As extreme weather events lead to the largest year on record for insurance claims, home insurance rates are on the rise.
In 2025, home insurance rates have risen 5.28 per cent, well above the rate of inflation, according to a report published by My Choice Financial, a Canadian insurance aggregator and comparison website.
This rise follows the previous year’s increase, when rates rose 7.66 per cent.
While there are several factors, insurance experts say climate change is a major driving force.
“It’s driven historic insured losses across the country. Particularly, we had a very severe single quarter in 2024 where we saw over $7 billion in insured losses in that single quarter last summer,” said Jason Clark, the national director of climate change and federal issues at the Insurance Bureau of Canada.
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The Insurance Bureau of Canada reports record-breaking losses of $8.5 billion paid out in 2024, triple that seen in 2023, and 12 times the annual average between …