Why Markham Premiums Sit Below the Provincial Average

Markham homeowners generally pay less than the Ontario average. At roughly $1,881 against a provincial figure of $2,235, the gap is close to 16%.

That is not a discount anyone negotiated. Premiums reflect claims history, construction age and type, proximity to fire services, and the local risk profile. Markham's housing stock, municipal services and claims record combine to produce a number below the provincial average.

Michael John Lau, a REALTOR® serving home buyers and home sellers in Markham, Ontario, points out that the average is the least useful number in the conversation. What matters is what a specific policy on a specific home covers, and most homeowners have never read theirs closely enough to know.

The Three Coverages People Assume They Have

This is where most of the surprises happen. The following are not standard. Each one is an endorsement that has to be added.

Overland water

This covers water that enters the home at ground level from an outside source: an overflowing watercourse, heavy rainfall that pools and flows in, rapid snowmelt. Without this endorsement, that water is generally not covered.

Sewer backup

This covers water backing up through drains, sewers, sumps or septic systems. It is a different endorsement from overland water, and a homeowner can have one without the other. For a home with a finished basement, this is usually the most consequential coverage on the list.

Earthquake

Also a separate endorsement, and one many Ontario homeowners decline. That is a judgment call rather than an error, but it should be a decision rather than an assumption.

Why This Matters More Than It Used To

The Insurance Bureau of Canada reported approximately $8.55 billion in insured losses in 2024. The July 2024 flooding in the Greater Toronto Area accounted for roughly $990 million of that on its own.

A single storm event in this region produced close to a billion dollars in insured damage. Many of the homeowners affected discovered their coverage position during the claim rather than before it.

The practical takeaway is not alarm. It is simply that water is the dominant residential claim risk in this part of Ontario, and water coverage is the part of a policy most commonly missing.

The Basement Suite Conversation

This is the section Michael John Lau considers the most important in this article.

A large number of Markham homes have a basement apartment. Some are registered. Many are not. A homeowner who rents out a basement unit and has not told their insurer is carrying a risk they may not have thought about, because the policy was underwritten on the basis of a single-family home.

The advice is simple and it is not a lecture about compliance:

Just tell them. Insurers need to know about rental suites, even if they are illegal.

That is worth unpacking, because homeowners often assume disclosure creates the problem rather than solving it.

• An insurer that knows about the suite can rate the policy correctly and cover it.
• An insurer that does not know about it is insuring a different property than the one that exists.
• The moment a claim is filed, the unit becomes visible anyway. The adjuster walks through the basement.
• Discovering an undisclosed rental unit at claim time is the worst possible sequence for the homeowner.

A homeowner who is nervous about the legality of the unit is exactly the homeowner who should be having this conversation, not avoiding it. A broker's job is to place the risk. That is a different conversation from a by-law conversation, and the two should not be confused with each other.

What Buyers Should Do Before Closing

• Get a quote before the conditions come off, not after. On an older home, or one with a history of water claims, insurability is not a formality.
• Ask specifically about overland water and sewer backup by name. Do not ask whether the policy covers flooding, because that word means different things to different people.
• Ask about the deductible on water claims, which is often higher than the base deductible.
• If the home has a basement suite, say so at the quoting stage. It affects the quote, and finding that out at the start is better than finding it out later.
• Ask about the claims history of the property. Prior claims follow the address, not the owner.

What Sellers Should Do

• Know your own claims history before a buyer's insurer finds it.
• Have documentation for any water mitigation work. A backwater valve, a sump pump with a battery backup, or waterproofing all help a buyer get insured and all help the sale.
• If there is a basement suite, be prepared to talk about it honestly. Buyers financing partly on rental income will have their lender and insurer looking at it regardless.