Your home insurance has likely been on your mind lately. A lot of media attention has been paid to rate increases and changes to coverage. You might wonder why these changes are happening and how it will affect you. Don’t hesitate to call your MCT broker to discuss your coverage or continue reading to find out more.
The main reason property insurance is changing can also be found in the headlines. We’re experiencing more frequent catastrophic weather events than ever before. Hail, rain, wind storms and hurricanes are causing more damage. In fact, insured damage from these types of events from 2013 has resulted in the highest payout ever recorded at $3.2 billion in claims.
This trend of increasing weather disasters shows no signs of stopping and is getting worse each year. Atlantic Canada had their fair share of weather events in recent years starting in 2010. Hurricane Igor caused $70M in damages in Newfoundland Labrador and in November 2010, south-western Nova Scotia experienced the worst flooding in a century after 200 mm of rain fell in one day. That same year in December, winter storms caused $51M in claims. In 2011, Hurricane Irene caused $130M in insured losses and the 2013 ice storm caused $200M in damages through Atlantic Canada and parts of Ontario.
Not only are Canadians dealing with more frequent natural disasters, but the effects of these events are amplified by aging municipal infrastructures. Many cities and towns were designed and built years before urbanization and climate change. With more people now living in the city, this places a greater load on utility system such as electrical grids and sewer systems. Due to the increased demand placed on infrastructure, it doesn’t take a major weather event to cause damage.
The majority of these damages occur in the basements of homes across the country. More and more homeowners are investing thousands of dollars to finish and furnish their basements. This means that the cost to repair water-related damage in a basement is higher than it’s ever been.
As weather and changing homeowner trends are expected to continue in the future, there will be more of a strain on insurance providers and homeowners alike. This is why you’re hearing a lot of talk about rate increases and coverage limits. Your home is likely your most important financial asset and we want to make sure it’s properly protected.
Protection doesn’t just mean insurance coverage. There are preventative measures you can take to protect your home against future losses. Not only can you eliminate or reduce possible future claims, but you could also qualify for discounts on your insurance policy.
We encourage you to get in touch with your MCT broker to discuss your insurance options. We can explain what’s happening with your home insurance, give you tips on protecting your home, and shop around to find coverage to fit your needs.