Can Severe Weather Increase My B.C. Home Insurance Premium?
July 7, 2025

Unfortunately for B.C. homeowners, severe weather can be a factor that increases home insurance premiums.
The cost of weather-related damages and insurance payouts have been going up steadily. The summer of 2024 now ranks as the most-destructive season in Canadian history for insured losses due to severe weather, causing billions of dollars in insured damages from floods, fires, and hail storms.
How can extreme weather increase home insurance premiums for B.C. homeowners?
As extreme climate events become more common, it might not be unusual to see your home insurance continue to go up as insurance claims and payouts increase as a result. Home insurance rates in British Columbia were generally increasing due to a rise in weather-related claims.
More frequent claims
More frequent extreme weather events like wildfires, floods, windstorms, and hurricanes cause widespread property damage, which leads to more frequent claims and costly insurance claims. This trend is a significant factor in pushing up the cost of home insurance.
Costs to rebuild and repair
Weather-related disasters usually drive up demand for repairs and rebuilding because these events can cause major damage to homes such as structural, roof, and wall damages, pushing up labor and material costs. These costs have been increasing in recent years.
Cost to reinsure a home after weather-related claims
The cost of insuring homes in British Columbia and Canada have risen in recent years due to the increasing frequency and severity of weather-related claims.
The cost of insuring homes has increased because insurance companies take into account the higher likelihood of weather-related claims. Payout claims due to severe weather are a significant factor that push up the cost of home insurance.
Inflation
Inflation affects home insurance because it increases the cost of expenses related to owning a home. When a homeowner makes an insurance claim inflation after a weather disaster, inflation usually affects the cost of rebuilding, impacting insurance rates.
Regional areas at risk
Areas prone to specific weather events, such as hailstorms in Alberta, often see higher premiums due to localized risks. Areas that are prone to floods may see exclusions or higher rates for flood insurance coverage.
Wildfires, drought, flooding and extreme temperatures continue to affect parts of B.C. every year.
Reinsurance
Insurance companies purchase reinsurance policies from other companies that specialize in covering large-scale risks to protect themselves from catastrophic events. When insurers face a higher likelihood of claims due to increased severe weather events, they need to pay more for reinsurance to ensure they can cover potential losses.
What to do
Improved infrastructure, such as municipal water and sewer systems, building codes that have flood-proofing, wind-resistant design, fire-resistant materials, and community preparedness programs can help lessen risks related to severe weather.
What weather events does home insurance cover?
Weather disasters typically covered by home insurance in B.C. include:
Windstorms: Damage from high winds, tornadoes, and hurricanes involving roof, siding, or window repairs.
- Hail: Roof, siding, and personal property damage caused by hailstorms
- Lightning: Fires or electrical damage due to lightning strikes
- Wildfires: Direct fire damage to structures and personal property.
- Ice storms: Most standard home insurance policies cover damage caused by ice storms, including roof damage from ice dams and burst pipes, provided the damage is sudden and accidental and not due to neglect or lack of maintenance.
Add-ons to your standard home insurance policy that aren’t automatically included in your home insurance policy:
- Overland floods: Rising water from lakes, rivers, or heavy rainfall
- Earthquakes
- Sewer backup: Water damage from backed-up drains or sump pump failures are often excluded from standard home insurance policies.
Landslides and avalanches are generally not covered by your home insurance policy.
What’s the trend for insurers and floods?
Insurance providers are increasingly offering overland flood endorsements for home insurance policies.
How can homeowners help reduce their insurance premium increases?
Disaster-proof your B.C. home
Install flood barriers or fire-resistant materials to help lower risk and potentially reduce premiums.
Flood insurance
As a B.C. homeowner, you can purchase overland flood insurance which is an add-on to your home insurance policy.
Overland flooding insurance is usually widely available for almost all homeowners, condominium owners, and tenants. It’s not always available for high-risk flood areas, but if it is available in your area, you should consider adding it to your home insurance policy.
What is extreme weather?
Extreme weather refers to unusual, severe, or unseasonal weather events, which usually cause major property damage. Extreme weather has been attributed to natural climate variability and climate change.
Examples include:
- Heat waves
- Cold snaps
- Droughts
- Wildfires
- Heavy precipitation
- Storms such as hurricanes and tornadoes
- Floods
- Landslides
When does Canada usually experience the most extreme weather-related events?
Spring and summer are usually the most active times for severe weather in Canada. These seasons bring conditions such as warm air, winds, and moisture, which are conducive to storms, wildfires, and floods.
Final thoughts
Understand what your B.C. home insurance covers and what it doesn’t cover when it comes to extreme weather. You’ll also need to understand your deductible limits. Make sure you have enough insurance to protect you, your family, and your home if a windstorm, wildfire, or flood impacts your area.
5 FAQs about extreme weather and home insurance
How does home insurance cover extreme weather?
Most standard home insurance policies in Canada cover damage caused by wind, hail, fire, and lightning.
What extreme weather events does home insurance not cover?
Overland flood insurance (for water entering from outside, such as rivers or heavy rain) is not included in most standard policies and must be purchased separately. Earthquake insurance and sewer backup insurance must also be purchased separately and added to your home insurance policy.
What should you do to make sure you have enough coverage for extreme weather?
You should review your home insurance policy to understand what is and isn’t covered and consider adding endorsements for overland flooding or earthquakes if you are at risk.
What happens if my B.C. home is in a high-risk area and I can’t get insurance coverage?
In some high-risk areas, private insurers may not offer flood, hail, or wildfire coverage, leaving homeowners vulnerable. The federal government is developing programs to make insurance more accessible and affordable for high-risk properties, but these were still in progress.
How is extreme weather affecting home insurance premiums?
The frequency and severity of extreme weather events, such as floods, wildfires, and storms, are driving up insurance claims and, as a result, premiums across Canada.
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