The effects of extreme weather on your home insurance premium

(NC) The words “extreme weather” can take on different meanings across Canada, but whether it’s intense winds or damaging hail, the reality is extreme weather is on the rise. From torrential rain to wildfires, ensuring your home is properly protected is more important than ever.

Insurance premiums are generally based on the likelihood of making a claim (claims frequency) and its potential cost (claims severity). Factors like your home’s location, age of the building and type of residence (detached, townhouse, etc.) also play a role.

Since extreme weather can increase the risk of weather-related property damage claims, it can also impact home insurance premiums. For example, homeowners in flood-prone areas may pay more for water-damage coverage.

In addition to extreme weather, rising costs of building materials and labour needed to repair property damage has increased the average home insurance premium in Canada.

Extreme weather in Canada is growing in frequency, severity and cost, with overland flooding and wildfires significantly contributing to home damages. Ensuring you have the right insurance coverage is crucial. Your homeowner’s policy may already cover damage from extreme weather caused by things like wind or forest fires. However, basic water-related damage policies do not include overland flood coverage. It’s important to consider additional coverage if you live in a flood-prone area.

To protect your home and lower insurance costs, you can take preventive measures like weather-sealing windows and doors, installing storm shutters, ensuring your roof is in good condition and keeping your yard free of debris. Some companies, including TD Insurance, offer severe weather and safety alerts with tips on how to prepare for them.

Installing smart home monitoring not only helps to deter burglary but can also alert you to water leaks, carbon monoxide or smoke, and potentially earn you a discount on your insurance. Newer homes typically have lower premiums but making upgrades to older homes to mitigate weather-related damage, such as installing a new sump pump or replacing an aging roof, can also help lower premiums.

If your home is affected by extreme weather, ensure everyone’s safety first. After confirming everyone is safe, start your home insurance claim. Many insurance providers, including TD insurance, allow you to start a claim online, via an app or over the phone.