Average Cost of Home Insurance in London Ontario



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Many home and property owners in London Ontario chose not to insure their homes, mainly because home insurance in London and other Ontario cities, is not a legal requirement. Home insurance protects the home and personal belongings of the homeowner against insurable risks.

A lot of situations and events can lead to damage or loss of the home and its contents. These unforeseen circumstances can sometimes be emotionally and financially devastating to the homeowner.

With proper home insurance coverage, whenever there is a loss or damage to the home and its contents, the cost of repair, rebuild, or replacement of the properties to its original state is the responsibility of the insurance company. The insurer takes care of the risks, while the homeowner enjoys the coverage of their home.

The right home insurance coverage allows the homeowner to restore the home and personal belongings with ease, in the event of an unfortunate event or natural disaster.

Ensuring that your home and possessions are properly protected is a wise financial decision. The home is one of the most priced investments for every homeowner. Hence, the need to protect it.

Home insurance in London gives the homeowner peace of mind, as the properties are well guarded against insurable risks such as fire, theft, vandalism, lightning, and more.

Although home insurance is not mandatory unlike car insurance, it is often recommended for all home and property owners to insure their homes with a standard home insurance policy against perils. However, homeowners who owe a mortgage on their homes are required by lending institutions to obtain proper home insurance coverage on their properties.

Regardless of mortgage or not, it is important for every home and property owner in London to protect their properties with the right home insurance coverage. Every homeowner has unique coverage needs, and each insurance provider has the responsibility to understand these needs and provide the coverage options that will suit the homeowner or policyholder.

Therefore, it is essential for home and property owners to align with the services of an accredited insurance provider. It is equally important to understand how home insurance works in London, and the coverage options available to homeowners in the city.

This page is dedicated to providing you with an explicit review of the London home insurance industry, the factors that affect home insurance rates, and useful tips to help you get the best and most affordable insurance policy.

About London

London is a Canadian city located along the Windsor-Quebec city corridor, in the southwestern part of the Ontario province. The city of London was established in 1826 and is famously known as ‘The Forest City’ because of the abundance of thick forest and woodlands.

London is one of the largest municipalities in Ontario, sitting halfway between Toronto (Ontario) and Detroit (Michigan). As a result, the city’s strategic location enjoys good connectivity with other major cities, such as Toronto, Sarnia, and Windsor through major highways including Highway 401 and 402.

With a population of close to 400 thousand residents (383,822 as of the 2016 census data), London attracts people from all walks of life. This is evident in its thriving tourism industry, festivals, and museums. The city of London is also a hub for education, healthcare, information technology, and family entertainment.

Living in London

London (Ontario) has one of the poorest rankings in terms of safe neighborhoods in Canada. However, the city recently has attracted a growing population of people for its green parks, economic development, educational advancement, and other attractive sites.

The city of London has a total land area of 420.57 square kilometers. London has a relatively lower cost of living, compared to other Ontario cities. The cost of living in London is about 23 percent cheaper than in Toronto. On a national scale, the cost of living in London is about 2 percent higher than the national average.

A family of four in London has an estimated monthly cost of $4,553 while a single person’s estimated monthly cost is put at $2,200. House price in London indicates an average home price of $484,884.

London Home Insurance Overview

For most homeowners, the home is possibly the greatest and most valuable possession. Such a big investment requires proper protection from danger. A home insurance policy in London protects your home, personal belongings, and your family against insurable risks.

With proper home insurance coverage, the cost of repair or replacement of lost or damaged properties is taken care of by the insurance provider. Depending on a. number of factors, such as the type of policy coverage chosen by a homeowner, standard home insurance in London covers the financial implication of the repair, rebuild, or replacement of your home and possessions, as well as legal claims.

There are several reasons for having a home insurance policy. Every homeowner has different coverage needs, and risks are calculated in diverse ways. If you lose your home to a natural disaster or other unforeseen circumstances, the cost of rebuild or repair might be too expensive for you. Likewise, you can be sued for unintentional bodily injury or property damage caused by you to another person. Your home insurance policy takes care of the legal representation fees.

Home insurance is not mandatory in London as well as other Ontario cities, except for homeowners who owe mortgage on their properties. Lenders usually require a good home insurance policy as a prerequisite for the mortgage. Regardless, a home insurance policy in London covers your home, other detached structures, your personal belongings, and other liability claims.

Apart from the fact that home insurance is not mandatory, one of the reasons affecting low coverage among homeowners is the cost of home insurance. A lot of homeowners do not have a proper understanding of their coverage needs, and how to get a reduced premium. Hence, they jump at the first insurance company or broker that comes.

It is important to understand that home insurance rates vary significantly in hundreds and thousands of dollars between insurance providers, and is determined by several factors including the replacement cost of the home. Insurers consider risks differently. What is considered as high risk by an insurer, might be of lower risk to another insurance provider. Hence, there is a need for homeowners to compare rates from different insurance providers to get the best and most affordable rates available.

Home insurance coverage and policies are of different types. It is essential for every homeowner to work with their home insurance agents to ascertain the types of coverage needed on the home.

Home insurance is an agreement or contract between an insurance company (insurer) and a homeowner (the insured or policyholder). Under this arrangement, the insured (homeowner) agrees to make periodic payments, known as premiums, either monthly or annually in exchange for coverage on his or her home and personal belongings.

As a result, the insurance provider will cover the cost of repair, rebuild, or replacement of the home and its contents if there is a loss or damage to the properties. Thus, in the event of a loss or damage caused by an insured peril, the insurer will indemnify the homeowner.

Independent insurance companies, agencies, and brokers provide home insurance services in London. These insurance providers are monitored and regulated by the provincial government, as well as independent bodies, such as the Financial Services Regulatory Authority of Ontario (FSRA). Besides, the Registered Insurance Brokers of Ontario (RIBO) and the Insurance Bureau of Canada (IBC) play a supervisory and regulatory role on home insurance providers.

Cost of Home Insurance in London

The average home insurance cost in London is about $1,490 per annum. This average to about $124 per month.

The price of home insurance in London is flexible among insurers. These rates are determined by several factors including the replacement value of the home, the location and type of the property, and the number of deductibles. Hence, some homeowners pay higher than this average, while some may see their rates significantly lower than others.

Square One offers some of the cheapest and most comprehensive home insurance policies.

Types of Home Insurance Policies in London

Comprehensive Home Insurance Policy

Also known as All-Risk insurance policy, this policy is the most extensive of all the home insurance policy types. Comprehensive insurance covers the structure of your home and your personal belongings against all perils, except for perils that are specifically excluded from the policy, such as overland flooding, earthquakes, and more.

Basic or Named Perils Home Insurance Policy

The named perils policy provides the cheapest option with minimal coverage. It only protects against perils that are specifically named in the purchased policy.

Broad Home Insurance Policy

The broad home insurance policy is a mid-priced policy that combines the comprehensive policy and the basic policy. Under this policy, the home (structure) is covered against all perils while your contents are only protected against named perils.

No Frills Home Insurance Policy

The no-frills policy coverage is designed for homes or properties that do not meet the normal insurance standards. Examples are homes with major structural issues.

What Does Home Insurance Cover in London?

Standard home insurance covers the following:

  • Coverage for your dwelling, including the house and other detached structures
  • Coverage for your home contents, especially personal belongings, such as electronics, furniture, etc.
  • Coverage for additional living expenses, for the period that you have to stay away from home due to repairs.
  • Coverage against lawsuits, as a result of unintentional bodily injury or property damage done to others.

Factors That Determine Home Insurance Rates

  • The location of the house.
  • The type and size of the home.
  • The replacement value of the home.
  • The distance of the home from fire hydrants.
  • The quality of construction and other fittings.
  • The age of the roof.
  • The amount of deductible chosen by the homeowner.
  • The types of coverage chosen by the homeowner.

Saving Tips for London Home Insurance

  • Shop and compare rates from different insurers.
  • Increase your home insurance deductibles.
  • Choose only the coverage options you need.
  • Bundle your home and auto insurance policies.
  • Ask for discounts from your insurance provider.

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Odeyemi O.


Avid researcher, freelance writer, and personal finance enthusiast passionate about financial education and literacy.

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Kareena Maya

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Kareena Maya is a freelance writer focused on the personal finance and travel spaces. He frequently writes about credit cards, banking, student loans, insurance, travel rewards and more. His work has been featured in publications such as Forbes Advisor, Bankrate, Credit Karma, Finance Buzz, The Ascent and Student Loan Planner.

Kareena Maya is a freelance writer focused on the personal finance and travel spaces. He frequently writes about credit cards, banking, student loans, insurance, travel rewards and more. His work has been featured in publications such as Forbes Advisor, Bankrate, Credit Karma, Finance Buzz, The Ascent and Student Loan Planner.