Top Reasons for

Property Rate Increases

The last few years have affected us all in many ways, some impacts have been direct and obvious, and others occurred in a less obvious way. Unfortunately, we have had so much to manage at the surface level that many have yet to have the time or energy to consider the snowball effect as we digest the fallout of the pandemic. We all know the cost of living has gone up, and this does include insurance. But why?

Here are the top 4 insights into rate changes and how your Lawrie Insurance Group Broker can help you.

The premium you pay for your property insurance is influenced by various factors that Insurance Actuaries consider while assessing the severity and probability of risks. The three factors below have shifted over the last three years and significantly impacted these estimates.


In the earlier stages of the pandemic, we were all directed to stay home, locked down in our bubbles. Many must reorganize their home environments to make room for office equipment and host virtual gatherings. Vacation time was stacking up with nowhere to go. With a need being highlighted and the time and savings to do it, home improvements became a standard “pastime.”

Whether the renovations were large construction, such as additions or finishing the basement, more functional renovations, such as increased office & electronic equipment, or perhaps leisure upgrades, such as adding a pool or cosmetic upgrades, the result is the same. Besides the overall enjoyment of your home, its value has increased, meaning its replacement costs have increased.

It is important to ensure you’re insured with Builder’s Risk or Course of Construction during your renovations. When they are completed, it’s time to contact your Lawrie Insurance Group Broker to review your policy and ensure the policy limits consider your renovations. Your policy must reflect the actual rebuild value of your home. Call us today and ask about your Guaranteed Building Replacement Costs.


At the same time, many of us were renovating our homes, causing an uptake in consumer purchasing. Larger-scale operations saw an opportunity and need to build more structures – homes, condominiums, commercial buildings etc. Business interruptions, labour cuts, and increased purchasing led to a supply shortage and a surge in material costs.

When a significant or total loss occurs, we rely on our insurance to rebuild our homes precisely as they were before, or ideally better. We also expect the additional cost of living while we are relocated to be covered by our policy. Insurance Actuaries take into account the various supply-chain disruptions when assessing premiums.

When you connect with your Lawrie Insurance Group Broker, they will ask several in-depth questions, such as the building materials, recent updates, and security/alarm systems. The reason for this is to ensure your home is getting rated for its proper value and to benefit from particular savings and discounts. Many of our carriers offer unique discounts, and we want to help reduce the premium while ensuring you have the coverages that suit your unique needs. 

Climate Change

Regardless of what you believe may be causing it, denying the uptake in severe weather and climate change is difficult. From high winds to significant floods and everything in between, the damage mother nature can cause can be substantial. As these weather patterns become more common and extreme, more homeowners are experiencing larger losses. A significant loss leads to repairs and rebuilds, as noted above.

Eco-friendly solutions will reduce your impact on our climate, and many can also lower your insurance premiums! Call your Lawrie Insurance Group Broker to discuss how energy-efficient appliances, windows, solar panels, or even an electric vehicle might change your insurance rates.

Your Neighbourhood

At the most basic level, the concept of insurance is a matter of risk pooling. Our policies are not intended for maintenance repair but for when a devastating loss occurs. By purchasing insurance, the premium we pay is our agreement to pool our risks with others through the insurance company we choose. The coverages we select are part of this agreement, and when an occurrence happens that is covered, we can feel secure in knowing the pool we paid into is there to support our recovery.

The actuaries for the insurance company, amongst many factors, utilize statistics. Therefore, the demographics of your neighbourhood have an impact on your rates. If your residence is in a commercial area, near a flooding zone, or central in a city with high volume, all these factors into the probability and severity of the risks you seek coverage for.

While we may not know exact statistics at the broker level, you can be confident your Lawrie Insurance Group Broker knows the rating schedule of each of our many carriers. This is why we take the time to get to know you, your unique needs, and what coverages you value. This way, we can shop for you to find the best carrier to pool into.

No matter the neighbourhood you live in, if the value of your home has increased, if there is a shortage of materials, or if mother nature throws another curveball, you should not have to take your chances by cutting coverages to save a few dollars. 

Written by: Laura Ferri 

*The content on this page is for information purposes only. The insights and insurance products described herein are subject to terms, conditions, restrictions, and exclusions, and should not be taken as a replacement for current information provided by governing authorities. Please contact your Personal Broker for any questions specific to your policy and needs.

Let us help you feel secure while saving!

Call your Lawrie Insurance Group Broker today to discuss your needs.