Disasters associated with climate change have driven home insurance premiums up 64 per cent over last 10 years in Ontario
Published June 2, 2021 at 10:44 am
Over the last 10 years, home insurance in Ontario has increased significantly due to climate change.
According to the latest analysis from RATESDOTCA, climate-change-related natural disasters have become more frequent and intense, causing the average cost of home insurance to more than triple the rate of inflation.
In Ontario, premiums have increased by 64 per cent, while, according to the Bank of Canada, inflation over the last decade totals just 17 per cent.
In 2011, the average home insurance premium in Ontario cost $782. By 2016, it had increased to $918, and this year, it’s ballooned to $1,284.
Additionally, personal property damage claims have also increased by 42 per cent nationwide over the last 10 years.
According to the Insurance Bureau of Canada, the cost associated with personal property claims has increased 213 per cent from $2.3-billion to nearly $7.2-billion.
Further, the economic cost of natural disasters has exceeded the 30-year average for seven of the past 10 years.
“Climate change is already having a direct financial impact on individual Canadian homeowners,” Jameson Berkow, managing editor of RATESDOTCA, said in a news release.
“Everyone should be motivated to take action on climate change, but this data should add even more incentive by putting a clear dollar value on the costs of inaction,” he continued.Insauga's Editorial Standards and Policies