Home insurance rates likely to spike in 2025 following severe weather events, insurers warn [Video]

With 2024 being the single-most expensive year on record in terms of insurance payouts in Canada, following a swath of devastating weather-related disasters, insurers are warning that home insurance rates in 2025 are likely to increase significantly.

The Insurance Bureau of Canada says insurers paid out $8.55 billion in 2024, more than $2 billion more than 2016, the next worst year on record.

It came after hundreds of homes were obliterated by a wildfire in Jasper, Alta., and parts of the Greater Toronto Area were underwater from floods in what was a year of climate-driven disasters in Canada.

B.C. saw its fourth-worst wildfire season by total area burned last year, as well as a series of storms towards the end of the year that caused multiple deaths from flooding and landslides.

Insurers warn that the series of climate-induced calamities likely means insurance rates are going to go up this year, and they’re providing tips for homeowners who may be looking …