Home insurance premiums in Canada have been rising: according to MyChoice’s Home Insurance Outlook for 2026, based on quotes in its own database, the average annual home insurance quote in January 2026 was 4.01% higher than a year earlier. Insurers price a home by its risk of fire, water and weather damage, so upgrades that remove those risk factors can lower the premium, and with some insurers they decide whether the home can be insured at all. This page lists the upgrades insurers look at, what they typically cost and how to get credit for them. It is part of our guide to property types and owning a home in Canada.
Upgrades That Lower Insurance Premiums
Tier 1: Highest Impact
| Upgrade | Typical Cost | Why Insurers Care |
|---|---|---|
| Roof replacement (to modern shingles/metal) | $8,000–$20,000 | Insurers generally prefer roofs updated within 20 years (IBC); an old roof may be surcharged or have limited coverage |
| Electrical rewiring (remove knob-and-tube) | $8,000–$20,000 | Outdated wiring is a fire risk; insurers ask about knob-and-tube wiring, and some won’t insure it |
| Electrical rewiring (remove aluminum wiring) | $6,000–$15,000 | Insurers ask about aluminum wiring and about fuses or service under 100 amps (IBC) |
| Plumbing replacement (remove galvanized/poly-B) | $5,000–$15,000 | Galvanized steel or lead pipes are more likely to crack and leak; upgrading to copper or plastic plumbing can lower the cost of insurance (IBC) |
These upgrades address the risk factors insurers care about most: fire (wiring), water damage (plumbing), and weather damage (roof). Some insurers will refuse coverage entirely for homes with knob-and-tube wiring or severely aged roofs.
Tier 2: Moderate Impact
| Upgrade | Typical Cost | Notes |
|---|---|---|
| Monitored security system | $200–$500 + monitoring fee | The IBC lists burglar alarm systems among devices that can reduce premiums; some insurers require professional monitoring for a discount |
| Sump pump with battery backup | $1,500–$4,000 (installed) | Listed by the IBC as a loss-prevention device; important in flood-prone areas and basements |
| Backwater valve | $2,000–$5,000 (installed) | Listed by the IBC as a loss-prevention device; prevents sewer backup into the basement |
| Water leak detection system | $200–$1,000 | Smart sensors that shut off water on leak detection; some insurers offer a discount |
| Updated furnace/HVAC | $4,000–$10,000 | Upgrading heating systems may help reduce your premium (IBC) |
Tier 3: Incremental Savings
| Upgrade | Typical Cost | Notes |
|---|---|---|
| Smoke and CO detectors (hardwired) | $300–$800 | Many insurers expect these as a baseline |
| Fire extinguishers (multiple) | $100–$300 | Good practice; ask whether your insurer gives any credit |
| Impact-resistant windows | $15,000–$35,000 | More relevant in hail-prone regions (Alberta, Prairies); for roofs, the IBC says impact-resistant roofing can reduce hail damage by up to 15 times |
| Deadbolt locks on all exterior doors | $200–$500 | Basic security requirement |
| Fireplace/chimney update | $500–$3,000 (inspection + repair) | Wood-burning appliances affect the availability and affordability of home insurance (IBC) |
How Insurers Assess Your Home
Insurers look at your home’s risk profile across several categories:
| Risk Category | What Insurers Check | Higher Risk (Higher Premiums) | Lower Risk (Lower Premiums) |
|---|---|---|---|
| Roof | Age, material, condition | 20+ year old asphalt shingles | Metal or new asphalt (<10 years) |
| Electrical | Wiring type, panel age | Knob-and-tube, aluminum, fuse panel | Copper wiring, modern breaker panel |
| Plumbing | Pipe material, age | Galvanized steel, polybutylene (Poly-B) | Copper or PEX |
| Heating | System type, age | Old oil furnace, wood-only heating | Modern gas furnace or heat pump |
| Water protection | Sump pump, backwater valve | No sump pump in basement | Sump pump with battery backup + backwater valve |
| Security | Locks, alarm system | No alarm, basic locks | Monitored alarm, deadbolts, cameras |
| Claims history | Past claims at address | Multiple water or fire claims | Claim-free for 5+ years |
| Location | Flood zone, wildfire risk | High-risk zone | Low-risk area |
Provincial Considerations
Insurance costs and risk factors vary significantly by province:
| Province | Top Risk Factor | Upgrades to Ask About |
|---|---|---|
| Ontario | Water damage (sewer backup, flooding) | Backwater valve + sump pump |
| British Columbia | Earthquake and water | Earthquake retrofitting (if applicable) |
| Alberta | Hail and severe weather | Impact-resistant roofing/windows |
| Quebec | Water damage | Sump pump + leak detection |
| Atlantic provinces | Wind and water | Roof upgrade + water protection |
| Manitoba/Saskatchewan | Severe weather | Roof + backwater valve |
No government body publishes average home insurance premiums by province. For attributed figures from one quote database, see average home insurance in Canada.
Water Damage
Water damage is a major source of home insurance claims, and many policies treat it separately, with their own limits, deductibles or optional coverages. Upgrades that keep water out of the basement matter twice: they can lower the premium with some insurers, and they help prevent a claim in the first place.
Water Protection Checklist
| Protection | Cost | Claim Prevention Value |
|---|---|---|
| Sump pump | $800–$2,000 | Prevents basement flooding from groundwater |
| Battery backup sump pump | $500–$1,500 (add-on) | Works during power outages (when flooding is most likely) |
| Backwater valve | $2,000–$5,000 | Prevents sewer backup into basement |
| Water leak detection (smart) | $200–$1,000 | Alerts to leaks and can auto-shut water |
| Automatic water shutoff valve | $500–$1,500 | Shuts water supply when leak detected |
| Proper grading and drainage | $1,000–$5,000 | Directs water away from foundation |
Total water protection package: $5,000–$15,000 installed. Ask your insurer which of these it gives a discount for.
Getting Credit for Upgrades
| Step | What it involves |
|---|---|
| 1 | An insurance review: a broker or insurer can say which upgrades would change the premium |
| 2 | Ranking upgrades by what the insurer flags: each insurer weighs factors differently |
| 3 | Records: receipts, inspection reports and before-and-after photos |
| 4 | Telling the insurer after each upgrade: a discount applies only once the insurer knows |
| 5 | Comparing quotes at renewal: other insurers may rate the upgraded home differently |
| 6 | Bundling home and auto: insurers often offer a discount for insuring both with them (IBC) |
| 7 | A higher deductible: when the deductible goes up, the premium goes down (IBC) |
Before You Renovate for Insurance Savings
Few of these upgrades pay for themselves through premium savings alone. Their main value is lower risk: fewer fires, leaks and floods, and in some cases being able to get coverage at all. Some, such as a new roof or a heat pump, also add resale value or cut energy bills; see renovations that increase your home value. Before committing to one:
- Ask your insurer or broker for a quote with and without the upgrade, so you know the actual discount.
- Remember that discounts are not always additive: actual savings depend on your insurer’s rating model and may be lower than the sum of individual discounts.
- Check whether the insurer needs proof, such as an electrician’s certificate, a roofing invoice or a monitoring contract.
Related Pages
- Home renovation budget guide
- Home renovation loans in Canada: ways to pay for the work.
- Home maintenance checklist by season: routine upkeep that prevents water and weather claims.
- Home value estimator: estimating what the house would sell for.