Provincial breakdowns
When analyzing the effects of climate change on a more regional scales, provinces like Alberta and Saskatchewan experienced catastrophic increases of 494.96% and 302.13% in average annual insurable losses, respectively. Newfoundland also experienced a triple-digit increase of 158.92%.
Ontario and Manitoba took the fourth and fifth spots on the list, each having seen an 88.94% and 80.86% hike.
On the lower end of the spectrum, British Columbia only had a 6.25% increase, and for Quebec – 17.05%.
However, Nova Scotia and New Brunswick saw a 86.62% and 23.98% decrease, while there was no discernible difference spotted for Prince Edward Island.
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While some provinces experienced a neglible increase in climate-related damages, a financial impact was still felt. Every province still recorded some form of home insurance inflation, absorbing the overall risk of increased climate-related damages across the country.
In fact, climate-related disasters have cost an average Canadian around $409 per year in increased home insurance premiums in the last 10 years.
Home Insurance premiums have increased by 76% across Canada in the last decade, with Saskatchewan and Alberta having the highest increases at 106% and 90%, respectively.
Furthermore, in the last 40 years, Canada as a whole has averaged insurable damages of $1.82 billion, compared to the prior 30 years being only $380 million.
MyChoice gathered the info using data from the Canadian Disaster Database annd comparing the 10-year average of disaster-related annual insurable losses against the prior 30-year average, adjusted for inflation. The team also analyzed the Shelter Consumer Price Index data from the past 10 years to determine the home insurance inflation across Canada and compared it to current rates from its quote database.
Sources
1. Insurance Bureau of Canada: Four catastrophic summer events lead to record number of insurance claims (Sept 4, 2024)
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