Home insurance renewal increases can be frustrating, especially when you have never made a claim. Your claims history matters, but it is only one part of how a home is priced.
Severe weather, rebuilding costs, local risks and changes in coverage can all affect the price. Here is how to read the recent numbers and what to check at renewal.
What the long-term figures actually measure
In its June 16, 2026 analysis, Statistics Canada reported the following increases in the homeowners' home and mortgage insurance Consumer Price Index, from December 2005 to December 2025:
- Canada: 174.4%.
- Ontario: 185.3%.
- Alberta: 391.6%.
An increase of 391.6% means the index ended at approximately 4.916 times its starting level. It does not mean every Alberta homeowner's premium rose by that amount.
The figures measure changes in a defined CPI category across time. They are not a quote for a particular property or a promise about your next renewal. For December 2020 to December 2025, the same index rose 38.6% nationally and 55.8% in Alberta. Source: Statistics Canada
Why weather losses can affect a claim-free homeowner
A severe storm can generate many claims at once. Insurers then face repair and rebuilding costs, demands on available contractors and materials, and changing expectations about future losses.
A property's location and exposure matter alongside its individual history. Flooding, sewer backup, hail, wind, wildfire, the condition of the building and access to fire protection can all contribute to risk assessment.
A hypothetical example: if a neighbourhood experiences repeated basement floods or hail losses, an insurer may reassess its exposure there. A household that has never claimed could still see a different renewal price. The outcome is not identical for every insurer or every property.
Statistics Canada's analysis identifies severe weather as an increasingly important cost driver alongside rebuilding inputs and wages. It does not attribute every price increase to weather alone.
Ontario's 2026 figures are modelled quotes
Rates.ca's June 16, 2026 Home Insuramap report gives an estimated Ontario annual premium of $2,235, a 6.2% year-over-year increase. Estimated premiums increased in 157 communities, or 82.2% of the cities included in its report. Source: Rates.ca report
These are not the average amounts actually paid by every Ontario homeowner. Rates.ca uses a standardized homeowner and property profile and averages the lowest three quoted premiums for each postal area, with geographic weighting. Its example profile includes a homeowner in their 40s and a 2,500-square-foot detached home. Your property, coverage and claims history may produce a very different quote. Source: Rates.ca methodology
The report is useful for comparing broad patterns. It should not be used as a price guarantee or as proof that an individual renewal is too high.
Having home insurance does not mean every flood loss is covered
IBC's July 23, 2026 report estimates that about 94% of Canadian residential properties are eligible for overland flood insurance. Approximately 6%, or roughly 850,000 homes, still face an access gap, concentrated in high-risk areas.
This does not mean those homes cannot obtain any home insurance. The finding concerns access to overland flood coverage. It is based on insurer survey data scaled to estimate the market, and is not a determination of any particular address's eligibility. Source: IBC
Ask what your policy covers, rather than stopping at the question of whether you have a policy.
Three areas of coverage worth checking
Sewer backup
Confirm whether you have sewer backup coverage and review its limit, deductible and exclusions. Do not assume it is included simply because your home is insured.
Overland water
Surface water, river overflow, sewer backup and a plumbing leak are different causes of loss. Policies can treat them differently. Ask which endorsements you have and whether they fit your property's exposure.
Wind and hail
Review the applicable coverage, exclusions, roof settlement terms and any separate deductible. Damage to a vehicle is an auto insurance question; it should not be assumed to fall under your home policy.
What insurers may consider
Home insurance is not priced simply from your home's sale value. Relevant factors can include:
- Location and postal-area exposure.
- Building age, construction, roof and other systems.
- The cost of rebuilding after a major loss.
- Water, wind, hail and wildfire exposure.
- Fire hydrants, fire services and emergency access.
- Claims history and the coverage, limits and deductibles selected.
- Updates, renovations and maintenance.
A practical renewal checklist
Before renewing, review:
- Dwelling and contents limits.
- Sewer backup and overland water endorsements.
- Water, wind and hail deductibles.
- Exclusions and any changes since your previous policy.
- Renovations or changes that should be reported to your insurer.
- Whether the rebuilding estimate remains appropriate.
Market value and rebuilding cost are different. If rebuilding costs have changed while your protection has not kept pace, you could face a coverage shortfall. Ask how your policy values a loss and what conditions apply to any replacement-cost protection.
A reminder from A-Z Insurance
Compare coverage as carefully as price. What is insured? What is excluded? What deductible applies? Are the limits suitable for your home?
If your renewal has increased or you would like help reviewing your coverage, contact A-Z Insurance to discuss your policy, deductibles and potential gaps.
This article is for general information and risk awareness. It is not a quote, a contract or a coverage commitment. Your actual policy wording, underwriting requirements and insurer's terms apply.
