Cottage Insurance Rates on the Rise

William Spotton loves his little piece of paradise on Farguhar Lake near Wilberforce. It's a long cabin built by his grandfather in 1948. With no electricity or running water, it's not a fancy cottage, but to Spotton, it's his refuge. So, when it came time to renew his insurance for the waterside property, it was a shock to discover how much more he'd be paying, four times the original rate when he took over the property in 2000. Insurance premiums for the cottage jumped from just over $400 to $1,600, with the highest quote coming in at $3,200.But Spotton is not alone. Insurance rates have hit an all-time high following the highest payout year for claims in 2024. In 2025, the average home insurance premium in Ontario jumped by about seven point five per cent compared to 2024, a rise far above general inflation (2.3% for 2025), and above the national average of 5.3%.This surge continues a multi-year trend of escalating home insurance rates. Ontario premiums have increased 84% between 2014 and 2024, vastly outpacing the 28% growth in general consumer prices over the same decade. The culprit behind these steep hikes is largely the growing impact of climate-related disasters and higher rebuilding costs.CanoeFM spoke with Spotton and the Insurance Bureau of Canada to find out what's driving insurance costs up.