Advertisement

Should Canadian homes get climate risk scores? Insurance industry says yes

Click to play video: 'Storm Fiona: How will increasing extreme weather impact your insurance premiums?'
Storm Fiona: How will increasing extreme weather impact your insurance premiums?
Early estimates peg the damage brought on by post-tropical storm Fiona at $300 to $700 million dollars — the most expensive natural disaster in Atlantic Canada by a long shot. Insurance costs show extreme weather events are more frequent, meaning premiums will continue to rise across the board. Anne Gaviola has more. Partial Video Credit: Newsflare – Sep 27, 2022

The Insurance Bureau of Canada is calling for the creation of a climate risk score that would indicate a property’s susceptibility to damages caused by natural disasters.

The IBC says disclosure of natural hazard and climate risk is needed because of the increasing frequency and severity of extreme weather events, such as hurricane Fiona.

The report released Tuesday is the result of a national group of representatives from across Canada’s housing supply chain who were invited in 2021 to develop a framework to communicate these risks to homeowners.

IBC vice-president Craig Stewart says Canada needs to develop a universal climate risk disclosure system by 2025.

The report also recommends that flood maps be updated and that a risk action matrix be created for lenders and insurers.

Story continues below advertisement

Stewart says access to reliable climate-related data will help homeowners, builders, financial companies and the government invest in resilience and adaptation projects.

Click to play video: 'Insurance tips if a natural disaster causes damage to your home'
Insurance tips if a natural disaster causes damage to your home

Sponsored content

AdChoices