Climate risk driving insurance costs to new highs

Extreme weather is hitting Canada’s home insurance market hard.

A new Statistics Canada report shows that more frequent and severe disasters are pushing claims and premiums higher across the country.

Recent years tell the story: four natural catastrophes during the past five years rank among the 10 costliest on record.

Insurers are now paying about $2 billion per year on average in weather-related claims, compared to $400 million before 2009. Annual insured losses hit $3.4 billion in 2022 and $9.4 billion in 2024, while premiums continue to outpace inflation.

In response, the Insurance Bureau of Canada is urging both federal and all provincial governments to act, calling for stronger construction standards and financial incentives to help homeowners invest in climate-resilient upgrades.

While governments work through longer-term solutions, property managers don’t have to wait to take action. Ensuring landlords and tenants have adequate insurance coverage is a good first step, even as costs rise.

From there, practical upgrades like installing backwater valves or sealing basement entry points can help limit damage, especially in flood-prone areas like Ontario.

And just as importantly, maintaining clear communication with all landlords and tenants before, during, and after severe weather events can make a meaningful difference in both safety and recovery.