The Insurance Bureau of Canada is pressing the federal, provincial and municipal governments across the country to treat flooding events as a warning, accelerating efforts to better protect Canadians from flood risk after spring flooding has damaged homes and communities throughout the country.
According to IBC, weather forecasts predict “unsettled weather patterns” in the following months, and the flood risk remains across the country. Flood and water-related insured losses have increased by more than 350% over the last 20 years compared to the previous two decades, reported Catastrophe Indices and Quantification Inc.
Flooding is the most frequent and costly natural disaster in Canada.
“From spring thaw to intense rainfall events, flooding is becoming more frequent, more severe and more costly in communities across Canada,” said Liam McGuinty, vice‑president, federal affairs, IBC, in the press release. “We need coordinated action from all orders of government, industry and homeowners to reduce risk, strengthen resilience and protect Canadians from the rising costs of extreme weather.”
IBC urges governments to reduce flood losses and keep insurance affordable by taking action in the following key areas.
- Build new homes away from high‑risk flood plains.
- Require cost-effective, community-level mitigation measures, such as flood protection infrastructure, when building in flood-prone areas is unavoidable.
- Invest in modernizing wastewater and stormwater infrastructure.
- Strengthen building codes and construction standards.
- Scale up home retrofit programs to incentivize homeowners to invest in flood damage reduction and recovery cost measures.
- Help Canadians understand flood risks they face through tools, including provincial governments opting in to the federal government’s Flood Risk Finder.
- Educate consumers by providing clear, accessible information to homeowners, renters and businesses to inform decision-making and risk mitigation steps.
“The most effective way to ensure the continued sustainability of the home insurance market is by creating more resilient communities,” said McGuinty in the press release. “That means better flood maps, smarter land‑use decisions, building codes that account for a changing climate and investments in infrastructure. Investing in resilience now is the smartest, most cost‑effective way to protect Canadians and their communities for the long term.”
Canadians can reduce their flood risk by maintaining drainage systems, installing backwater valves or sump pumps and reviewing their insurance coverage. IBC’s flood preparation resources can be found here.
