Home insurance costs soar amid rising risks

Residential building construction costs in Canada have surged by 66% since 2019, significantly outpacing the 19% overall inflation rate, according to Statistics Canada. The Insurance Bureau of Canada (IBC) has warned that these soaring costs, combined with frequent natural catastrophes, are driving up home insurance premiums.

The October Consumer Price Index revealed a 24% rise in home replacement costs since 2019, with Alberta facing an even steeper 73% increase in construction costs due to severe weather events, including a historic hailstorm in Calgary.

“Canada’s insurers are playing a leading role in helping Canadians adapt to the impacts of severe weather and have been calling on all orders of government to take immediate action to mitigate the impacts of natural catastrophes and better protect communities moving forward,” said Craig Stewart, IBC’s vice-president of climate change and federal issues.