Canadian homeowners are experiencing a significant increase in home insurance rates, with prices rising by about 25% on average across the country. According to a report by the Salmon Arm Observer, this surge is largely attributed to inflation and the growing costs associated with more frequent climate-related disasters.
Randi Northeast, the wealth and insurance director at SASCU Credit Union, noted that there has been a 115% increase in personal property claims in the previous year. The cost of repairing and replacing personal property damaged by severe weather events has also seen a substantial rise of 485% since 2019. In 2024, Canada witnessed a record-breaking $8 billion in home insurance claims due to damage caused by severe weather, marking it as “the costliest year for severe weather-related losses” according to the Insurance Bureau of Canada.
The situation is concerning as insurance companies not only raise rates but also drop coverage and pull out of regions at high risk altogether. This trend is not limited to Canada, as similar issues are being observed in the U.S., where homeowners are facing challenges such as insurers dropping them without warning and failing to pay out promised claims.
Regulators are beginning to acknowledge that the current insurance model may not be sustainable unless measures are taken to address climate change. Homeowners are advised to shop around for insurance plans, though this has become increasingly difficult due to frequent changes in coverage and pricing by insurance companies. Some insurers offer discounts to loyal customers with few or no claims, and in some cases, soft credit checks can lead to reduced premiums.
As the situation continues to evolve, it’s crucial for homeowners to stay informed about climate issues that could impact their insurance. For more information on critical climate issues and ways to stay prepared, resources are available through climate advocacy groups and government initiatives.
Understanding the Impact of Climate Change
The increasing frequency and severity of weather events such as hurricanes, tornadoes, wildfires, and floods are directly contributing to the rise in insurance claims. As human-caused pollution continues to overheat the planet, these events are expected to become more common, further straining the insurance industry.
Steps Homeowners Can Take
To mitigate the impact of rising insurance rates, homeowners can explore various strategies:
- Shop around for insurance quotes regularly
- Maintain a good claims history
- Consider insurers that offer discounts for loyal customers or soft credit checks
By staying informed and taking proactive steps, homeowners can better navigate the challenges posed by the current insurance landscape.
For more ways to stay informed and explore critical climate issues that could affect your home insurance, check out the TCD guide.
