Severe weather events are causing insurance costs to soar for Canadian homeowners
Toronto: Extreme weather is really shaking things up for homeowners in Canada. Floods, wildfires, and other crazy weather are leading to huge insurance losses.
In fact, a report from RATESDOTCA says that in 2024, insured damages could hit over $7.8 billion. That’s more than double what we saw in 2023!
The Insurance Bureau of Canada (IBC) is also dealing with rising construction costs. Since 2019, those costs have jumped by 66%, and home replacement costs are up 24% too.
So, when it comes time to renew home insurance policies, folks might see their premiums go up, even if they haven’t made any claims.
Daniel Ivans, an insurance expert, emphasizes the importance of having enough coverage. With extreme weather becoming more common, it’s vital to be prepared for the worst.
He also points out that repairs can be super pricey and take longer due to labor shortages, especially after big disasters like floods or wildfires.
The report suggests shopping around for better rates when renewing your policy. Not all insurers will charge the same for the same coverage.
Plus, it’s worth noting that home insurers don’t need to get approval for rate increases like auto insurers do. This means they can change premiums whenever they want.
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