Home insurance rates across Canada have risen by 5.28% in 2025, with Alberta showing the largest year-over-year increase at 9.07%, according to a new study from Toronto-based insurtech MyChoice Financial, Inc.
Other provinces with notable year-over-year inflation (January 2024 to January 2025) include Manitoba (6.67%), British Columbia (5.89%), and Ontario (5.45%). On the other end of the spectrum, New Brunswick saw a 0.25% decrease. Prince Edward Island saw a 0.69% increase and Quebec residents saw an average 2.18% price increase.
MyChoice’s study examines home insurance inflation nationwide. The insurtech combined its own internal data with the Shelter Consumer Price Index, performing a province-by-province analysis that reviews both recent changes and decade-long trends. The team also looked at how much more, in dollar terms, Canadians have been paying for home insurance over the past 10 years.
Even though inflation dropped to 1.9% in January 2025, the high number of claims — driven in large part by climate-related disasters — continue to put upward pressure on home insurance premiums, MyChoice says in a release. Last year was also a record year for weather-related losses. Catastrophe Indices and Quantification Inc. (CatIQ) told Canadian Underwriter insured losses totalled $8.9 billion as of Feb. 12.
“The undeniable influence of climate change on the frequency and severity of natural disasters in Canada serves as a critical backdrop for the projected increases in home insurance rates,” MyChoice says. Not only did Alberta lead the country with a 9.07% year-over-year increase in home insurance rates, it also recorded a staggering $4.1 billion in weather-related damages in 2024 — the highest in Canada, MyChoice says.
The study finds homeowners in Alberta now pay an average of $660 more for home insurance than they did in 2015, an 89.7% increase. In B.C., the figure stands at roughly $592, followed by $551 in Saskatchewan and $519 in Ontario. Quebec saw the ‘lowest’ 10-year increase of $321, a 53.75% increase.
Annual home insurance costs for the average Canadian have risen by $421 over the past decade, MyChoice reports.
Climate impact
A parallel development illustrating the global reach of climate change is the January 2025 wildfires in Los Angeles. Several large U.S. insurers have either withdrawn or limited new policies in high-risk California regions, citing heavy underwriting losses and regulatory hurdles, MyChoice says.
The situation escalated further when California’s FAIR Plan — the state-run insurer of last resort — announced it needed an additional $1 billion to cover wildfire claims in the state. “Under a recent decision by state regulators, California’s private insurers must shoulder half of these costs and can pass the remainder on to policyholders via a one-time fee,” MyChoice adds.
These moves highlight how governments can step in to sustain insurance markets when natural disasters become more frequent and severe. And the lesson isn’t lost on Canadian carriers, says MyChoice CEO Aren Mirzaian.
“We’re witnessing carriers grappling with huge losses – some reporting the worst underwriting results in decades,” Mirzaian says. “As climate becomes more unpredictable, Canada isn’t immune,” he says, noting some insurers have limited operations in high-risk zones, such as Aviva Canada pulling back direct-to-consumer home and auto in parts of Alberta.
“We need well-capitalized and proactive government support,” Mirzaian says. “Otherwise, we’ll continue to see coverage become less affordable or less available in regions prone to disasters.”
Feature image by iStock.com/Umnat Seebuaphan
