Insurance Bureau of Canada (IBC) is warning Atlantic homeowners to prepare for an elevated risk of flooding and water damage as deep winter snowpacks begin to melt across the region.
With warmer temperatures arriving and waterways starting to thaw, snowmelt and ice jams could drive localized flooding and costly losses, the industry body said.
“Given the considerable snowfall experienced in parts of Atlantic Canada this winter, there’s a heightened risk of water damage due to rapid snowmelt and ice jams that could cause flooding as temperatures start to rise across the region,” said Amanda Dean, vice president, Ontario and Atlantic, at IBC. “It is important that property owners and renters take necessary precautions and protect their properties to minimize potential damage. By taking some practical steps, residents can better protect their families, homes and businesses.”
IBC’s guidance focuses on basic maintenance and flood‑preparation measures that can be implemented quickly by homeowners and small‑business owners.
The bureau recommended keeping floor drains and storm sewer grates clear, and considering a backwater valve where feasible to reduce sewer‑backup risk. Downspouts should be cleared of debris and directed well away from the property to help prevent basement flooding and roof ice dams.
Homeowners were also advised to clear remaining snow away from the building, especially around basement windows and doorways, and to inspect foundations for cracks that can be filled with appropriate exterior sealant, using a contractor if needed.
Slip‑and‑fall exposures are another concern as temperatures fluctuate. IBC urged residents to check sidewalks daily, noting that snow and ice can melt during the day and refreeze overnight, and to use salt, sand or ice melter to keep walkways safe.
Other recommendations included moving valuable items out of basements to higher levels of the home; ensuring any sump pump is working properly and has a backup power source; using sandbags or temporary flood shields if flooding is imminent; and raising large appliances, electrical panels, furnaces and hot water heaters off basement floors on blocks well in advance of potential flooding. If a flood is imminent, IBC says homeowners should consider anchoring these appliances and protecting them with a floodwall or shield where possible.
If residents are away from home, the bureau advised arranging for a trusted neighbor or friend to check the property regularly, inside and out.
IBC stressed that the tips are general guidance, not guarantees against loss, and that homeowners should consider their own circumstances and seek professional advice where appropriate.
IBC is also urging homeowners to review their insurance coverage as severe weather becomes more frequent and costly in Canada.
The bureau noted that sewer‑backup damage is only covered if a policyholder has purchased specific optional coverage, which may not be available or may carry restrictions in known flood plains. Overland flood damage – when rivers or other bodies of water overflow onto dry land – is likewise covered only when optional overland flood coverage is in place, and may be unavailable in high‑risk zones.
Ice damming, which can occur when heavy snow buildup melts in the day and refreezes overnight, is often covered under standard homeowner policies where the resulting water damage is sudden and accidental. However, ongoing or repeated issues may be treated as maintenance problems and excluded. IBC advised policyholders to speak with their insurance representative about how their specific policy responds to ice dams and roof leaks.
Water damage caused by indoor plumbing, heating or air conditioning is typically covered under a standard home policy, while damage from coastal flooding and storm surge generally is not. Coverage terms vary by insurer and wording, and IBC is urging consumers with questions to contact their broker or agent, or its own Consumer Information Center.
IBC’s thaw warning sits within a broader, worsening loss picture. Insured catastrophe losses in Canada hit a record $8.5 billion in 2024, driven by wildfires, flooding and severe convective storms, according to Catastrophe Indices and Quantification Inc. That total was nearly three times the insured losses of 2023 and more than 12 times the annual average between 2001 and 2010, which stood at about $701 million.
Water is a particularly persistent driver of severity. Construction market data show that water damage and flooding account for more than half of first‑party builders’ risk claims, outstripping fire as a cause of loss on job sites. Insurers are seeing similar patterns in personal and commercial property portfolios, where relatively modest drainage or plumbing failures can generate six‑ or seven‑figure losses once interiors, equipment and business interruption are factored in.
At the same time, pressure is mounting around flood‑coverage availability and affordability. Industry analysis highlights a growing push for a national flood insurance program to close coverage gaps for high‑risk properties, amid concerns that private markets alone may not be able to provide sustainable capacity in some zones.
With 2024 catastrophe claims estimated to be more than four times the 20‑year average in Canada, reinsurers are also reassessing their appetite for flood and severe‑weather exposures. That is feeding into higher reinsurance costs, tighter terms and, ultimately, premium pressure for primary carriers and their customers.
For brokers, the thaw‑season risk is a prompt to have more detailed conversations with clients about water mitigation, deductibles, sublimits and optional coverages, particularly sewer‑backup and overland flood. It also underscores the importance of documenting risk‑control measures – from backwater valves and sump‑pump maintenance to elevation of critical equipment – which can support placement and, in some cases, pricing.
Severe weather damage is a growing risk across Canada, with insured losses from natural disasters nearly tripling in the last decade. From 2006 to 2015, losses totaled $14 billion. By contrast, between 2016 and 2025, they reached $37 billion, and the number of claims nearly doubled over the same period.
In IBC’s view, the long‑term solution to escalating weather losses goes beyond individual mitigation. The bureau continues to press federal, provincial and municipal governments to invest in flood‑defense infrastructure, adopt land‑use rules that prevent new construction on flood plains, expand FireSmart programs in wildfire‑exposed communities and implement long‑discussed building‑code changes to improve resilience.
“In the face of increasing severe weather, the best way to protect Canadians, make homes and communities safer, and insurance widely available and affordable is to invest seriously in resilience now,” the bureau said.
