When you think ‘insurance’, do you think home insurance or homeowner’s insurance?
The Homeowners Insurance Industry Association (HIIA) released a new survey on Tuesday showing homeowners insurance is the most popular insurance option for consumers in Canada.
While homeowners insurance has always been the preferred choice, this new survey shows it’s the most preferred insurance option across the country, with 70 per cent of respondents choosing the insurance option.
“There is a clear and growing demand for homeowners insurance in the United States, and we are seeing this across the U.S.,” said HIIA president and CEO Chris Bowers.
“Insurance is a safe and reliable way to protect your home and is the best insurance option to protect yourself and your family.”
In 2016, there were 4.5 million insured homeowners in Canada, according to HIIA.
The average homeowner has an annual income of $55,800 and is expected to pay about $3,000 a year for homeowner’s coverage.
But that’s not the only reason people are looking to buy homeowner’s or homeowners insurance.
The survey also found that more and more Canadians are considering purchasing their own homes, with more than 40 per cent saying they would consider it in the future.
The HIIA said it’s important to note that this is an online survey and there is a chance that some of the responses could be inaccurate.
Bowers says there are three main reasons homeowners insurance isn’t as popular as it used to be.
First, there’s still a stigma associated with the term.
Second, insurance is still more expensive than other types of insurance.
Third, there is still a lot of uncertainty about what type of homeowners insurance will cover in a given circumstance.
“It’s still hard to get a quote for homeowner insurance because there is so much uncertainty about the industry and the policies being offered,” he said.
While some insurers say they are starting to see a spike in interest in the industry, other insurers are warning of the looming wave of competition.
For example, a recent survey by the Canadian Association of Insurance Commissioners (CAIC) showed that premiums for home insurance were the second-highest in the country in 2019, just ahead of auto insurance, with prices going up 7.9 per cent from the previous year.
CAIC says that the rising cost of homeowners and home insurance is driving up insurance premiums, as the more people who own their homes and own the homes themselves, the more expensive it will become.