Where home insurance premiums are hitting Canadians the hardest

Even as overall inflation cools, Canadian home insurance premiums increased by 4.01% nationwide in 2026, according to a recent study from MyChoice Financial, Inc.

Atlantic Canada saw the sharpest increases between January 2025 and January 2026, led by Nova Scotia (+12.12%), Newfoundland and Labrador (+8.87%), Prince Edward Island (+8.78%), and New Brunswick (+8.36%).

Many factors continue to elevate home insurance rates, the Toronto-based insurtech reports, including a steady stream of weather-related losses, rising repair and rebuilding costs, and the growing impact of an aging housing supply across Canada.

In light of this multi-year trend, MyChoice conducted a nationwide analysis of home insurance inflation using its proprietary quote data, alongside the Shelter Consumer Price Index. The study reviewed provincial trends, examined the impact of 2025’s major weather events, and assessed how structural risks such as renovation costs and home condition continue to shape pricing.

Although Atlantic Canada saw the sharpest increases, Alberta saw premiums rise by 9.29% following another year of hailstorms and severe weather.

Ontario (+2.47%) and Quebec (+3.97%) remained relatively stable, despite experiencing the largest Cat event of the year — the Mar. 28-31, 2025 ice storm that cost the Canadian P&C insurance industry $466 million in insured losses. The storm saw Ontario’s Kawarthas region experience 35 hours of freezing rain, resulting in 25 mm of ice accumulation that led to widespread damage and power outages for hundreds of thousands of people.

In 2024, the industry saw a record $9.1 billion in insured loss. Last year, weather-related insured losses exceeded $2.4 billion, marking another multi-billion-dollar year for catastrophes in Canada.

MyChoice’s study found British Columbia was the only province to see a decline (-1.20%), although underlying flood risks remain elevated.

Spotlight on Atlantic Canada

One of the most notable shifts is happening in Atlantic Canada. The August 2025 Kingston wildfire caused more than $70 million in insured damage and ranked as the costliest property loss event in Newfoundland and Labrador last year. It forced the evacuation of upwards of 3,000 people, underscoring how regions generally considered lower risk are now seeing meaningful losses and, in turn, sharper premium increases.

“As a result, insurers are beginning to reprice risk more aggressively in the region, which is reflected in the double-digit premium increases seen across several provinces,” MyChoice says.

Beyond weather, the study also found that rising repair costs (3% to 6% in many cities) and Canada’s aging housing stock are playing a growing role in pricing.

“Insurance pricing is no longer just about location and weather,” says Matthew Roberts, MyChoice’s chief operating officer. “The condition of the home itself is becoming a key risk factor.

“When repair costs rise and maintenance is delayed, insurers are forced to price in that additional risk.”

There are also broader policy implications. Canada’s long-discussed National Flood Insurance Program, intended to support 1.5 million high-risk households, has yet to be implemented, despite being proposed in 2019 and referenced in multiple federal budgets. There was a renewed promise to set up the flood backstop this year, but it’s uncertain if that will occur. In the meantime, gaps in coverage remain, particularly in flood-prone regions.