Insured losses linked to weather-related disasters reached record levels in 2024, with nearly one in three insurance claims attributed to major weather or climate events, according to data from Allstate Insurance Company of Canada.
The company’s internal data shows that over the past decade, 29% of claims were related to significant weather events, with the number of such claims in 2024 about 2.4 times higher than in 2023.
A 2025 Léger poll commissioned by Allstate found that 80% of respondents have basements, and one in 10 reported experiencing basement flooding. The survey, conducted online in late January 2025, included 1,000 Canadian homeowners aged 18 and over.
Rob de Pruis, national director of consumer and industry relations at the Insurance Bureau of Canada (IBC), said the frequency and severity of major weather events have increased across the country, including fire, hail, wind, and water-related incidents.
In 2024, insured damages from severe weather surpassed $8 billion for the first time in Canadian history, exceeding the previous record of $6 billion set in 2016 following the Fort McMurray wildfires. The 2024 figure is nearly three times the total insured losses recorded in 2023 and 12 times the annual average between 2001 and 2010.
Since 2019, Canada has seen a 115% increase in claims for personal property damage and a 485% rise in repair and replacement costs, according to the IBC.
While the largest single weather event in 2024 was an August hailstorm in Calgary, causing $3 billion in insured losses within just over an hour, flooding continued to cause damage across the country. Odel Laing, agency manager at Allstate Canada, noted that insurance can cover homes and vehicles, but personal items such as photographs and heirlooms are harder to replace, highlighting the importance of prevention.
Laing also said basements, now often used for entertainment and valuable equipment, remain vulnerable to flooding, which can lead to costly repairs. He added many policyholders discover gaps in their coverage only when filing claims, especially related to water damage, as some assume standard home insurance covers all perils.
According to the Léger poll, only 27% of Canadian homeowners feel confident their homes are prepared for major weather or climate events such as tornadoes, flooding, wildfires, or hail.
Both Allstate and the IBC recommend homeowners review their insurance policies to confirm coverage details, including any renovations or additions. Sewer backup and overland flood coverage are typically optional add-ons, with overland flood insurance covering flooding caused by heavy rainfall or melting snow, not only flooding near bodies of water.
Other recommended precautions include elevating electronics, using plastic storage containers instead of cardboard, selecting waterproof cabinetry and shelving, consulting professionals about landscaping to direct water away from foundations, and installing sump pumps, backwater valves, and reinforced windows and doors.
For wildfire risk, clearing dry vegetation and using fire-resistant materials around homes is also advised, according to the report.
