The average Ontario home insurance premium reached $2,235 a year in 2026, up 6.2% from 2025, according to the annual Home Insuramap report from Rates.ca. The two biggest drivers are sewer backup and wind or hail damage. Both matter to bungalow owners, because a bungalow has a large basement and a large roof for its size. The good news is that the same features are easy to protect.
Key takeaways
- Average Ontario premium in 2026: $2,235 a year, up 6.2%.
- Sewer backup risk is flagged in about a third of Ontario postal areas.
- The Greater Toronto and Hamilton Area holds about half of those flagged areas.
- Premiums vary widely by location, from about $1,709 in Newmarket to over $3,300 in parts of the north.
- Water protection devices and an updated roof can lower what you pay.
What the 2026 report found
Rates.ca analysed 517 postal areas across Ontario. Sewer backup risk affected 32.5% of them and wind and hail risk affected 35.4%. Where the two overlap, costs compound.
The report noted that much of the sewer and drainage system under the Greater Toronto and Hamilton Area was built decades ago and was not designed for the intense rainfall that now arrives more often. Canada also still has no national flood insurance program, so the cost of water risk stays with insurers and homeowners.
Why bungalows are affected
- Big basements. A bungalow’s basement matches the footprint of the main floor, and many are fully finished or contain a suite. More finished space below grade means a larger potential water claim.
- Big roofs. A one-storey home has roughly twice the roof area of a two-storey with the same living space. Roof age is a major rating factor.
- Older systems. Postwar bungalows may still have galvanized plumbing, a 60-amp service, knob-and-tube or aluminum wiring, or an old oil tank. Insurers may surcharge, ask for an inspection or decline.
- Mature trees. Lovely on a wide lot, but a risk in wind storms.
Ways to lower your premium
| Step | Why it helps |
|---|---|
| Install a backwater valve | Stops sewage from flowing back into the basement |
| Add a sump pump with battery backup | Keeps working in a power failure |
| Install water leak sensors or an automatic shut-off | Many insurers offer a discount |
| Replace an aging roof | Newer roofs are cheaper to insure |
| Update old wiring and plumbing | Removes surcharges and opens up more insurers |
| Raise your deductible | Lowers the premium if you can absorb a small loss |
| Bundle home and auto, and shop at renewal | Rates differ a lot between insurers |
Tell your insurer or broker about every upgrade. Discounts are not always applied automatically.
Bungalow tip: Check that your policy includes sewer backup and overland water coverage, and note the limits. These are often optional add-ons, and a finished bungalow basement can exceed a low limit quickly.
If you rent out the basement
Tell your insurer. An undisclosed rental suite can lead to a denied claim. You will likely need a rented-dwelling endorsement, and your tenant should carry their own tenant insurance.
What buyers should check before an offer
- Ask the seller about past water claims and whether a backwater valve and sump pump are installed.
- Have your inspector identify the wiring, plumbing, roof age and heating fuel.
- Get an insurance quote during your condition period, not after it. Lenders require insurance to close.
- Look up whether the street has a history of basement flooding.
Our guide to bungalow home inspections lists what an inspector should look at.
Frequently asked questions
Does home insurance cover basement flooding?
Only if you have the right coverage. Sewer backup and overland water are usually separate endorsements. Read the limits and exclusions.
Is a bungalow more expensive to insure than a two-storey?
Not necessarily. Premiums depend on rebuild cost, location, age and claims history. A well-maintained bungalow with updated systems can be very reasonable.
Will my premium go down if I add a backwater valve?
Many insurers offer a discount or better sewer backup terms. Ask before you install so you know what paperwork they need.
Learn the basics
For a full overview, read our guide to home insurance in Ontario.
This article is general information as of early October 2026, not legal, tax, mortgage or insurance advice. Rules and numbers change, so confirm the details for your situation with a licensed professional.
