Substantial Increases in Home Insurance Premiums

Substantial Increases in Home Insurance Premiums

This year, the number of extreme weather events has had a direct impact on insurers.

Owners of houses, condos and cottages will see significant increases in their home insurance premiums. Some have already even seen their bills double.

Martin Gaulin-Gendreau, from Chambly, Quebec, just renewed his home insurance. And his premium was nearly twice the amount of last year’s policy!

“It’s almost a 100% increase in a year. I must say, it’s quite a shock,” he told the newspaper Friday.

For his hundred-year-old house in Chambly, Mr. Gaulin-Gendreau’s home insurance premium with Sonnet went from $295 to $583.

“They explained that, because of the large number of claims last year, insurers have to increase premiums,” he said.

Insurer La Capitale also reports that home insurance premiums are clearly rising.

Increases, from 10% to 20%

“There is indeed an upward trend in home insurance premiums. It’s similar to car insurance premiums,” said La Capitale Insurance spokesperson Jean-Pascal Lavoie.

Insurance premiums for Quebec motorists are on the rise this year, ranging from 10% to 20%.

The Insurance Bureau of Canada (IBC) maintains that the increasing frequency of climatic events (floods, tornadoes, ice storms, etc.) observed in recent years has impacted insurance premiums for home, condo and cottage owners.

Water damage

“There have been significant increases in claims from the insured, particularly for water damage,” said IBC spokesperson Anne Morin.

“Like with car insurance, home premiums are also under pressure from the frequency and severity of claims, which have been increasing in recent years,” said Desjardins Insurance spokesperson Valérie Lamarre.

Ms. Lamarre went on to say that water damage now accounts for more than 50% of the cost of annual home insurance claims.

Indeed, every year, more than $500 million is paid out by Quebec insurers just to cover water damage.


  • Desjardins General Insurance: $173 million
  • La Capital: $75.5 million ($37.1 million in general insurance)
  • Intact ( $707 million
  • Aviva Canada: $82 million
  • The Co-operators: $-37.1 million

Sources: Annual reports



Saturday, March 23, 2019
Updated, Tuesday, March 26, 2019, at 9:35 a.m. (in French only)

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