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Home Insurance & Climate Change: How Do They Relate?

Posted Aug 28th, 2019 in Did You Know?, General, Home Insurance, In the News, Insurance Tips, Media

We’re constantly reminded about global warming and climate change. You might not realize this but there is a correlation between climate change and your home insurance policy – find out what now.

Home Insurance & Climate Change: How Do They Relate? Youngs Insurance, Ontario

As global citizens, it’s hard to ignore the frequent reports released regarding the severity of global warming and climate change on our planet.

If we cannot change our ways and slow down or stop global warming altogether, we’ll continue to experience more destructive weather.

Why is Canada warming faster than everywhere else?

Recently, Natural Resources Canada released a report highlighting the fact that Canada is warming two times faster than the rest of the world. This report explains that the warmer climate will cause more extreme weather in the future.

Not only does this mean an increase to the severity and frequency of heatwaves and drought, which caused wildfires, it also references extreme levels of precipitation resulting in flooding and increased weather events such as hurricanes and tornados.   

How is climate change impacting YOUR insurance?

It’s simple - the extreme weather that comes with climate change means more damage to homes and property, which ultimately results in increased insurance claims.

In a 25-year period from 1983 – 2008 insurance claims in Canada averaged $400 million. Over the next 10 years, that number rose to almost $2 billion in 2018. This increase in losses is largely due to the rise of extreme weather and infrastructure that cannot handle the change in weather patterns. (Source: Insurance Business Magazine Online)

Why you should anticipate increased insurance premiums…

If we don’t get a handle on climate change, Canada will continue to experience destructive weather patterns that increase insurance claims, inevitably leading to increased insurance premiums.  

That is why it’s essential you ensure you’re doing everything possible to keep your insurance in good standing. That means never missing a payment or be cancelled for non-payment.

We recommend you communicate with your Insurance Broker to ensure you have adequate home coverage that protects you and your family.  

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