Extreme weather is a growing concern across Canada, affecting homeowners from coast to coast. Whether it’s intense winds, damaging hail, torrential rain, or wildfires, the impact of extreme weather is becoming increasingly severe. As these events become more frequent and destructive, ensuring your home is properly protected has never been more important.
Understanding the Rising Costs of Home Insurance
Home insurance premiums are primarily based on the likelihood of making a claim (claims frequency) and the potential cost of that claim (claims severity). Variables such as your home’s location, age, and type of residence (detached, townhouse, etc.) also influence your premium.
The rise in extreme weather events increases the risk of weather-related property damage. As a result, home insurance premiums are climbing, particularly for homeowners in areas prone to flooding or wildfires. For instance, those living in flood-prone regions may face higher costs for water-damage coverage.
Other Factors Contributing to Higher Premiums
In addition to extreme weather, the rising costs of building materials and labor required for repairs are also driving up home insurance premiums in Canada. As these events’ frequency, severity, and cost escalate, homeowners face higher financial burdens.
Why Comprehensive Insurance Coverage Matters
Given the unpredictable nature of extreme weather in Canada, having the right insurance coverage is crucial. Your standard homeowner’s policy may cover damage from wind or forest fires, but it typically does not include overland flood coverage. If you live in a flood-prone area, consider purchasing additional coverage to protect your home.
Tips for Protecting Your Home and Lowering Insurance Costs
There are steps you can take to safeguard your home and potentially reduce your insurance premiums:
- Weather-Proof Your Home: Seal windows and doors, install storm shutters, ensure your roof is in good condition, and keep your yard free of debris.
- Upgrade Your Home: Consider installing a new sump pump or replacing an aging roof to mitigate weather-related damage.
- Additionally, installing smart home monitoring systems not only helps deter burglary, but it can also alert you to water leaks, carbon monoxide, or smoke. As a result, you may even earn a discount on your insurance.
- Stay Informed: Some insurance companies, like TD Insurance, offer severe weather and safety alerts with tips on how to prepare for extreme conditions.
What to Do If Extreme Weather Strikes
If your home is affected by extreme weather, prioritize safety first. Once everyone is safe, start your home insurance claim. Many providers, including TD Insurance, allow you to file a claim online, via an app, or over the phone.
Source: www.newscanada.com