Alberta and British Columbia (BC) account for more than half of Canada’s insured losses from extreme weather events, according to the IBC.
In recent years, both provinces have experienced significant natural disasters, including devastating wildfires, floods, and hailstorms. As these severe weather events become more frequent and intense, the IBC is advising residents, businesses, and communities to reassess their insurance coverage in light of the growing risks associated with extreme weather.
“Western Canada has been at the epicentre of natural catastrophes in our country, and with another severe weather season fast approaching, now is the time to prepare,” said Aaron Sutherland, vice-president, Western and Pacific, IBC. “Emergency Preparedness Week is about being aware of severe weather risks and taking practical steps today to protect what matters most – our families, our homes and our communities.”
Data from Catastrophe Indices and Quantification Inc. (CatIQ) shows that, over the past decade, Alberta and BC have accounted for 51.3% of Canada’s insured catastrophic losses. Alberta alone has been the site of five of the 10 costliest disasters in Canadian history, including the 2016 Fort McMurray wildfires, which resulted in $4.6 billion in insured losses, and the 2024 Calgary hailstorm, which caused $3.1 billion in insured damage.
Recent weather events have further illustrated the growing risks. In 2024, Alberta faced significant damage from the Jasper wildfire, which destroyed hundreds of structures and prompted large-scale evacuations.
BC, meanwhile, has been repeatedly affected by atmospheric rivers, which have caused severe flooding in various regions, displacing thousands of residents and causing extensive property damage.
These events contribute to the rising cost of insurance claims, with national insured payouts for weather-related disasters climbing from $1 billion in 2019 and 2020 to $8.9 billion in 2024, according to CatIQ.
Given these increasing risks, IBC recommends that homeowners and businesses carefully assess their insurance policies to ensure they are properly covered for current risks.
“Preparation isn’t just a checklist – it’s peace of mind,” said Sutherland. “By taking action today, we can help safeguard lives, homes, businesses, and communities when the next disaster strikes.”
The importance of reviewing insurance coverage has also become more apparent as the frequency and severity of extreme weather events continue to rise. Homeowners and businesses are encouraged to ensure their policies reflect current risks, such as floods, wildfires, and hailstorms, and to understand the scope of their coverage and any exclusions, according to the IBC.
As Alberta and BC continue to experience costly natural disasters, insurance remains a key factor in managing the financial consequences of these events. Proper coverage can play a critical role in helping individuals and communities recover and rebuild following extreme weather events, the bureau said.
