Catastrophic weather and climate events have become more frequent in Canada, raising concerns about homeowners' preparedness. A recent Léger poll for Allstate Insurance Company of Canada found that only 27% of Canadian homeowners surveyed are very confident that their homes are ready for severe weather events such as tornadoes, flooding, wildfires, or hail.
Allstate data shows that 29% of claims received over the last 10 years were related to such events, highlighting the growing risks. In 2024, the number of claims from severe weather was particularly high, with approximately 2.4 times more claims than in 2023. This increase signals a concerning trend in weather-related damage and underscored the importance of adequate insurance coverage.
The Insurance Bureau of Canada (IBC) reported that 2024 set a new record for the costliest year for severe weather-related losses in Canadian history, totaling over $8.5 billion. As these events become more frequent and intense, homeowners are facing mounting financial risks. Many may not realize that their insurance policies may not be sufficient to cover the full scope of damage caused by severe weather.
"Large weather and climate events are affecting more Canadians more often, year after year," said Odel Laing, agency manager at Allstate Canada. “Insurance coverage can help people recover their homes and vehicles following a severe storm or wildfire, but family heirlooms, photographs, and other personally important items are more difficult to replace. So, taking steps to prevent or reduce the risk of damage is key.”
Experts warn that many homeowners may be underinsured, especially in areas prone to extreme weather. Homeowners are advised to regularly review their insurance policies to ensure they have adequate coverage. Policies should reflect the current value of property and possessions, and include protection against risks like flooding or wildfires, which may not be covered by standard insurance.
Laing suggested homeowners take proactive steps to reduce the risk of damage, such as reinforcing homes against floods, clearing dry vegetation to prevent wildfires, and installing flood-prevention measures like sump pumps. Regularly updating insurance coverage and adopting preventative measures can help homeowners better prepare for the financial impacts of extreme weather events, ensuring quicker recovery and less financial strain.
