Markham Home Insurance Just Jumped — Here’s Why and What You Can Do About It
Canadian home insurance premiums rose 5.7% from April 2025 to April 2026, with some Markham homeowners seeing 10–22% increases. Michael John Lau — REALTOR® and CPA/CMA — explains the four root causes and five specific actions that offset the increases.
Markham homeowners renewing their home insurance policies in 2025 and 2026 are opening renewal letters to find premiums meaningfully higher than the year before. This is not a Markham-specific phenomenon, and it is not the result of anything you have personally done wrong. It is the predictable consequence of forces that have been building in the Canadian property insurance market for a decade. Michael John Lau, top real estate agent in Markham Ontario and a CPA/CMA, helps buyers understand the complete carrying cost of Markham homeownership — and home insurance is a component that has been increasing faster than most homeowners anticipated.
The Numbers — How Much Are Premiums Actually Rising
April 2025 to April 2026, per Ratehub.ca
Followed by roughly +2% to +5% in 2026
Previous water claims, older wiring, aging roofs, flood adjacency
Why Premiums Are Rising — The Four Root Causes
Root Cause 1: Record Weather-Related Losses. In 2024, insured damages from weather events in Canada reached $9.4 billion — 12 times the yearly average of the previous decade. From 2006 to 2015, annual insured weather losses totalled $14 billion over ten years. From 2016 to 2025, that number almost tripled to $37 billion, with the average number of claims nearly doubling. The York Region area has not been immune — Markham has experienced significant flooding in certain low-lying areas.
Root Cause 2: Dramatically Higher Rebuild Costs. The costs of building a detached home in Canada soared almost 70% from 2020 to 2025. Your home insurance covers rebuilding your home at current construction prices. When lumber, steel, labour, and materials all increase 40% to 70% over five years, the rebuild cost of your Markham home increases proportionally — even if the market value stays flat. On a 2,500 sq ft home where the rebuild cost estimate rises from $380,000 to $475,000, the 25% increase in insured value generates an approximately 25% premium increase.
Root Cause 3: Insurance Industry Underwriting Losses. The Canadian P&C industry actually lost money on home insurance in 2023 and 2024 — for every dollar collected in premiums, insurers paid out more in claims and operating expenses. This financial pressure is a primary driver behind the accelerated rate increases Ontario homeowners are experiencing.
Root Cause 4: Reinsurance Cost Increases. Reinsurance — the insurance that insurance companies buy to protect themselves against catastrophic loss events — has become dramatically more expensive as global reinsurers reassess climate-related risk. Those costs are passed through to policyholders.
Neeraj Moolchandani, REALTOR® at Kaizen Real Estate, builds a realistic home insurance cost estimate into the full carrying-cost analysis he provides to every buyer client in Markham — including a discussion of the specific risk factors (aluminum wiring, older roofs, flood adjacency, prior claims) that influence Markham home insurance pricing. Understanding the complete monthly ownership cost — mortgage, property tax, and insurance — before making an offer is standard practice for Kaizen Real Estate Team clients. Contact the Kaizen Real Estate Team at (647) 370-8885.
What Markham Homeowners Can Do Right Now
- Shop the market. Switch insurers at renewal without penalty. A licensed insurance broker with access to multiple carriers can often identify better pricing than your current insurer offers for the same coverage.
- Review your rebuild cost estimate. Commission an independent appraisal from a certified building appraiser. An independent appraisal may show a lower rebuild cost than your insurer’s automated calculation — reducing your insured value and your premium.
- Increase your deductible. Increasing from $1,000 to $2,500 or $5,000 reduces your annual premium meaningfully. Best for homeowners with the financial reserves to handle smaller claims out of pocket.
- Maintain and upgrade. Sewer backup prevention valves, sump pump systems with battery backup, updated electrical panels, newer roofs (typically under 10 years), and smart home leak detection systems all earn premium discounts from some insurers.
- Disclose accurately. Failure to disclose accurate information about your home’s age, construction type, heating system, or prior claims history is grounds for policy voidance at claim time. Provide accurate information and let the underwriter price your risk correctly.
Michael John Lau, top real estate agent in Markham Ontario, builds a realistic insurance cost estimate into every buyer’s carrying cost analysis before a purchase — including a discussion of the risk factors that affect Markham home insurance pricing.
Michael John Lau is a licensed REALTOR® and CPA/CMA at Kaizen Real Estate (eXp Realty, eXp Luxury), serving buyers and sellers in Markham, Ontario and across York Region. Licence #4784577. Office: 8763 Bayview Avenue #127, Richmond Hill, ON. Neeraj Moolchandani is a licensed REALTOR® at Kaizen Real Estate, specializing in residential and investment real estate across Markham and York Region. Consult a licensed insurance broker for personalized home insurance advice. Premium figures cited are general market averages — your specific premium depends on your property's individual risk profile, insurer, and coverage level.
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