Have you ever wondered why your home insurance premiums seem higher than expected, even when your house looks perfectly fine? One reason could be hiding behind your walls—your plumbing and electrical systems.
For many Toronto homeowners, the age of these systems often flies under the radar. Yet property insurance companies pay close attention to them. Why? Because older pipes and outdated wiring increase the risk of costly claims from water damage and electrical fires. The older your home’s internal systems, the greater the perceived risk—and the higher the premiums you may face.
It’s not just about wear and tear. The materials used, the type of wiring, and even the capacity of your electrical panel all play a role. If the systems haven’t been upgraded in decades, you could be paying more than necessary for insurance—or facing coverage limits without realizing it.
In this post, we will explore how the age of your plumbing and electrical infrastructure affects insurance costs. We’ll also provide guidance on how to manage these risks and potentially reduce your premiums.
Property insurance companies care about the age of a home's systems because older plumbing and electrical components significantly increase the risk of water damage and fire—two of the costliest claims. Insurers in Canada routinely assess these systems during underwriting, with particular concern for materials such as galvanized steel pipes, polybutylene, knob-and-tube wiring, or aluminum wiring. Homes with systems over 40–50 years old may face higher premiums, limited coverage, or even declined applications unless upgrades occur. While updates are not always mandatory, modernizing these systems can improve safety, make the home more insurable, and potentially lower insurance costs.
Property insurance companies will require proof that the upgrades meet current standards. Homeowners should keep the following documents available:
Providing this documentation can speed up the underwriting process and help secure better policy terms.
Honesty during the insurance application process is essential. Concealing the age or condition of plumbing or wiring can have serious consequences:
If damage occurs and the insurer discovers hidden risks (like undisclosed knob-and-tube wiring), the claim may be denied.
Discovering inaccuracies after issuing the policy could lead to cancellation, leaving the home uninsured.
In rare but serious cases, intentional misrepresentation may result in legal action or financial penalties.
To avoid issues, many insurers will request:
Photos of systems
Third-party inspection reports
On-site evaluations by approved inspectors
Not every homeowner can afford to replace their systems all at once. However, property insurance companies in Toronto may accept partial mitigation efforts, especially when they demonstrate a commitment to reducing risk. Consider the following:
These alert homeowners to plumbing issues before they cause major water damage.
Regular servicing of plumbing and electrical systems helps catch problems early and demonstrates responsibility to insurers.
Even if the original wiring remains, replacing an outdated panel can improve safety and lower fire risk.
Arc Fault Circuit Interrupters (AFCIs) and Ground Fault Circuit Interrupters (GFCIs) are important safety upgrades that reduce fire and electrocution risk in older wiring setups.
At Begin Insurance, we understand the concerns Toronto homeowners face when applying for property insurance. Whether you're dealing with outdated plumbing, aging electrical systems, or just want clarity about your options, our experienced brokers are here to guide you. We take the time to understand your property's unique details and match you with insurance solutions that fit your needs—and your budget. If an upgrade is something you're considering, we’ll help you understand how it might affect your coverage and what steps to take next.
Our team is ready to walk you through the process, answer your questions, and connect you with the right property insurance company in Toronto who value transparency and proactive homeowners. Contact us today to get expert advice and competitive home insurance options.
Posted Jul 4, 2019