Why is home insurance going up? In Canada, three forces explain most of it: costlier severe weather, higher rebuilding costs and frequent water claims. Insurers are paying more for claims, and premiums follow. In Q2 2026, quoted property premiums were 5.8% higher than a year earlier nationally, and 11.9% higher in Alberta.
Why is home insurance going up? The short answer
Home insurance is going up because claims cost more. Severe weather losses from hail, wildfire, flood and ice storms hit a record in 2024. Rebuilding a home costs more than it did before 2020, and water damage keeps claims coming. The Applied Rating Index shows quoted property premiums up 5.8% nationally in Q2 2026, year over year.
The long view tells the same story. Statistics Canada found that prices for homeowners' home and mortgage insurance rose 45.0% from December 2019 to December 2025. Over the same six years, the all-items Consumer Price Index rose 21.0%. Home insurance rose more than twice as fast as prices in general.
Statistics Canada names extreme weather claims as a major driver. It also points to house prices, replacement costs, building input prices and wages. And its study found that home insurance is more affected by extreme weather claims than car insurance.
Catastrophe losses: hail, wildfire, flood and ice storms
The Insurance Bureau of Canada (IBC) reports each year's insured severe-weather losses in January, using figures from Catastrophe Indices and Quantification Inc. (CatIQ).
| Year | Insured severe-weather losses (IBC's first estimate) | How IBC described the year |
|---|---|---|
| 2023 | More than $3.1 billion | Fourth-worst year for insured losses at the time |
| 2024 | More than $8.5 billion | Costliest year on record |
| 2025 | More than $2.4 billion | Tenth costliest year on record |
First estimates from IBC's January releases for 2023, 2024 and 2025, based on CatIQ data. CatIQ revises its figures as claims settle, and IBC's later totals for some years are higher.
Statistics Canada counts four major catastrophic events within 30 days in the summer of 2024: the Calgary hailstorm, the Jasper wildfire, and flooding in Quebec and Ontario. It also found that every year from 2020 to 2025 ranked among the 10 costliest years on record for extreme weather claims.
2025 was calmer but still expensive, with the late-March ice storm in Ontario and Quebec and the May wildfires in Flin Flon, Manitoba. Over the decade from 2016 to 2025, IBC says insured losses from catastrophic weather and wildfires were nearly triple those of the decade before.
Why would a storm across town raise your premium? Insurers set rates on the claims they expect from similar homes in your area. A run of costly storms nearby can lift your price even if your house came through untouched. In Alberta, hail is a big part of that; our Calgary hail insurance guide covers roof claims and hail deductibles.
Rebuilding, materials and labour costs
House insurance pays to rebuild your home, not what it would sell for. When labour and materials cost more, every claim costs more, and so does the coverage you need.
Statistics Canada's June 2026 infographic on what's driving premiums higher points to construction costs, tariffs and labour shortages. Residential construction costs climbed much faster than general inflation after 2019. Recent data shows that pressure easing, but not gone:
- The building construction price index shows residential construction costs up 2.3% year over year in Q2 2026. Metal and steel products led, which Statistics Canada ties to retaliatory tariffs and supply chain disruption.
- In that quarter, Calgary, Vancouver and Toronto were the only metropolitan areas where those costs fell from the previous quarter.
- The Consumer Price Index measure of homeowners' replacement cost was down 2.5% year over year in May 2026, its 13th straight month of year-over-year decline.
Your renewal can still rise if your insurer updates the rebuild cost on your policy. Here's how that one change moves Instasure's Ontario example.
| Insured rebuild cost | Typical monthly estimate | Typical annual estimate |
|---|---|---|
| $500,000 (example profile) | $133 | $1,600 |
| $550,000 (10% higher) | $143 | $1,720 |
| $600,000 (20% higher) | $153 | $1,830 |
Instasure estimate for an example profile (Ontario house built in 2000, $1,000 deductible, $2 million liability, sewer backup and overland water endorsements, no past claims), as of October 2026. Modelled figures, not quotes and not averages.
Don't lower your rebuild cost just to save money: set too low, it could leave you short after a total loss. Ask your insurer or a licensed advisor how the figure was calculated.
Water damage and sewer backup claims
Water is another way climate change shows up in home insurance in Canada. IBC says warmer temperatures are bringing short, high-intensity rainfalls, which lead to more frequent and severe flooding.
How your policy treats water depends on where it comes from:
- Sudden leaks inside the home from plumbing, heating or air conditioning are typically covered by a standard policy.
- Sewer backup through a floor drain is covered only if you add a sewer backup endorsement.
- Overland flooding from heavy rain or rising rivers is optional coverage, priced on your risk, and often sold together with sewer backup.
- Groundwater and seepage are typically not standard coverages.
Finished basements make water claims costly. Where many homes file water claims, insurers may raise rates or tighten water limits.
Our guide to does home insurance cover water damage explains each type of water claim in detail, including flood insurance in Canada. In Instasure's Ontario example, removing the water endorsements lowers the estimate from $133 to $120 a month. That saves $13 a month but leaves sewer backup and overland water uninsured.
How much premiums rose by province
To follow home insurance rates in Canada in 2026, the Applied Rating Index tracks quoted personal property premiums each quarter. The table shows its two latest releases, Q2 2026 (July 22, 2026) and Q1 2026 (May 5, 2026), each compared with the same quarter a year earlier.
| Region | Q1 2026, year over year | Q2 2026, year over year | Instasure typical monthly estimate (October 2026) |
|---|---|---|---|
| Alberta | +16.2% | +11.9% | $154 |
| Saskatchewan and Manitoba | +11.2% | +10.8% | $150 in each province |
| Atlantic provinces | +10.8% | +8.9% | $92 to $108 |
| Ontario | +6.2% | +4.2% | $133 |
| British Columbia | +1.6% | +1.9% | $125 |
| Quebec (information only) | +4.0% | +0.7% | $92 |
| Canada | +8.6% | +5.8% | Not modelled |
Applied figures are changes in quoted premiums, not price levels; Applied groups Saskatchewan with Manitoba, and the four Atlantic provinces together. Last column: Instasure estimate for an example profile (house with a $500,000 rebuild cost, built in 2000, $1,000 deductible, $2 million liability, water endorsements, no claims), as of October 2026. Modelled, not a quote or an average.
Premiums are still rising in every region, but the yearly rise eased between Q1 and Q2 2026 everywhere except British Columbia. Your own home insurance increase in 2026 can differ from these regional figures. Compared with Q1 2026, quoted premiums in Q2 dipped 0.1% in Ontario and 1.9% in Quebec.
Alberta
Alberta tops both columns. Statistics Canada found Alberta had the largest cumulative increase in homeowners' insurance prices of any province: 391.6% from December 2005 to December 2025. It links this partly to hailstorms, wildfires and convective storms. Our model adds a hail loading in Calgary, which lifts its estimate to $197 a month. See home insurance in Alberta and home insurance in Calgary.
Ontario
Ontario was hit by flooding in 2024 and the ice storm in 2025. Its yearly rise slowed from 6.2% in Q1 to 4.2% in Q2 2026. Toronto's estimate is $139 a month in our model, a little above the province, because of a flood loading. Compare home insurance in Ontario or see home insurance in Toronto.
British Columbia, the Prairies and Atlantic Canada
BC had one of the smallest increases, at 1.9%, but it was the only region where the yearly rise picked up from Q1. Our standard estimate there doesn't include earthquake cover; see home insurance in BC.
Saskatchewan and Manitoba were up 10.8% in Q2 2026, and the Atlantic provinces 8.9%, both faster than Ontario or BC. Our estimates run $150 a month in Manitoba and Saskatchewan, and $92 to $108 in Atlantic Canada, with Nova Scotia at the top of that range.
Quebec had the smallest Q2 increase, at 0.7%. Advisor service isn't available in Quebec yet, so its row is for information only.
What you can do at renewal
Why did my home insurance go up if I made no claims?
A home insurance renewal increase doesn't mean you did something wrong. Common reasons include:
- Your insurer raised rates for your area after regional storm or water losses.
- Your insured rebuild cost was updated.
- A discount ended, such as a new-customer discount.
- You changed the home, for example by finishing the basement, adding a suite or starting a home business.
Renewal-notice checklist
Use this list as soon as your renewal notice arrives.
- Compare line by line. Put last year's and this year's premium side by side for the dwelling, contents, liability and each endorsement.
- Check the rebuild cost. Did it change, and does it match your home's size, finishes and renovations?
- Review the deductible. In Instasure's Ontario example, a $2,500 deductible instead of $1,000 lowers the estimate from $133 to $117 a month, and $5,000 brings it to $107. Choose an amount your savings can cover.
- Confirm your claims record. One past claim raises the same example from $133 to $167 a month, so make sure your record is accurate.
- Keep water coverage. Check your sewer backup and overland water limits rather than dropping them.
- Ask about discounts, such as bundling your home and car policies.
- Ask about upgrades. A newer roof, updated plumbing or electrical, or a backwater valve may change how an insurer rates your home. Ask before you spend.
- Ask why it went up. Your insurer should be able to tell you which part of the premium changed.
- Get a fresh estimate and compare it with your renewal before you let the policy renew automatically.
Instasure estimates for the Ontario example profile above, as of October 2026. Real insurers weigh these factors differently.
When to ask an advisor to shop your policy
A licensed advisor can compare several insurers at once. It's worth asking for help when:
- Your increase is well above the regional figure in the table.
- Your insurer declined to renew or added a large water or hail deductible. Start with our hard-to-insure home desk.
- You rent your home short-term or own a cottage. See the short-term rental desk or the cottage and rural property desk.
- Your car premium jumped too. Our guide on why your car insurance is going up covers that side, and bundling may help both.
When you compare, keep the rebuild cost, deductible, liability limit and water coverage the same. Renewal is usually the simplest time to switch. Ask your current insurer whether it charges a fee if you cancel partway through the term.
Michael's take
As a planner, I don't try to predict next year's home insurance rate, and I'd be wary of anyone who does. What I do look at is the trend. Statistics Canada's figures show home insurance prices rising more than twice as fast as general prices since 2019. My rule of thumb is to budget for the renewal to keep outpacing the rest of the household budget. If it comes in lower, that money goes to savings.
When a renewal jumps, I'd look for savings in the deductible before the coverage. If your emergency fund can absorb a $2,500 deductible, the model shows a real saving. Cutting water endorsements or the rebuild cost to shave a few dollars a month leaves your plan exposed to the loss that could derail it. And money spent on prevention, like a sound roof or a backwater valve, protects your home and your claims record at the same time.
Next steps
Start with an instant estimate. Our home insurance quotes flow gives you a range in about a minute to compare against your renewal notice. Then explore coverage options on the home insurance page.
For dated figures by province and city, see our guide to the average home insurance cost. The Instasure Rate Index will add figures from real quote requests as they build up. We plan to refresh this guide with each quarterly Applied release.
A licensed advisor in your province can then compare insurers and confirm real quotes. Advisor service isn't available in Quebec or the territories yet.
