New Brunswickers’ home insurance rates increased by 2.5% in March, which equates to an astonishing 36% jump in a mere 36 months, CBC reports.
The national average has only risen by 17%, according to Statistics Canada.
When placed in a larger context, New Brunswick residents saw their home insurance rates climb 98% since 2002, more than four times the Canadian inflation rate.
As a result, homeowners are beginning to cancel policies, even though heightened instances of extreme weather make disaster-related claims increasingly likely.
The province’s consumer advocate told the news outlet that he is asked about this phenomenon from New Brunswick homeowners more and more frequently as time progresses.
"We're getting calls about premiums going up and about trouble obtaining coverage for a reasonable premium," said Ronald Godin. "We have noticed that in the last couple of years."
While some critics point out that home insurance, unlike auto, is not regulated or subjected to price controls by provincial government, others shed light on the fact that water damage claims are becoming increasingly common because of floods and roof leaks.
In fact, the CBC reports that home insurance rates in Nova Scotia have risen by 37% in the past three years, although in Prince Edward Island, that figure falls to a 14.3% increase.
The
Insurance Bureau of Canada (IBC) estimates that home insurance claims in New Brunswick reached $698.5 million over the last five years, up $127 million over the five prior to that.
"Right across the board severe weather and water creeping into homes is definitely something we're seeing," IBC's Atlantic vice-president Amanda Dean told the outlet.
