Here is a brief summary of these. For full details go to Insurance Bureau of Canada’s risk factor page.
- Replacement cost: the size, composition, construction quality and contents of your property affect insurance premiums the most.
- Where you live: insurers track the cost, type and number of claims by neighbourhood to gain insights to the likelihood of a future claim.
- Proximity to water: insurers look at how far your home is from a fire hydrant or fire station as this will influence fire damage risk.
- Claim history: past claims are often an insurer’s best predictor of future claims activity.
- Electricity: the type of wiring and the way electricity comes into your house is taken into consideration.
- Pipes: the type and age of your pipes affects premiums – insurers generally prefer homes with upgraded copper or plastic plumbing.
- Wood stoves: these can be a source of house fires and carbon monoxide poisoning.
- Age of roof: a roof that is no more than 15 years old is preferred.
- Other uses: inform your insurer if you have a rental apartment, operating business or there are significant renovations.
- Other factors: security system, fire alarms, swimming pools or other outside structures.
Once these home insurance rating factors are taken into consideration, you can decide if you want basic or full insurance coverage.