. The cheapest one is Ajax, with the average annual rate of $1,068. Etobicoke’s average is very comparable to Toronto’s, however, which sits at $1,467 per year. (Note that Toronto’s average excludes areas like Etobicoke and North York, which are counted as separate cities, even though they’re technically part of Toronto.)

How does home insurance in Etobicoke compare to the Greater Toronto Area?

Average insurance premium numbers are according to data from RATESDOTCA Insuramap (gathered in 2022).

Top home insurance companies in Etobicoke