Severe weather driving up insurance costs, expert warns

Those costs are ultimately passed on to consumers through higher premiums, while some homeowners could also see exclusions or limits added to their policies.

“If you are in a higher risk flood zone and you have a basement, that is not going to be insured,” Thistlethwaite said. “You may see restrictions on coverage for things like wildfires as well.”

The rising costs come as Saskatchewan continues to deal with significant weather-related insurance claims.

A June 9 hailstorm in Regina resulted in about 10,000 auto claims and 800 property claims, with total costs expected to exceed $80 million.

The 2025 wildfire season also resulted in 228,000 insurance claims across Canada and more than $8 billion in insured damage, according to the Insurance Bureau of Canada.

Thistlethwaite said insurance premiums are now increasing faster than inflation, with costs in Canada roughly doubling over the past decade.

He said the traditional insurance model is becoming less effective because it relies heavily on historical claims to predict future risk.

Climate change, aging infrastructure and development in high-risk areas are changing that risk profile.

“When losses happen in a particular area, the insurers are going to try and recoup from that similar risk profile,” Thistlethwaite said.

That means homeowners in areas with similar flood, wildfire or other weather risks could see their premiums increase even if their own properties have not experienced significant damage.

Thistlethwaite also warned homeowners not to assume their insurance policies cover all types of weather-related damage.

Overland flooding, for example, is not widely covered in Canada, and where coverage is available, it can be limited.

He encouraged homeowners to review their policies and speak with an insurance broker about what is and is not covered.

Thistlethwaite said governments also need to do more to provide homeowners with clear information about their individual risks.

Knowing whether a property is at high risk of flooding or wildfire could help homeowners make decisions about everything from insurance coverage to property improvements, he said.

That could include removing dead or dying trees, improving sump pump systems or taking other steps to reduce the risk of damage.

Thistlethwaite said insurance should increasingly be viewed as part of the affordability crisis facing Canadians.

“Insurance is becoming a part of the affordability crisis in this country,” he said.

He believes governments should put more money into preventing damage rather than focusing primarily on recovery after a disaster.

He pointed to research showing that one per cent of Canadian homes account for about 40 per cent of annual damages.

Rather than waiting for disasters to happen, he said governments could target those high-risk properties with investments designed to protect them.

“The steps, which are a lot cheaper, are to make sure the fire or the flood doesn’t happen in the first place,” Thistlethwaite said.

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With files from CJME/The Evan Bray Show

by CJME

Severe weather driving up insurance costs, expert warns

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