Many homeowners in Quebec have noticed their home insurance premiums increasing – often even when they haven’t made a claim. This trend has accelerated over the past few years due to several economic, environmental, and property-related factors.
If you own a home in Montréal, Laval, the Laurentians, or surrounding regions, here’s what’s driving these changes and what you can do to stay in control.
1. Rebuilding cost, not market value, determines your premium
Home insurance is based on the cost to rebuild your home in case of a total loss, not its resale or market value. According to the Insurance Bureau of Canada and industry data:
- Construction and renovation costs have risen significantly
- Labour shortages are impacting timelines and pricing
- Updated building standards increase the required budget to restore a property
Even if you haven’t renovated, insurers adjust coverage amounts to reflect increased reconstruction expenses.
2. Extreme weather events are becoming more frequent
Climate-related claims are rising in Quebec, particularly linked to:
- Flooding and heavy rainfall
- Ice storms and freeze-thaw cycles
- Strong winds and backyard structure damage
According to national insurance industry data, weather-related losses exceeded 1.5 billion dollars in Canada in 2023 alone, accelerating a shift toward risk-based pricing.
You may never have made a claim, but your community’s increased exposure will directly influence your premium.
3. Inflation and supply challenges
The construction sector has experienced a 14 to 22 percent cost increase since 2020 (based on Quebec government economic indicators). This is due to:
- Global supply chain delays
- Difficulty securing qualified contractors
- Increased cost of materials and specialized equipment
Insurers incorporate this into risk forecasts to ensure coverage remains sufficient in case of major claims.
4. Urban realities in Montréal
Older building structures and densely populated neighborhoods bring additional risk factors:
| Risk factor | Potential impact |
|---|---|
| Age of the building | Higher risk if plumbing/wiring not upgraded |
| Flood-prone areas | Basement or parking-level infiltration |
| High-density housing | Faster fire spread potential |
| Historical claims in sector | Increases community risk factor |
Industry assessments show that pre-1980 buildings in central Montreal have up to 30% higher water-related claims compared to newer homes.
5. Claims history counts
Insurers value consistency more than severity. Multiple small claims over a short period can increase your premium more than one major isolated incident. Strategic use of insurance is key.
6. Optional coverages may improve protection, but impact cost
Homeowners are increasingly adding enhanced coverage for:
- Water damage
- Home equipment breakdown
- Electric charging station systems
- Pools, spas, outdoor structures
These protections are often beneficial but can affect the annual cost.
How to help reduce or stabilize your premium
| Strategy | Potential impact |
|---|---|
| Increase deductible | May lower annual premium |
| Install detectors or monitored security | Qualifies for discounts |
| Upgrade roofing, plumbing or electrical | Lowers assessed risk |
| Avoid claiming for small damages | Helps maintain clean record |
| Compare insurers at renewal | Rates vary significantly |
| Ask for an annual coverage review | Ensures you’re paying only for what you need |
How Assurances Simon supports homeowners
As an independent brokerage, our role is to:
- Assess reconstruction value accurately
- Adjust coverage based on actual needs
- Identify risk-reduction opportunities
- Compare multiple insurers before renewal
- Explain any changes to your annual premium clearly
We work for you, not for the insurer. Our goal is to provide the right level of protection at the best possible rate.
In summary
✔ Home insurance premiums are increasing primarily due to rising reconstruction costs, extreme weather, and inflation.
✔ Montréal-area properties, especially older buildings, are more heavily affected.
✔ Good risk prevention decisions and proactive coverage management can help stabilize your rate.
Want to review your home insurance with a specialist?
📞 514-881-8885
📍 8490 Saint Hubert, Montreal, QC, H2P 1Z5
💬 Free consultation to review and optimize your coverage
Understanding your insurance helps you protect what matters most.
