How to Get Home Insurance Discounts in Canada
Common home insurance discounts in Canada
Home insurance discounts in Ontario reward policyholders with a lower risk of claims or a lower overall cost to insurers with lowered premiums. Discounts typically apply to your base premium, so you’ll still pay the full price of any endorsements on your policy such as extended water damage coverage. Discount availability and amount varies by insurer, and your eligibility is subject to change based on events like a claim.
Home insurance discounts offer peace of mind that you’re getting the best price without having to reduce the amount of coverage on your policy.
Bundling discounts
Bundling discounts are one of the most common—and most powerful—types of home insurance discounts. The Insurance Bureau of Canada lists bundling as one of the best ways to drive down your home insurance premiums.
If you bundle your home and car insurance with the same insurer, you could earn an average of 20% or more off your home insurance premiums, along with an additional discount on your car insurance. The exact amount of your multi-policy discount varies by insurer, with some companies offering as much as 35% off your base home rate to homeowners in Ontario.
“Bundle discounts aren't just a marketing perk. Insurers often charge less because customers who bundle tend to stay longer. Even so, it's worth comparing quotes at every renewal to make sure you're still getting the best value.” —Adam Seguin, Licensed Insurance Advisor
Home discounts
Certain home characteristics or upgrades could earn you a discount.
- New home discount. If you’re a first-time homeowner buying a newer home, you may be eligible for lower insurance rates.
- Mortgage-free discount. When you pay off your mortgage in full, you may qualify for a lower rate.
- Alarm system discounts. If your property has an alarmed home security system (or if you choose to install one), you may be eligible for a discount of 10% or more.
- Fire prevention discounts. If your home has a sprinkler system or a fire alarm that directly notifies the fire department of a blaze, your home insurance premium could be discounted.
- Water damage prevention discounts. Installing a sewer backup valve, sump pump, leak detector(s), or other means of preventing and mitigating water damage could earn you a discount—usually 5–10% per preventive device or system.
Not sure if your current insurer offers these discounts? Want to know exactly how much you could save? The availability and amount of discounts for home systems varies between insurers, so do your research.
Individual discounts
Certain homeowners may qualify for discounts based on aspects of their personal profile.
- Mature homeowner discount. Some insurers offer discounts to homeowners who are above a certain age threshold, often 55+ years old.
- Non-smoker discount. Because smoking carries a significant risk of fire, non-smokers may be eligible for discounted home insurance rates.
- Professional or alumni association discounts. Some professional organizations, unions, alumni associations, and other groups offer modest discounts on home insurance to their members. Note that these group discounts may be tied to a partnership with a specific carrier, so availability could vary and you might be eligible for a competitive rate from a company that doesn’t offer the discount.
Account activity discounts
Finally, you can earn certain discounts through the way you set up and use your home insurance policy.
- Annual payments discount. Paying your annual home insurance premium in full rather than splitting it into multiple payments across the year typically earns you a small discount.
- Claims-free discount. Another powerful savings mechanism, a claims-free discount rewards homeowners who haven’t made an insurance claim on their policy for a certain number of years. Check your policy details to see how long you need to stay claims-free to earn this discount, which can total as much as 20% off your premiums.
- Online quote discount. Many insurers reward customers who request quotes online with a small (5%) discount, since this method of direct sales can reduce expenses for insurers.
Can you stack home insurance discounts?
You can combine, or stack, home insurance discounts to maximize your savings. Keep in mind that:
- Some discounts only apply to part of your coverage: For instance, a discount for a sewer backup valve would only apply to the cost of your sewer backup endorsement (if you have one), and not to your overall premium.
- Discounts apply to your base premium: If you have multiple discounts on your policy, expect them to be applied to your base rate rather than the discounted rate after previous discounts.
Other ways to save money on home insurance in Canada
Discounts aren’t the only way to lower the cost of your home insurance coverage in Canada. Other smart savings strategies, such as a high deductible or regular advisor reviews, could help you reduce unnecessary costs.
A higher deductible can reduce the costs you pay for home insurance year-to-year. If you haven’t revisited your deductible since you purchased your policy, it may be time to consider a change.
Avoid this common mistake: Don’t raise your deductible so high that you wouldn’t be able to pay it in the event of a major covered loss such as a house fire. Carrying a deductible you can’t pay essentially renders your homeowners insurance useless.
“The number one way to reduce your insurance cost is having a higher deductible.” —Reza Aziz, Licensed Insurance Advisor
As the Canadian home insurance market grapples with rising costs from tariffs, inflation, and climate change, comparing fresh home insurance quotes regularly is more important than ever. Every insurance provider adjusts their pricing regularly, so it’s up to you to make sure you’re with the insurer whose pricing model is the best fit for your home.
Request and compare home insurance quotes from multiple providers at least once every one to two years.
The most effective way to avoid overpaying for home insurance is to review your coverage options with a licensed insurance advisor and make sure you’re only paying for coverage you need, not extras you won’t use.
When you request home insurance quotes with PolicyMe, a licensed advisor will conduct a thorough review of your coverage, your finances, and the risk factors facing your home. Our goal is to get you the right coverage at the best rate available—no fluff, no padded costs, and no pressure to buy.
Discount questions to ask your insurer before renewing
Whenever your home insurance policy is up for renewal, it’s a good idea to ask your insurance broker or advisor these questions to ensure you’re taking full advantage of discounts:
- Would switching to another insurer earn me a better bundling discount?
- Should I consider raising my policy deductibles?
- What home upgrades would my insurer reward with a discount?
FAQ: Home insurance discounts
This article is for general information only and is not insurance or legal advice. Examples and any sample quotes or rate ranges are illustrative and do not constitute an offer or guarantee of coverage, price, or eligibility. Actual coverage, discounts, and premiums depend on your individual circumstances and the insurer provider; if there is any discrepancy, your policy and insurer documentation govern. For advice about your situation, speak with one of our licensed insurance professionals.