As Canada prepares for another record wildfire season, the climate crisis is creating another major challenge facing Canadians – housing.
A new BMO report released Monday found that climate-related factors like wildfires, floods, heat waves and hurricanes will impact where 39 per cent of Canadians would like to live over the next five years. This percentage is higher among younger Canadians.
That rises to 49 per cent for Millennials (born between 1981 and 1996) and 54 per cent for Gen Z Canadians (born between 1997 to 2012), the report said.
Alex Cool-Fergus, national policy manager for Climate Action Network Canada, said the data is not surprising, given that recent events have driven the climate crisis home for many Canadians.
“For example, the effects of flooding in your basement could cost you dozens of thousands of dollars for one incident. I think that’s normal and I think it’s … relatively encouraging to know that people are aware of the risks,” she said.
cost of climate change
According to Insurance Bureau of Canada, 10 per cent of all homes in Canada are at “high exposure” to flood risk, but do not have access to flood insurance. The cost of extreme weather events on housing has skyrocketed since 2008.
A recent report from the Intact Center on climate adaptation It was said that between 1983 and 2008, insured losses in Canada averaged $456 million per year. Since 2008, losses have increased and now regularly exceed $2 billion per year, mostly due to water-related damage. In 2023, severe weather damage Exceeding $3 billion in Canada for the second year in a row.
Intacct reports that devastating flooding resulted in an average 8.2 percent decline in the final sale price of homes, a 44.3 percent decline in the number of homes listed for sale, and 19.8 percent more days left on the market for homes to sell. The Okanagan and Shuswap, BC, area wildfires and the Nova Scotia floods were two major weather-related events that contributed significantly to damage last year.
According to IBC, it Cost approximately $43,000 To repair a flooded basement in Canada.
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Steven Harris, LowestRates.ca expert and insurance broker, said: “The increasing severity of hurricanes, wildfires and other natural disasters is driving up claims costs for the home insurance industry across the country. This is exacerbated by inflation and rising rebuilding and replacement costs, resulting in rising home insurance premium prices for many consumers.
He said the impact of extreme climate events will look different across Canada. Some areas, such as the East Coast, are experiencing increases in storm severity and flooding, while other areas, such as Ontario, Quebec, Alberta and BC, are seeing an increase in wildfires and drought.
Harris said people should be aware of the risks.
“Looking at flood maps, if available, may be helpful, or understanding the wildfire risk for the area and taking steps to protect property from these risks will help. For example, installing sump pumps for potential flooding or trimming tall grass around a home in an area that may be at risk for wildfire,” he said.
has an intact center A list of infographics Homeowners can take steps to prepare their homes against wildfires, heat waves, floods and other such extreme weather events. These range from maintaining your home in a climate-friendly manner, such as regularly clearing flammable materials near your home or clearing leaves from gutters, to more expensive measures such as making your home non-combustible or Can add flood resistant construction materials.
Harris said homeowners should also have a clear understanding of what their home insurance covers and what it doesn’t.
He added: “Not just homeowners, renters also need the right coverage, especially if they live in flood or wildfire areas. If a flood or wildfire is imminent, they may not be able to purchase coverage due to binding restrictions.
‘Change in policy soon’
He said Canadians should expect policy changes soon.
“The Insurance Bureau of Canada is currently working with the federal government on a national flood plan that will be introduced in the coming years,” he said.
The federal government said It plans to implement a long-promised national flood insurance program sometime next year, with a provision of $15 million in the 2025-26 fiscal year its latest budget On 16th April.
Cool-Fergus said the cost of not taking action far outweighs the cost of climate adaptation.
“The Canadian Climate Institute says that for every dollar invested in climate adaptation today, there is a return of $13 to $15 in future savings. This is huge,” she said.
“Governments across Canada must … right-size infrastructure, ensuring that their infrastructure is built in a way that reflects tomorrow’s climate, not today’s.”
He said now is the time for Canadians to start having tough conversations.
“There are going to be difficult conversations within local communities and also within provincial governments (in Canada) about where people can no longer live. And that’s a really hard thing to do. “This conversation is taking place in the United States.”
However, he said there have been some encouraging changes at the municipal level in cities like Montreal and Fredericton.
“There are municipalities that have absolutely stepped up and are changing the way they build their roads, the way they build their sewers. “They’re investing in green space and natural climate solutions.”
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