If your home insurance renewal came in higher this year, you are not alone. Premiums have been rising across much of Canada, and a big reason is the cost of severe weather.
What happened this summer
The Insurance Bureau of Canada (IBC) reported that summer 2026 caused more than $3.7 billion in insured losses. After adjusting for inflation, that makes it the third-costliest summer on record, behind 2024 and 2013. Four of the five costliest summers have happened in the last six years.
The losses came from several places:
- Storms on the Prairies, including flooding, wind and hail, were the largest source at about $1.8 billion.
- Wildfires in British Columbia added about $550 million.
- Flooding in the Niagara Region cost about $360 million.
- Heavy rain in Montreal and Ottawa caused large losses, much of it from basement flooding.
When insurers pay out more in claims, premiums tend to follow. That is true even for homeowners who have never made a claim.
Why this matters at renewal
When a bill goes up, it is natural to look for ways to bring it down. Some households do that by trimming coverage. Before changing anything, it helps to understand what your policy actually covers, because the answer is different for every policy and every insurer.
Questions worth asking about your own policy
- Water damage. Is sewer backup covered? Is overland flooding (water coming in from outside, such as a rising river or heavy runoff) covered? These are often separate options rather than part of a basic policy, and what is available can depend on where you live. Ask what the limits are.
- Deductibles. Is your deductible the same for every kind of claim, or do some types of damage have a different one? A higher deductible usually lowers the premium, but it also means you pay more yourself when something happens.
- Rebuilding costs. Does your coverage reflect what it would cost to rebuild your home today, not what you paid for it? Building costs have changed a lot in recent years.
- Your belongings. Are the limits for your belongings still enough, and are there caps on certain items such as jewellery or electronics?
- Exclusions and conditions. Does your policy exclude anything related to the risks in your area, or require things like a working sump pump or a backwater valve?
Where to get answers
Your insurer, broker or a licensed insurance advisor can explain what your own policy does and does not cover, and what changing it would mean. It is worth asking before the renewal date, not after a loss.
If you would like to talk to a licensed insurance advisor about your coverage, you can send a request through AdvisorPro and we will connect you with one.
This article is general information only. It is not insurance advice, and it does not take your own circumstances into account. Coverage, availability and cost vary by insurer, home and province.
Source
- Summer 2026 cost insurers $3.7 billion, third-worst on record: IBC (Insurance Business, October 22, 2026)