Home insurers are not restricted by geographical area. Homeowners may also be able to save by purchasing insurance coverage with a company that is not in their immediate location. Shopping around for better deals instead of just renewing your policy annually.
With many in California losing their livelihoods after being unable to get insurance, the fear is British Columbians could soon be in trouble too. Calgary’s hailstorm, Quebec’s flooding, the Jasper wildfire, and storms and wildfires in B.C. last year all added to that total.
Extreme weather is not the only factor in the rising premiums. Statistics Canada data shows that residential building construction costs have risen 66 per cent. Home replacement costs have risen 24 per cent from 2019, compared with a 19 per cent general inflation rate during the same time period. Claims have increased 115 per cent over the last five years and the costs for repairing and replacing personal property have risen nearly 500 per cent.
The home insurance industry is experiencing record claims losses while at the same time facing the challenge of rising replacement costs. The result is likely to be higher home insurance premiums for consumers this year when their policies renew, even if they haven’t made any claims.
Insurers say Canada is not doing enough to prevent disasters.
“That means investing in risk mitigation member measures. That means investing in first responders in this country, and that means investing in the corresponding infrastructure that enables us to be more resilient and prepared for the next wildfire, for the next flash flood, for the next hurricane,”
“Insurance is a pooling of risk, and so when claims go up, costs go up,” said Daniel Ivans, insurance expert for Rates.ca
