Homeowners across Ontario are feeling the pinch as home insurance rates surge well beyond inflation, driven largely by climate change and an increase in costly natural disasters. A new study by Canadian Insurtech company MyChoice reveals that communities hit hardest by wildfires and flooding are seeing some of the steepest premium hikes in the province.
Thunder Bay, already among Ontario’s priciest markets, experienced a staggering 26.39 per cent jump, pushing average monthly costs to $2,190. North Bay followed closely with a 22.64 per cent rise, while Pembroke and Ajax saw their premiums spike by more than 22 per cent, leaving homeowners paying $1,831 and $1,248 per month respectively.
Across the province, home insurance rates rose an average of 7.15 per cent compared to last year — far outstripping the general inflation rate of 2.3 per cent. Over the past decade, premiums have climbed 84 per cent, nearly tripling the growth in consumer prices during the same period.
Researchers attribute the rapid escalation to the frequency and severity of weather-related disasters, with insured losses from extreme weather setting a national record of $8.5 billion in 2024. Insurers are raising premiums to offset the surge in claims, passing the cost burden on to homeowners.
Not all communities faced bad news, however. Woodstock, Waterloo, Orangeville, Niagara Falls, and Barrie saw modest declines in rates, while Kitchener remains the most affordable among nearly 50 cities surveyed, averaging $998 per month.