What Ottawa Residents Need to Know
From the biggest auto insurance overhaul in decades to surging home insurance premiums driven by climate risk, 2026 is a critical year for Ontario policyholders. Here is your complete guide to what is changing and what to do about it.
If you drive a car or own a home in Ontario, 2026 brings changes you need to know about. On July 1, 2026, the province is making major changes to auto insurance. Several accident benefits that used to come standard with every policy are becoming optional add-ons. If you do not actively choose to keep them, you could end up with far less protection than you have today.
At the same time, home insurance costs are climbing fast. More severe weather is hitting Canada harder every year, and insurers are passing those costs on to homeowners.
At Oegema, Nicholson & Associates, our brokers have been following these changes closely. This guide breaks down what is happening, what it means for you, and what to do before your next renewal.
Ontario Auto Insurance Changes in 2026
The biggest auto insurance change in Ontario in decades takes effect on July 1, 2026. Here is what is happening, what it means for your policy, and who is most affected.
2026 SABS rehabilitation
Ontario’s auto insurance system includes something called the Statutory Accident Benefits Schedule, or SABS. It is the part of your policy that pays out if you are hurt in a car accident, regardless of who caused it. Right now, it covers things like lost income, rehab costs, and help around the house while you recover.
Starting July 1, 2026, most of those benefits will no longer be automatic. You will have to choose to add them to your policy and pay extra for them. Drivers who do not take action could be left with very little financial support after a serious accident.
Important: Renewal vs. New Policy
If your policy renews on or after July 1, 2026, your current benefits will carry over automatically unless you choose to remove them in writing. You will not lose coverage just by doing nothing at renewal.
If you buy a new policy on or after July 1, 2026, only the basic required benefits will be included. You will need to add any optional benefits yourself when you sign up.
Which Benefits Are Changing?
The table below shows each benefit that is changing, what it covers, and what happens if you do not add it back to your policy after July 1, 2026.
| ACCIDENT BENEFIT | BEFORE JULY 1, 2026 | AFTER JULY 1, 2026 | WHAT IT COVERS |
| Medical, Rehabilitation & Attendant Care | Mandatory | Mandatory | Covers medical expenses, therapy, and personal care support beyond OHIP. Higher limits are available as an optional add-on. |
| Income Replacement Benefits (IRB) | Mandatory | Optional | Replaces a portion of lost wages after an accident. Without it, injured workers have no income protection built into their auto policy. |
| Non-Earner Benefits (NEB) | Mandatory | Optional | Provides financial support to people who do not earn a wage, such as students, retirees, and stay-at-home parents. |
| Caregiver Benefits | Mandatory | Optional | Pays for someone to look after your dependents if your injuries prevent you from doing so. |
| Housekeeping & Home Maintenance | Mandatory | Optional | Covers the cost of hiring someone to clean your home and handle basic maintenance while you recover from your injuries. |
| Death & Funeral Benefits | Mandatory | Optional | Pays a lump sum to your family and covers funeral costs if you die in an accident. |
| Educational & Visitor Expenses | Mandatory | Optional | Covers lost tuition costs for students and helps pay for family members to visit you in the hospital during recovery. |
Important Note: Under the new rules, optional benefits only apply to you, your spouse, your dependants, and any drivers specifically listed on your policy. If someone else borrows your car and gets into an accident, they may not be covered by your optional benefits. Make sure your policy lists everyone who regularly drives your vehicle.
Ontario Home Insurance Changes in 2026
While the auto insurance changes are getting most of the attention, home insurance is its own story. Premiums across Ontario have been rising fast, and the reasons are not going away.
Why Are Home Insurance Premiums Going Up?
In 2024, insured weather losses in Canada hit a record $9.4 billion. That is more than double anything seen in previous years. In 2025, losses came in at over $2.4 billion. That is still one of the worst years on record. Big loss years are no longer rare events. They are now expected.
Insurance companies actually lost money on home insurance in both 2023 and 2024. They paid out more in claims than they collected in premiums. That is why rates keep going up. The math simply does not work any other way.
What Insurers Are Doing Differently
Insurers are not just charging more. They are also changing what they will and will not cover. Here is what Ottawa homeowners are seeing at renewal:
- Higher deductibles: The old standard of $500 to $1,000 is being replaced by much larger amounts, sometimes $2,500, $5,000, or $10,000 for water damage and storm-related claims.
- Tighter requirements to get coverage: Many insurers now ask for proof that your home has a backwater valve, updated roofing, or a working sump pump before they will offer you a policy.
- Pulling back from high-risk areas: Some large insurers have started reducing the number of policies they write in flood-prone or storm-prone regions. Canada has not reached the point where coverage is completely unavailable like in parts of the United States, but we are seeing early warning signs.
- Higher rebuild costs: U.S. tariffs on Canadian lumber and steel have pushed construction costs up. When a home is damaged, it costs more to fix. That drives up claim costs, which drives up your premium.
What Does This Mean for Ottawa Homeowners Specifically?
Ottawa Pays Less Than Most Ontario Cities, But That Is Changing
Compared to the rest of Ontario, Ottawa residents have generally paid less for insurance. The average Ottawa household spends about 3% of their after-tax income on combined home and auto insurance. In Toronto, that number is 5%. Ottawa benefits from lower auto theft rates and less traffic congestion than the GTA, which keeps auto premiums down.
But Ottawa is not immune. Between 2022 and 2025, Ottawa households saw a 35% increase in combined premiums. Flooding is a big reason for that, and the risk is only growing.
Ottawa’s Flood Risk Is Real and Growing
Ottawa is located where the Ottawa River, the Rideau River, and the Jock River all meet. That makes large parts of the city vulnerable to seasonal flooding, especially in the spring. Local conservation authorities are updating their flood maps right now, and the City of Ottawa is using those maps to revise zoning rules.
If your property gets newly added to the official flood zone maps, you may face higher premiums, a denial of overland water coverage, or restrictions on building permits. If you own property near any of Ottawa’s rivers, it is worth checking the City of Ottawa’s online flood map to see if your address is affected.
What Ottawa Residents Should Do Before July 1, 2026
You still have time to get ahead of these changes. Here is a simple checklist to work through before July 1, 2026.
- Find out when your auto policy renews. If it renews on or after July 1, 2026, your current benefits carry over unless you remove them. But it is still worth reviewing what you have before that happens.
- Ask yourself what happens if you cannot work. If the answer is serious financial trouble, income replacement and related optional benefits are not nice-to-haves. They are essential. Do not drop them without talking to your broker first.
- Do not choose coverage based on price alone. The extra cost of keeping optional benefits is usually small. The cost of not having them after a serious accident can be enormous.
- Check your home insurance deductibles. Find out what your deductible is for water and storm damage. If it has gone up or is about to, ask your broker about options. Installing a backwater valve or a sump pump can sometimes help bring costs down.
- Check your flood zone status. Use the City of Ottawa’s online flood plain map to see if your property is in a designated flood zone. If it is, bring that to your next broker conversation.
- Call your ONA broker. The July 1 changes are complicated. Your broker can walk you through your options, help you figure out which benefits matter most for your situation, and make sure both your auto and home coverage are set up correctly.
Frequently Asked Questions
What exactly happens to my Ontario auto insurance on July 1, 2026?
Ontario is switching to a more flexible auto insurance system. After July 1, 2026, only medical, rehabilitation, and attendant care benefits are required by law. Benefits like income replacement, non-earner, caregiver, and death and funeral are no longer automatic. You will need to add them yourself and pay extra to keep them. If your policy renews on or after July 1, your current benefits stay in place unless you choose to remove them in writing.
Will my premiums go down because of these SABS changes?
At this point, it is not clear. Reducing mandatory coverage could lower costs in the short term, but many experts think the savings will not last. People without accident benefits are more likely to sue the at-fault driver instead. That increases liability claims over time, which pushes premiums back up. Any short-term savings from dropping optional coverage need to be weighed against the risk of having nothing after a serious accident.
What is the OPCF 47R and why does it matter?
The OPCF 47R is a new form that replaces the old OPCF 47 starting July 1, 2026. It fixes a problem in the old rules where sending your claim to the wrong insurer by mistake could cause you to lose access to optional benefits you paid for. The new form protects you from that. Your optional coverage stays with you even if your claim gets directed to the wrong place first. Your ONA broker will make sure this is set up correctly on your policy.
Why is my home insurance premium going up so much?
Ontario home insurance premiums have gone up 84% over the past decade. The main reason is the rising cost of weather-related damage. Canada set a record in 2024 with $9.4 billion in insured weather losses, and insurers actually lost money on home insurance in both 2023 and 2024. On top of that, it now costs more to repair or rebuild homes because of higher lumber and steel prices. All of that gets passed on through higher premiums.
My property is near the Ottawa River. What should I do about flood coverage?
Ottawa sits where three major rivers meet, which puts a lot of the city at risk of flooding. Start by checking the City of Ottawa’s online flood plain map to see if your address falls in a designated flood zone. If it does, you may face higher premiums or limits on your coverage. Talk to your ONA broker about what flood protection is available on your current policy, what the deductible looks like, and whether upgrades like a backwater valve or sump pump could help you keep your coverage affordable.
Talk to an Ottawa Insurance Broker Who Knows What Is Coming
The 2026 changes to Ontario insurance are significant. At Oegema, Nicholson & Associates, our brokers know the new rules and are ready to help you figure out the right coverage for your situation, whether that is auto, home, or both.
