Homeowners insurance in Vancouver

In Vancouver, where the housing market is among the most expensive in Canada, securing adequate homeowners insurance is crucial.

This guide covers everything you need to know about home owners insurance in Vancouver, including key concepts, trends, best practices, and future outlooks.

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What's the Price of Home Insurance in Vancouver?

Research by J.D. Power indicates that the average cost of homeowners insurance in British Columbia is $1,250 annually, which translates to just over $100 per month. This is slightly above the national average of $1,200.

The cost of homeowners insurance varies significantly between provinces and cities due to several factors. Provinces with numerous major cities and higher population densities typically have higher average premiums, as home values tend to be higher.

The vibrant city of Vancouver, where stunning mountain views meet the Pacific Ocean, and urban living is at its finest, this city consistently ranks in the top 3 most expensive cities in Canada, the home insurance BC average cost is higher compared to other cities in British Columbia. However, insurance premiums will differ considerably based on your home, your policy, and the company you choose.

→ Check out the average cost of home insurance in British Columbia

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How to lower your homeowners insurance premium in Vancouver, BC

Securing insurance for your most valuable asset—your home—is essential, but it can also be costly. Once you find a reputable and knowledgeable broker to help you, you might be surprised by the premium associated with your insurance policy.

Several factors contribute to the calculation of your homeowners insurance premium. Insurance companies have become data-driven institutions, knowing precisely what loss history is associated with each postal code within BC. With this wealth of data, insurers have become adept at calculating the likelihood of future losses in specific areas and adjusting premiums accordingly.

Fortunately, some factors that determine your homeowners insurance premium are within your control. Let’s explore how you can potentially lower your annual premium:

Your Age

Many insurance companies offer a ‘mature age discount’ as part of their insurance application. Depending on the company, this discount could provide savings of up to 10% for those aged 65 or older.

Your Deductible

The deductible you choose for your policy inversely affects your premium. Selecting a higher deductible (e.g., $5,000) will result in a lower annual premium. However, remember that you will be responsible for paying this higher amount if you file a claim.

Credit Score

Nearly all insurance companies now use credit scores as a factor in calculating premiums. There appears to be a strong correlation between a higher credit score and a lower likelihood of filing a claim. Those willing to consent to a soft credit check may save up to 15% on their annual premium if they have a solid credit score. Insurance companies will not increase your premium if you have a lower credit score, so there’s no risk in having it checked.

Claims History

Insurance companies prefer clients who do not frequently file claims. To attract these clients, many offer a “Claims-Free Discount.” If you have maintained property insurance for years without filing a claim, you could receive a discount ranging from 5% to 15%.

Mortgage

While most property owners in BC carry a mortgage, those who are mortgage-free can benefit from a mortgage-free discount of around 10% off the base premium. Insurers believe that individuals without a mortgage are likely more financially responsible, translating into more responsible homeownership.

Age of the House

Purchasing a brand-new home or completely renovating an existing one can qualify you for a ‘new home discount’ of up to 10% off the base premium from several insurers. Newer homes tend to have fewer claims, making them more attractive to insurance companies.

Alarms, Detectors & Security Systems

A secure home is appealing to insurance companies. If your home features active smoke detectors, a fire alarm, and/or a monitored security system, inform your insurer. Many companies offer a 5-10% discount off your base premium for these security features.

Location, Location, Location

The location of your home significantly affects the premium charged by insurance companies. With a heightened focus on data, insurers know which postal codes are prone to burglaries, flooding, or earthquake damage. Before making an offer on a new home in Vancouver, reach out to us to assess the insurability of the property and how insurance companies rate your potential new home.

Coverage Options

Another way to lower your homeowners insurance premium is to remove coverage options you don’t need. For instance, if you live in an area of BC far from an earthquake faultline, you might opt to remove earthquake coverage from your policy. Similarly, if you believe your home is not at risk for overland water damage, you can exclude this coverage. However, before making any changes, consult with one of our insurance advisors to ensure you are not leaving yourself vulnerable to potential risks.

For a comprehensive overview and personalized advice on home insurance in Vancouver, visit InsureBC Home Insurance.