If you’ve been following the news lately, you’ve probably noticed the trend- more extreme weather events, more claims, and more Canadians waking up to find their home insurance premiums or deductibles have quietly jumped. I’ve seen this play out firsthand with buyers, sellers, and even current clients who didn’t realize certain risks weren’t covered until they tried to make a claim.
This isn’t just an Alberta flood or BC wildfire problem anymore. In Ontario- Cambridge, Kitchener-Waterloo, Guelph, the GTA- insurance companies are tightening terms, raising deductibles, and in some cases, flat-out refusing coverage for high-risk areas. And that can absolutely affect your ability to buy, sell, or refinance a home.
What’s Actually Changing in Home Insurance
Here’s what’s showing up most often in my conversations with brokers and clients:
Overland flood coverage isn’t standard. If it’s not on your policy, you could be completely out-of-pocket for a basement flood caused by heavy rain or rising water.
Sewer backup is separate. This is another endorsement you have to add, not assume is included.
Deductibles vary by peril. A $1,000 deductible for fire or theft doesn’t mean you have the same for water damage- water/flood deductibles can be two, three, even five times higher.
Postal code risk mapping. Insurers track claims at a hyper-local level. If your neighbourhood’s had a run of water damage or wind claims, your renewal might change even if you’ve never filed a claim.
Mitigation is now a requirement, not a suggestion. Things like sump pumps (with battery backup), backwater valves, or fire-resistant materials are sometimes conditions for keeping certain coverage.
Why It Matters for Buyers and Sellers
When you’re buying, you need to know two things before you go firm:
Is the home eligible for overland flood and sewer backup coverage?
What’s the deductible for each type of loss?
When you’re selling, insurance availability can be a selling feature—or a deal-breaker. If your property has proper mitigation in place, show it off. Sump pump receipts, backwater valve installation records, even roof maintenance logs—these can give buyers confidence and make their broker’s job easier.
My Advice, Plain and Simple
Don’t assume. Ask. Get a written summary of your coverages and deductibles from your broker.
Audit at renewal. Compare this year’s policy to last year’s line-by-line. Look for changes in limits, exclusions, and deductibles.
Document your maintenance. Keep digital copies of before-and-after photos, repair receipts, and inspection reports.
Think like a buyer. If you wouldn’t buy a house without flood coverage, don’t assume your buyer will either.
Bottom Line
Weather-related losses in Canada topped $7 billion in summer 2024 - a record for any summer. Insurers are responding, and it’s not in the homeowner’s favour. Whether you’re buying, selling, or just protecting your current home, this is the time to be proactive, not reactive.
If you want to talk through how insurance eligibility might impact a property you own or are thinking about buying, call me. I’m not here to sell you insurance, but I will help you avoid buying a problem you didn’t see coming.
