Canadian home insurance premiums increased by 45% between December 2019 and December 2025 [1, 2].
The spike reflects the growing financial burden on homeowners as a changing climate increases the frequency and severity of natural disasters. This trend suggests that the cost of living in high-risk areas is becoming unsustainable for many policyholders.
According to Statistics Canada, the rise in premiums is directly linked to the increase in extreme-weather-related claims [2]. The data covers a six-year period ending in December 2025 [2]. While residential properties saw the steepest climb, passenger vehicle insurance premiums also rose by 23.9% during the same timeframe [2].
Mike Le Couteur of CTV News said home insurance premiums have gone up 45% since 2019 due to the frequency of extreme weather-related claims [1].
The geographical scope of the damage is vast. Reports indicate significant impacts from wildfires in British Columbia and the Northwest Territories, floods in Manitoba, and heat waves across Eastern Canada [3]. These events have created a cycle of repeated losses that force insurers to adjust their pricing models to maintain solvency.
Industry analysts said that the volume of claims is outpacing previous projections. As weather patterns become more volatile, the insurance sector is struggling to price risk accurately for a wide range of Canadian provinces.
“Home insurance premiums have gone up 45% since 2019”
The sharp rise in premiums indicates that the insurance industry is factoring long-term climate volatility into current pricing. As extreme weather events like wildfires and floods become more frequent, Canada may face a growing 'insurance gap' where certain high-risk regions become uninsurable or unaffordable, potentially impacting real estate values and government disaster relief spending.
