Climate risk is now a home-buying factor
The November 2021 British Columbia floods caused about $653 million in insured losses, and the 2016 Fort McMurray wildfire about $3.75 billion (Insurance Bureau of Canada figures). Floods, wildfires and severe storms affect insurance costs, what lenders will accept and, over time, what buyers will pay. This page covers how to check a property’s risk before you buy.
Climate hazards by region
| Region | Main hazards |
|---|---|
| British Columbia (coast) | Flooding from atmospheric rivers, coastal flooding, earthquakes |
| British Columbia (interior) | Wildfire, drought, flooding |
| Alberta | Wildfire, river flooding, hail |
| Saskatchewan and Manitoba | Spring flooding tied to snowmelt, severe storms |
| Ontario | Urban flooding and severe storms in the south; wildfire and flooding in the north |
| Quebec | Spring flooding, ice storms, extreme heat |
| Atlantic Canada | Hurricane remnants, coastal erosion and flooding |
| Northern Canada | Permafrost thaw, wildfire |
How climate risk can affect value
A higher hazard shows up first in insurance: premiums rise, deductibles grow, and some insurers restrict overland flood or wildfire coverage in the riskiest areas. Buyers weigh those costs, and a recent flood or fire nearby can make a property harder to sell for a time. Canadian prices often don’t fully reflect hazard yet, partly because many flood maps are old, so a lower-risk home may hold its value better as mapping and disclosure improve.
Insurance: where climate risk shows up first
Home insurance is required as a condition of the mortgage, so if a home becomes hard to insure it also becomes hard to finance and to sell.
- Overland flood coverage is an optional add-on with most insurers; in high-risk areas it can be expensive, limited or unavailable.
- Sewer backup coverage is a separate add-on and is widely available.
- Wildfire is normally covered under a standard policy, but premiums are higher in wildland-urban interface areas.
- Earthquake coverage in BC is an add-on with a high deductible.
If standard insurers decline, specialty insurers may cover the home at a higher price. The federal government has committed to a national flood insurance program for high-risk homes, delivered with the provinces and territories; Public Safety Canada’s departmental plan describes it as still in development, so check its status before counting on it.
Mortgage implications
Lenders require proof of property insurance before they fund a mortgage, so in practice a home you can insure is a home you can usually finance. Where insurance can’t be obtained, a lender can decline. Appraisals and lender policies may give more weight to climate risk over time, which is one more reason to check a property’s hazard before you commit.
For energy-efficient new homes, CMHC’s Eco Plus program offers a 25% partial refund of the mortgage insurance premium to CMHC-insured buyers of a newly built home that has an eligible energy-efficiency certificate or an energy rating at least 20% better than a typical new home.
How to assess climate risk before buying
Check flood risk
| Resource | What it shows |
|---|---|
| Canada’s Flood Risk Finder (Public Safety Canada) | Flood risk by address on a four-point scale, in provinces and territories that have joined |
| Provincial flood maps | Mapped flood hazard areas (in Ontario, through local conservation authorities) |
| Municipal planning department | Designated hazard areas and zoning |
| ClimateData.ca | Climate projections by location |
Many flood maps are decades old. A home outside a mapped flood zone can still flood from heavy rain, poor drainage or sewer backup.
Check wildfire risk
| Resource | What it shows |
|---|---|
| Canadian Wildland Fire Information System (Natural Resources Canada) | Current fire conditions and history |
| FireSmart Canada | Home and community wildfire preparedness |
| Provincial wildfire service (such as BC Wildfire Service or Alberta Wildfire) | Fire history and current risk |
Get insurance quotes before your conditions expire
Before you firm up an offer, get written quotes on the specific property from more than one insurer, and ask specifically about overland flood and sewer backup coverage and any wildfire surcharge.
Review the property’s history
| What to check | Where to find it |
|---|---|
| Past flooding or claims | Ask the seller directly and in writing; disclosure duties vary by province |
| Basement waterproofing, sump pump, backwater valve | Home inspection |
| Lot grading and drainage | Home inspection, survey |
| Past flood events nearby | Municipal records, neighbours |
Factor it into your price
If the property has higher climate risk, budget for higher insurance and for mitigation (a backwater valve, sump pump with battery backup, lot grading, fire-resistant roofing and siding, a non-combustible zone around the house), and weigh how easy the home will be to insure and sell in 10 years. Some insurers give discounts for verified mitigation; ask what qualifies.
Government programs
| Program | What it covers |
|---|---|
| Disaster Financial Assistance Arrangements | Federal cost-sharing with provinces after a declared disaster (recovery, not prevention) |
| Provincial disaster assistance and mitigation programs | Vary by province; check yours |
| CMHC Eco Plus | 25% partial premium refund for CMHC-insured buyers of energy-efficient new homes |
Climate risk by property type
| Property type | Key vulnerabilities |
|---|---|
| Detached house (urban) | Urban flooding, sewer backup, ice dams, severe storms |
| Rural or acreage | Wildfire, well water contamination, road access during events |
| Condo (mid or high rise) | Underground parking flooding, power outages, heat on upper floors |
| Waterfront | Flooding, storm surge, erosion |
| Basement unit | Highest flood and sewer backup exposure |
Related pages
Sources
The figures and rules on this page come from these sources, last checked against them on September 25, 2026. How we check facts.
- a.storyblok.com: of the Property and Casualty