Home insurers tighten coverage and raise prices as weather risks rise

Canadian home insurers are increasing premiums and restricting some coverages as extreme-weather claims and insured losses have risen sharply in recent years, according to industry reports and officials.

Canada's home insurance market is seeing higher prices and narrower coverage as extreme weather drives up claims and costs. Industry reports and company statements say insurers have responded by raising premiums, increasing deductibles, and limiting or excluding some risks. Insurers are also shifting new business and reducing concentration in higher-risk regions. Government work to improve flood maps and industry efforts to rebalance portfolios are part of the response. Notable facts: - Insurers have raised premiums above inflation and in some cases increased deductibles; the article reports some deductibles rising up to $10,000 for perils such as hail. - The article cites a record $9.4 billion in insured losses in 2024 and notes industry estimates that catastrophic weather events have averaged about 15 per year recently, up from around two per year in the 1980s. - The article mentions that firms such as TD and Definity say they have moderated exposure in higher severe-weather zones and are shifting new business away from areas with higher peril scores, while the federal government is investing in updated flood maps. Summary: Rising claims and losses have led insurers to tighten coverage and raise costs, which affects availability and affordability for some households. Reported next steps include ongoing insurer portfolio rebalancing and federal work on flood mapping; broader outcomes are undetermined at this time.