Flood and water-related losses have surged more than 350% over the past two decades
This spring, flooding in several regions across the country has damaged homes, disrupted communities and strained municipal infrastructure. With weather forecasts pointing to unsettled weather patterns in the weeks and months ahead, the risk of flooding remains across much of the country. Insurance Bureau of Canada (IBC) is urging all orders of government to treat flooding events as a clear warning sign and accelerate efforts to better protect Canadians from flood risk.
Flooding remains Canada’s most frequent and costly natural disaster, and the trend is accelerating. Over the last 20 years, flood and water-related insured losses have increased more than 350% compared to the previous two decades, according to Catastrophe Indices and Quantification Inc.
“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. “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.”
To meaningfully reduce flood losses and keep insurance affordable, IBC is calling on governments to accelerate action in key areas, including:
Building new homes away from high‑risk flood plains by strengthening land‑use planning and restricting development in areas at highest risk
When building in flood‑prone areas is unavoidable, requiring cost‑effective, community‑level mitigation measures, such as flood protection infrastructure and nature‑based solutions
Investing in modernizing wastewater and stormwater infrastructure so cities and towns can safely manage heavier, more frequent rainfall events
Strengthening building codes and construction standards to ensure new homes are built with flood‑resilient features that reflect current and future climate conditions
Scaling up home retrofit programs to incentivize homeowners to invest in practical, affordable measures that reduce flood damage and recovery costs
Helping Canadians understand the risks they face through consumer-facing risk tools, including through provincial governments opting in to the federal government’s recently launched Flood Risk Finder
Educating consumers by providing clear, accessible information to empower homeowners, renters and businesses to make informed decisions and take practical steps to mitigate their risk.
“The most effective way to ensure the continued sustainability of the home insurance market is by creating more resilient communities,” added McGuinty. “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.”
What Canadians can do
While governments play a critical role, Canadians can take practical steps to reduce their flood risk. Homeowners are encouraged to understand their local flood risk, maintain drainage systems where available, consider installing backwater valves or sump pumps where appropriate, and review their insurance coverage.
IBC provides easy‑to‑use tools and guidance to help Canadians prepare for flooding and take action to protect their homes at its Water Damage and Flood Protection web page.
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