Homeowners’ premiums down in New Brunswick

Insurance Bureau of Canada data shows a decline in homeowner’s premiums in New Brunswick between 2004 and 2005.
In 2005, the average premium was $340, whereas in 2004 it was $358.
Homeowner’s pricing is looked at in terms of premium per $1,000 of coverage, the IBC noted in a recent press release, issued in response to a recent CBC report. “In 2004, New Brunswick homeowners paid, on average, $2.70 of premium for every $1,000 in coverage. In 2005, they paid, on average, $2.32 per $1,000 worth of coverage a reduction of 17.7%.
“This is at about 2001 levels, when the average price was $2.33 per $1,000 of coverage.”
At the same time, the IBC notes, the average size of policy has gone up. Due to increased building costs and content replacement costs, the average amount of coverage has gone from $133,000 in 2004 to $146,000 in 2005.
“In other words, people are buying more insurance, but the price per unit ($2.32 of premium per $1,000 of coverage) has gone down,” notes IBC’s Don Forgeron, vice-president, Atlantic. “The net effect, on average, has been a decline in what most people are paying. But some New Brunswickers may be paying more because the cost to rebuild their homes, or to replace their belongings, has gone up.”
The price trend of homeowner’s insurance in recent years compares very favorably with other costs related to home ownership, the IBC says. According to Statistics Canada, home replacement costs in New Brunswick have increased 12.1% since 2001. New housing prices have gone up 12.3%, and maintenance and repair costs have gone up 10.2%.