How home insurance works
Getting a great rate on home insurance requires two things: first, you need to know what coverage you need and what you can do without, and second, you need to know how to get quotes from a wide range of home insurance providers.
To assist you in that process, we’ve taken a look at the most popular home insurance companies in Canada along with which of their products and services have helped make them so.
How our ranking works
We work with the best home insurance companies in Canada, and describe many of them below.
We do so to ensure that you can be confident that whatever policy you end up with is from a reputable provider with products that will serve you well.
Our findings reflect the average responses of LowestRates.ca users in 2021, who used our quote tool, selected one of the quotes they received and connected with a broker to secure the associated policy. These users did not know the name of the home insurance company, just the rate.
While they provide helpful context for when you’re deciding on which provider to take a home insurance policy with, your individual profile is the single most significant factor in determining your rate.
In other words, regardless of what others say about which companies offer the best home insurance in Canada, ultimately, it’s the details of your unique profile – including the coverage type you seek, the type of property you’re insuring and your personal details – that are going to nudge your costs in one direction or another.
The top five home insurance companies in Canada
What does it take to become one of the top rated home insurance companies in Canada? Our rankings suggest that the five companies listed below have a strong sense.
In 2021, LowestRates.ca users identified the following as their insurance provider of choice:
- Economical Mutual
- Intact Insurance
- Square One Insurance
About the top three
1. Economical Mutual
Economical is one of the oldest insurance companies in Canada, established in 1871. It offers a range of insurance types including coverage for cars, homes, business liability and insurance for hobby farms.
The company champions its customer service focus, noting that it has more than 600 claims professionals available to policyholders on a 24 hour/day basis.
If you have a home insurance policy with Economical, you may be eligible for unique discounts including those available to policyholders who have never made a claim or are mortgage free.
Aviva is one of the largest insurance providers for homes in Canada with policies for more than 860,000 homes across the country, including each province and territory.
In addition to its reach, including customers it picked up when it acquired RBC General Insurance Company in 2016, Aviva has a global footprint with more than 33 million customers worldwide.
Some unique advantages offered the Aviva policyholders include discounts for being a non-smoker, owning a newer home and for being mortgage-free. Discounts are also available to Aviva customers who want to better protect their homes, and those inclined toward energy efficient upgrades.
Aviva also has some special programs that help set them apart. For example, you may be eligible for claim-free status after your first claim and/or have the option to reduce your deductible every year that passes without a claim. As Aviva refers to it, you can have a ‘disappearing deductible.’
CAA, originally known as the Canadian Automobile Association, offers policies for many home types – including houses, rentals and condos.
LowestRates.ca users have named CAA as one of the best canadian home insurance companies in large part because of its competitive premiums.
If you have a CAA home insurance policy, you’ll also have unlimited calls to its robust helpline system which offers support for all health, pet health, legal matters, identity theft, home maintenance questions.
See below for a more extensive look at how LowestRates.ca users across Canada believe major home insurance companies compare – one to the other.
The best home insurance companies by province
Ontario’s best home insurance companies
|Square One Insurance||A|
Alberta’s best home insurance companies
British Columbia’s best home insurance companies
While having a solid grasp on who’s regarded among the best Canadian home insurance companies is an important first step, understanding how to reduce the overall cost of your policy is as important
The trick to securing a great home insurance rate lies as much in comparison shopping as it does in customizing your policy.
You’ll want to tailor yours so that it aligns with your lifestyle and to make certain that you’re only paying for the coverage you need.
When assessing an applicant, house insurance companies are trying to gauge what sort of risk they represent. For example, how likely are they to make a claim and what sort of claim could they make?
Providers will be trying to gain insight on three core aspects of your application: Coverage type, property type and you, the homeowner.
To make sure you get the best house insurance in Canada, at the lowest rate, there are a number of steps you can take, in addition to comparison shopping:
Know what sort of coverage you need – When it comes to home insurance there are three main types to choose from:
- Comprehensive insurance – The most popular home insurance. It covers you against all perils to your home and to your contents.
- Broad insurance – Also very popular, particularly among homeowners less interested in protecting their contents. It covers you against all perils to your home and against specified perils to your contents.
- Basic insurance – A coverage type that will protect you against specified perils to your home and for specified perils against its contents.
The more coverage you have, the more you can expect to pay.
If you’re unsure of what coverage type makes the most sense for your lifestyle, connect with a broker for free recommendations.
In general, if you’re less concerned about protecting the contents of your home, you’ll likely be content with a broad insurance policy which only covers your contents against specified perils.
Keep your home in good working order – Regardless of which homeowners insurance companies you’re considering taking a policy with, your rates are likely to higher if your home is in disrepair.
Conversely, if you’ve kept up on the maintenance of your home, you could be well-positioned for savings. The best homeowners insurance providers are likely to reward you with a good rate when they have no trouble confirming that you’re a low risk.
For example, a home with a roof that hasn’t been replaced in forty years is more likely to leak and cause water damage than a home with a new roof. As a result, premiums on the former are likely to be higher.
Fine-tune your appeal as a policyholder – When you’re trying to secure a great rate, consider how you can seem like a more appealing customer.
For example, consider bundling your policies so that each is held by a single company. Or, elect to pay your annual costs in full rather than monthly. Anything you do to reflect to a provider that you’re a low risk is likely to result in cost savings for you.
If you’re curious about how to fine-tune your policy so that the best homeowners insurance providers want your business, get free advice from a licensed broker.
Work with a broker – At LowestRates.ca, you have easy access to the best home insurance brokers in Canada by virtue of having used our free, online quote tool.
Once you’ve received quotes, expect a call from a broker who will answer all of your questions and point out how you can save.
You’ll be able to learn a lot about the coverage you’re considering. Our recommendations are free, so it’s a win-win for you in that you’re under no obligation to purchase a policy regardless of what you discuss with the broker.
Do your research – While a broker will advise on the best available policies, it never hurts to research the provider your considering taking a policy with.
Consider checking out online reviews for home insurance companies across Canada. While online reviews in general can be biased, they occasionally reference special programs that may interest you. Online reviews will also help you gauge how responsive a company’s customer service team is.
You’ll be able to gauge their customer service track record as well as discover discount options and endorsements worth asking a broker more about.
Securing the best home insurance coverage at the lowest rate is easy when you understand what’s available and what variables insurance companies are considering when setting a rate.
At LowestRates.ca, we’ve streamlined the process for you so that you can find the best home insurance companies online, in a single location.
You’re in good hands here: we compare rates for you in less than three minutes and then connect you with the top homeowners insurance brokers in Canada, for free.
To start saving, get a quote today.
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About the author
Katie Rook is a writer based in Toronto, Ont. She has been a full-time reporter at CTV, National Post and Globe and Mail. Her work has also appeared in Dow Jones’ MarketWatch, Toronto Star, Toronto Life, Saint John Telegraph-Journal and VICE. Katie is a graduate of Ryerson and Dalhousie universities.