Published on this website: October 19, 2026
A-Z Insurance · Information checked: 2026-10-11 · Original publication date unknown
When a neighbour mentions a lower home-insurance premium, it is natural to wonder why yours costs more. Homes on the same street may share some risks while differing in construction, use, coverage and applicant information.
Start by aligning the policy terms. An annual price alone cannot show which option better suits your home.
Similar-looking homes can cost different amounts to rebuild
Size, materials, finishes and additional structures affect rebuilding estimates. A finished basement or custom materials can matter. The cost to rebuild is not the same as the property’s market price, so copying a neighbour’s dwelling limit is not a reliable approach.
IBC identifies replacement cost, maintenance, property features, location, fire-protection access and claims history among factors that can influence home-insurance pricing. IBC on how home rates are set
Equipment and occupancy can change the assessment
The condition of the roof, heating, electrical and plumbing systems may affect acceptance, information requirements and the quote. Update records after improvements without assuming an automatic discount.
Owner occupancy, long-term rental, short-term rental, business use and vacancy may need different protection. Features such as a pool, wood stove or separate workspace should be disclosed accurately. Do not choose the cheapest-looking answer instead of describing the property as it is.
Compare limits, endorsements and deductibles together
A lower quote may have different dwelling, contents or liability limits, or omit water coverage included elsewhere. Replacement-cost and depreciated-value settlement can also differ. FSRA recommends asking about these details rather than considering price alone. FSRA’s property-insurance questions
A higher deductible may reduce the premium, but increases your share of a covered loss. Check both the general deductible and any special water or other deductibles. Choose amounts you could actually afford.
Claims, discounts and timing can also explain a gap
Insurers use different pricing approaches and products, and personal claims history may affect a quote. Check the coverage period too: a neighbour’s previous renewal price is not necessarily a price available to you today.
Bundling, protective devices and eligible claims-free or other discounts may influence the total. They are not identical across insurers. A standard smoke alarm or a camera does not guarantee substantial savings. Before buying equipment for an insurance credit, ask about eligibility, evidence and the actual quote. IBC on potential home-insurance savings
Credit information: distinguish home from auto insurance
Some Ontario home insurers may use credit information in assessment or pricing, with prior informed consent. Ask what is collected, why, who receives it and the scope of consent. RIBO says brokers should clearly explain why credit information is requested, how it will be used and with whom it will be shared. RIBO’s consent guidance
IBC’s industry code also calls for prior consent and compliance with applicable law. There is no universal discount amount; ask the insurer about the consequences of declining or withdrawing consent. IBC’s credit-information code
Do not apply this to Ontario car insurance. FSRA states that credit scores are not permitted in auto-insurance rating or underwriting in Ontario. FSRA on credit scores and auto insurance
A useful quote-comparison checklist
Ask the broker to use consistent information and identify differences in:
- Address, occupancy, residents and equipment details
- Rebuilding estimate, liability limits and contents protection
- Water and other endorsements, including limits and exclusions
- General and special deductibles and settlement basis
- Included discounts, eligibility and total annual versus instalment cost
- Quote validity, start date and any switching costs or timing issues
If a large gap remains, ask about the reasons that can be established rather than speculating about a neighbour’s private credit or claims information. The aim is suitable coverage at a price that works for you.
Contact A-Z Insurance to compare home-insurance options. Phone: 905-707-2929. Email: info@azinsure.ca.
This is general information. Pricing, discounts, eligibility and coverage depend on the quote and policy. No lowest-price or neighbour-matching premium is promised.