Experts issue warning about concerning trend driving up home insurance costs: 'Rapidly becoming a key financial factor'

It is no secret that wildfires are becoming an increasing threat around the world. As the United States Environmental Protection Agency states, "Multiple studies have found that climate change has already led to an increase in wildfire season length, wildfire frequency, and burned area." 

The fires pose a threat to the health and safety of all living things. But they are also having a drastic economic impact. 

What's happening?

Canadian Mortgage Professional reported that insurance premiums are rising rapidly in areas under significant threat from wildfires. For instance, in Kamloops, British Columbia, insurance premiums nearly doubled between 2023 and 2025 and are nearly five times the national average. 

"Homeownership costs are no longer just about mortgage payments — climate risk is rapidly becoming a key financial factor," explained Aren Mirzaian, CEO of MyChoice, which compiled the data alongside Wahi.

Why is this rise in prices important?

The burning of dirty fuels such as coal, oil, and gas releases toxic pollution into the atmosphere that contributes to the rising global temperature. A warming planet leads to an increase in the frequency and severity of these fires, which threaten both life and property.

Because of this increased threat, insurance premiums go up, making homes harder to afford. 

And this trend is unfortunately not just limited to Canada. It is estimated that between 2012 and 2021, average home premiums rose an astounding 36.5%.

This is also affecting where people choose to live. A survey from Zillow suggested homeowners are increasingly taking climate risks into consideration when deciding where to live. 

What's being done about these fires?

The most effective way to combat these premium increases is to take all possible steps to prevent environmental catastrophes. Educating yourself on critical climate issues is a great place to start. You can also take local action in your communities and elect pro-climate candidates who understand the severity of the threat at people's doors.

Continuing to move away from burning dirty fuel sources such as coal, oil, and gas that contribute to the severity of these fires and turning toward clean energy solutions such as wind, solar, and geothermal is also key.

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