Homeowners struggle to secure coverage as insurance rates surge: 'Costliest year'

Canadian homeowners are experiencing a widespread and steep surge in insurance rates year over year, making it difficult to find adequate coverage. 

What's happening?

Home insurance prices have risen about 25% on average across the country, according to a report by Canadian news outlet Salmon Arm Observer. This is being attributed to inflation and costs incurred from more frequent climate-related disasters.

"The number of claims are going up for personal property, that's a 115% increase last year," Randi Northeast, SASCU Credit Union wealth and insurance director, told the Salmon Arm Observer.

The price of repairing and replacing personal property destroyed by weather has also risen by 485% in the country since 2019.

In Canada, a record-breaking $8 billion was paid out to home insurance claims in 2024 due to damage caused by severe weather events. The Insurance Bureau of Canada called it "the costliest year for severe weather-related losses."

Why is it concerning?

Insurance companies raising rates and skirting regulations are becoming troubling problems worldwide. Human-caused pollution is overheating the planet and triggering more frequent and severe weather events such as hurricanes, tornadoes, wildfires, and floods.

The damage from these natural disasters is decimating communities every year, leading to more insurance claims than ever. Insurance companies are now driving up prices, dropping coverage, and pulling out of regions at risk altogether.  

What's being done about it?

Homeowners are doing their best to find the rates and plans that work for them, but it's difficult to shop around when companies frequently change their coverage and prices.

The same thing is happening in the U.S., and homeowners are dealing with insurers dropping them without warning and not receiving the money they were promised. Regulators are facing the fact that the current insurance model may not be sustainable unless climate change is addressed.

There are usually discounts for customers who stay loyal to the same company for multiple years and have no or few claims. Soft credit checks can also occasionally provide a discount, per the Salmon Arm Observer.

For more ways to stay informed and explore critical climate issues that could affect your home insurance, check out the TCD guide.

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