In 2024, severe weather caused record-breaking property damage across Canada. Home owners and insurers are reeling from the impacts of multiple disasters, including floods in Toronto, Southern Ontario, British Columbia and Quebec; the wildfire in Jasper, Alta.; and a hailstorm in Calgary. Together, these events totalled $8.5 billion in insured losses, reports the Insurance Bureau of Canada (IBC): “For the first time in Canadian history, insured damage caused by severe weather events surpassed $8 billion.”
Those losses come on top of sky-high claims in recent years. Between 2009 and 2020, Canadian insurers spent an average of $2 billion annually on losses related to natural catastrophic events (those resulting in insured losses of $25 million or more)—more than four times the average of $422 million paid out annually from 1983 to 2008, according to the IBC. In 2022, insured damage for severe weather events reached $3.1 billion. In 2023, losses again hit $3.1 billion. As noted above, claims in 2024 eclipsed that figure, with the year-end tally at $8.5 billion.
Canadians are no strangers to severe weather, but something has shifted in recent years. The impacts of these events are being felt more strongly and, according to the IBC, the summer of 2024 stands out as the most destructive season in Canadian history for insured losses due to wildfires, floods and hailstorms. In just two months, July and August, four catastrophic weather events resulted in over $7 billion in insured losses and more than a quarter of a million insurance claims— 50% more than Canadian insurers typically receive in an entire year.
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Although they’re not weather-related, earthquakes are another natural disaster we can’t ignore. Canada averages over 4,000 per year, most too small to be felt, reports the IBC. British Columbia is most prone to earthquakes, but they’re also frequent in the Ottawa and St. Lawrence valleys, in New Brunswick and off Newfoundland. A large earthquake near a populated area could cause a significant amount of damage—affecting local and national GDP. (Earthquake home insurance is available—ask your insurer.)
Watch: Home Insurance & Climate Change
Those losses come on top of sky-high claims in recent years. Between 2009 and 2020, Canadian insurers spent an average of $2 billion annually on losses related to natural catastrophic events (those resulting in insured losses of $25 million or more)—more than four times the average of $422 million paid out annually from 1983 to 2008, according to the IBC. In 2022, insured damage for severe weather events reached $3.1 billion. In 2023, losses again hit $3.1 billion. As noted above, claims in 2024 eclipsed that figure, with the year-end tally at $8.5 billion.
Canadians are no strangers to severe weather, but something has shifted in recent years. The impacts of these events are being felt more strongly and, according to the IBC, the summer of 2024 stands out as the most destructive season in Canadian history for insured losses due to wildfires, floods and hailstorms. In just two months, July and August, four catastrophic weather events resulted in over $7 billion in insured losses and more than a quarter of a million insurance claims— 50% more than Canadian insurers typically receive in an entire year.
Get personalized quotes from Canada's top home insurance providers.*
Home insuranceRenters insuranceCondo insurance
You will be leaving MoneySense. Just close the tab to return.
Other factors shaking up policies
Although they’re not weather-related, earthquakes are another natural disaster we can’t ignore. Canada averages over 4,000 per year, most too small to be felt, reports the IBC. British Columbia is most prone to earthquakes, but they’re also frequent in the Ottawa and St. Lawrence valleys, in New Brunswick and off Newfoundland. A large earthquake near a populated area could cause a significant amount of damage—affecting local and national GDP. (Earthquake home insurance is available—ask your insurer.)
Watch: Home Insurance & Climate Change