Home insurers raise prices and limit coverage as weather worsens

Insurers in Canada are raising premiums, increasing deductibles and narrowing coverage after rising extreme-weather losses, and some companies are shifting new business away from higher-risk areas.

Canada's home insurance landscape is tightening as the costs tied to extreme weather have climbed. The article reports insurers are responding by raising premiums, increasing deductibles and narrowing or excluding some coverages. Some firms are also rebalancing portfolios to reduce exposure in higher-risk regions. Officials and analysts cited recent large insured losses and ongoing efforts to improve risk data, including federal spending on updated flood maps. Known developments: - The article reports a record $9.4 billion in insured losses in 2024 and a rise in average annual catastrophic events compared with past decades. - Insurers are increasing premiums and raising deductibles for perils such as hail, with some deductibles reported as high as $10,000 for certain risks, according to the article. - The article mentions TD and Definity have rebalanced where they write business, shifting growth toward lower catastrophe risk areas and reducing concentrations in higher-peril zones. - The Insurance Bureau of Canada is cited as estimating about 1.5 million households lack access to flood insurance, and Statistics Canada data show home insurance costs rose about 31% between 2021 and 2025. Summary: Rising extreme-weather losses have led insurers to tighten coverage and raise costs, which the article says is affecting availability and affordability for some homeowners. The industry is described as having withstood recent losses but the trajectory of policy access and pricing going forward is undetermined at this time.