Homeowners and buyers in Nova Scotia are confronting rising risks from floods and other climate-related disasters, a challenge that is increasingly testing both property markets and insurers.
A Halifax Regional Municipality (HRM) study has identified more than 1,200 properties near the Shubenacadie Lakes System that could be affected by major flooding. Interactive maps released by the city outline areas at risk from one-in-20 and one-in-100-year flood events.
For residents like Eileen Moore, who owns a waterfront property in the area, the findings raise questions about coverage, according to a report from CBC. Moore said she had not realised her home was within a floodplain. Although less concerned because her property is elevated, she admitted she was unsure whether her policy would cover potential water damage to her garage or basement.
Flooding is not just a hypothetical risk. In 2023, heavy rain left parts of Moore’s street under water, with some neighbours facing significant property damage. Despite this, several residents said they were unaware of the mapping until now, the report said.
HRM officials said the report has been available since 2020 and shared online, but the municipality is now considering updates to building regulations. A similar study of the Sackville Rivers identified 900 homes in high-risk zones, prompting land-use bylaw changes earlier this year.
Impact on insurance and property markets
Real estate broker Donna Harding of Engel & Völkers Nova Scotia said clearer communication is needed to help homeowners and buyers make informed choices. She noted that insurers are becoming more cautious about providing coverage in high-risk areas.
After the 2023 Tantallon and Susies Lake wildfires, she said some insurers restricted coverage or withdrew entirely. In one case, a buyer closed on a property only to discover hours later that their insurance was invalid due to a nearby fire.
While most home insurance policies cover fire, flood protection is sold separately and can be denied in high-risk zones.
National implications
Nova Scotia’s situation reflects a wider Canadian trend. Alberta homeowners in flood-prone zones and British Columbians in wildfire regions have faced rising premiums or shrinking coverage options.
Insurance expert Daniel Ivans of Rates.ca said updated risk maps are driving premium increases. The Insurance Bureau of Canada reported $8.5 billion in insured losses last year, the highest on record, underscoring the mounting financial toll of climate events.
