How climate change may affect your home insurance needs

Across Canada, countless communities have been affected by climate change, as heatwaves, fewer extreme cold periods, longer growing seasons, and shorter ice and snow seasons become more common than ever before. These changes have led to an increase in severe weather events, including floods and wildfires. While some areas — like northern and coastal regions — are at a higher risk of experiencing devastating weather events, every Canadian should be aware of the impacts that climate change may have on their home and family, now and in the future.

As severe weather becomes more common all year round, the risk of damage to infrastructure, businesses, and homes will only continue to increase. Make sure you and your family stay prepared and protected by assessing your home insurance needs and making updates as needed:

• Purchase additional coverage for water damage. More and more homeowners are facing water damage, the leading cause of home insurance claims. But overland water, sump pump failure, and sewer backup damage usually aren't covered under standard water damage coverage. Reach out to your licensed insurance broker to update your policy with any available water-damage add-ons that you're eligible for.
• Take inventory of your high-value items. In the event of a wildfire or flood, your home and your many valuable keepsakes are at risk of being lost for good. Take time to put together a detailed inventory of your high-value items, including jewellery, antiques, art, and that old record collection, so you'll know if you need to increase your home insurance policy's coverage limit.
• Consider increasing your coverage limits. While the likelihood of your home being damaged or destroyed by a severe weather event may be slim, it's better to be safe than sorry. Whether it's protecting your home against fire, water damage, hail, or lightening, reevaluate your coverage limits to make sure your insurance will sufficiently cover the cost to rebuild in case of a major natural disaster.
• Budget for potential home insurance premium increases. Due to the spike in severe weather events, rising inflation, and heightened prices for building materials, the cost of home insurance is also on the rise. Budgeting can help you stay protected, even if your home insurance premiums go up when it's time to renew your policy.

As climate change increases the frequency of severe weather, it may be time to update your home insurance coverage — like increasing your coverage limits in the event of a major storm, wildfire, or flood.

Be proactive about protecting your home

Alongside changing up your home insurance coverage, there are many actions you can take to prevent or reduce damage in the event of severe weather. Some of these preventive measures may also help you secure a discount on your home insurance, so talk to your broker if you decide to implement any of these safety measures:

• Install a backwater valve or sump pump in your basement to reduce your risk of water damage
• Prune weak or dead branches so they can't fall and cause damage during a powerful storm
• Check that your gutters and downspouts are clear and pointed away from your home to deter water damage
• Consider installing smart water detectors around your home to alert you if water is starting to seep in through window frames or the foundation of your home
• Avoid planting flammable plants, like coniferous trees, close to your home and keep your lawn clear of dead leaves and other plant debris to reduce your risk of damage from a wildfire

You can protect your home from severe weather events by installing a backwater valve or a smart water detector. Bonus — this can help you qualify for discounts on your home insurance!

As climate change increases the frequency and severity of major storms across Canada, it's a good time to reevaluate whether your home is properly protected. To make sure you have the right coverage for today and the future, get in touch with a licensed insurance broker.

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