The high number and severity of weather-related events leading to damage and the soaring cost of construction is leading to pressure on the insurance industry to raise home insurance premiums. IBC’s National Director of Climate Change Advocacy, Jason Clark, notes that last year was the costliest year in Canada’s history for weather-related insured losses at $8.5 billion.

He points to the wildfires in California, saying, “What we will see as a result of these fires in Los Angeles is a question around insurability of homes being at real risk. With the increasing risk across the country, Canada’s property insurers are warning that regions of Canada could potentially face similar challenges in our future.”

Right now, about ten per cent of Canadian homes highly exposed to flooding aren’t eligible for flood insurance.  IBC is calling for the federal government to launch a national flood insurance program. Clark says these homeowners would then be able to access insurance at an affordable rate through a public-private partnership between government and the insurance industry. He suggests the program would reduce disaster costs to federal and provincial government treasuries, and adds that the U.K., the U.S. and France already have programs like this in place.

In the meantime, Clark advises that one thing governments of all levels can do is make sure new homes aren’t built on flood plains, and in areas where wildfires are a risk, make sure the homes are as fire safe as possible.  The IBC is also advocating for building codes that better protect homes and livelihoods. Clark advises homeowners to understand the risk for your area and then figure out what you can do. He says, “The most expensive home is the one you build twice.”