How to Minimize the Impact of Rising Home Insurance Rates in Canada

Home insurance premiums are on the rise across Canada, leaving many homeowners wondering how to keep costs in check. While economic trends like inflation and supply chain disruption play a role, so do personal factors like your home’s age, location, and claims history. At Surex, we want you to feel informed and empowered, not overwhelmed. In this article, we’ll highlight practical steps you can take to help lower your home insurance premium while keeping the coverage you need.

Why are home insurance rates going up?

Across Canada, homeowners are seeing their insurance premiums rise—sometimes by a little, sometimes by a lot. In 2025, home insurance rates have risen 5.28%, well above the rate of inflation. Several factors are contributing to this upward trend, many of which are beyond your control. While you can’t always prevent rate hikes, understanding why they happen can help you respond more effectively. Here’s a closer look at what’s driving costs up:

•  Higher material costs due to tariffs and inflation: Building materials like lumber, drywall, and shingles have become more expensive. When the cost to repair or rebuild a home rises, insurers adjust premiums to reflect the higher potential payout.
   
• More frequent and severe weather events: Climate change is leading to an increase in damage from floods, wildfires, hailstorms, and wind events. As insurers pay out more claims, premiums go up to offset the growing risk.
   
• Labour shortages and construction delays: A lack of skilled trades across Canada is slowing down repairs and rebuilds. Longer timelines increase claim costs, which contributes to higher insurance premiums.
   
• Home-specific factors like age, condition, and claims history: Your home’s age, location, and past claims play a role in setting your rate. While not all of these are within your control, understanding them can help you take steps to reduce your risk profile.

Home improvements that can help lower your insurance premium

While you can’t control industry-wide trends, you can take steps at home that may help lower your premium. Certain upgrades make your property safer and more resilient, which reduces the risk for insurers and can lead to valuable discounts. In the sections below, we will highlight a few practical improvements that Canadian homeowners can consider to help offset rising rates.

Install a home security system

✅  What it includes: Professionally monitored alarm systems, smart doorbell cameras, motion detectors, glass break sensors, secure window locks, and automated lighting. These tools help protect your home and provide greater control over its safety, whether you’re home or away.

➡️ How it helps: Insurance providers often see monitored security systems as an effective way to reduce the risk of theft or vandalism. Homes with smart security systems may qualify for discounts, especially if the setup includes 24/7 monitoring and mobile alerts. More advanced systems typically unlock greater savings than basic setups.

🏠 Tip for Canadian homeowners: Not all insurers offer the same discounts for the same technology. A Surex advisor can help you compare providers and identify which ones reward your home security investments most effectively.

Make key home maintenance upgrades

✅ What it includes: Structural improvements such as replacing an aging roof, updating old plumbing or electrical systems, and modernizing HVAC equipment. These types of upgrades help reduce the risk of damage and improve the long-term safety and efficiency of your home.

➡️ How it helps: Insurers place significant weight on the age and condition of your home’s core systems. For example, replacing a 25-year-old roof with a new one can lower your premium, especially in areas prone to severe weather. Upgrading to PEX piping also helps reduce the risk of water damage, which is one of the most common and costly types of home insurance claims in Canada.

🏠 Tip for Canadian homeowners: Always notify your insurer after completing major upgrades. Discounts and policy adjustments often require updated documentation before they can be applied.

Add or update fire safety features

✅ What it includes: Essential additions like smoke detectors on every floor, fire extinguishers, hardwired alarm systems, and, in some newer homes, sprinkler systems. These features help detect or contain fires early and reduce the potential for major damage.

➡️ How it helps: Even basic fire safety tools can limit the scale of a loss and may qualify you for a discount. Homes with hardwired, interconnected smoke alarms typically earn more credit than battery-only models. Fire extinguishers and visible signage may also make a difference, especially in multi-unit properties or older homes.

🏠Tip for Canadian homeowners: Some insurers require proof that your fire safety features are installed and functioning. Be prepared to provide a photo, receipt, or installation certificate to ensure any applicable discount is applied.

Strengthen your home’s weather protection

✅ What it includes: Protective improvements that help reduce the risk of damage from flooding, hail, snow, or wind. Common examples include installing a sump pump with battery backup, sealing basement windows, improving exterior drainage, reinforcing roofing, and adding a backwater valve to prevent sewer backup.

➡️ How it helps: Weatherproofing measures can significantly lower the likelihood of costly claims. A sump pump with backup power can help prevent basement flooding during storms or outages. Roofing upgrades, such as hail-resistant shingles, may lead to premium reductions in regions with frequent severe weather. These improvements show insurers that your home is better prepared to handle extreme conditions.

🏠 Tip for Canadian homeowners: In some areas, homes may qualify for additional coverage, such as sewer backup or overland water protection. Insurers often reward homeowners who install prevention systems by offering discounts on these optional endorsements.

How bundling helps you save on home insurance

Bundling your home insurance with another policy, such as auto, is one of the simplest ways to reduce your premium. Many insurers in Canada offer multi-policy discounts as an incentive for combining coverage, making bundling an easy opportunity to save without sacrificing protection.

However, not all bundling deals offer the same value. Many Canadians assume they’re getting the best possible rate, but without comparing options across providers, it’s hard to know for sure.

Surex can help with that. We simplify the bundling process by comparing quotes from Canada’s top insurance providers. If you want to see how bundling could work for you, talk to a Surex advisor today.

Homeowner habits that could lead to insurance discounts

In addition to making major home upgrades, small, consistent habits can also make a meaningful difference in lowering your insurance premiums. Insurers value proactive homeowners who take steps to reduce the chance of a claim, even in day-to-day routines.

Take control of your home insurance costs

Rising home insurance rates are a challenge, but Canadian homeowners have more control than they might think. From making smart home upgrades to adopting risk-reducing habits and bundling coverage, a proactive approach can make a real difference. Start with the improvements that make the most sense for your home and budget. If you want help exploring your options, connect with a Surex advisor to ask questions and compare quotes.

See how Surex can help lower your home insurance premiums.