How to Factor Climate Risk Into Your Home Search

Severe weather events are becoming more common — and costly — in Canada. Evaluating climate risk is a valuable exercise that prospective homebuyers should consider when looking at a new home or community.

For 25 years, insurers spent about $400 to $700 million per year on insurance claims related to extreme weather events, according to Kathryn Bakos, managing director, finance and resilience with the Intact Centre on Climate Adaptation in Waterloo, Ontario.

“From 2009 onward, we are now averaging $2.8 billion per year,” she says.

That’s just the average. In 2024, the Insurance Bureau of Canada reported that insured damage caused by severe weather events surpassed $8 billion in a single year — for the first time ever.

The cost of uninsured losses can be three to four times higher than insured losses, Bakos says.

One example is a flooded basement. “An average cost of a flooded basement in Canada is $54,000,” Bakos says.“ Well, your insurance might be capped at $10,000 or $20,000. The homeowner has to pay the balance.”

Consumers are taking notice. According to the RE/MAX 2025 Canadian Housing Market Outlook, 47% of Canadians say they prioritize selecting a home in a location less susceptible to climate change impacts.

There are several ways to evaluate climate risk when searching for a new home — and a few in development. Here’s where to start.

Make use of online tools

You can quickly check a property or area for risk factors using online tools:

Home listings by Royal Lepage and a few other brokers in Canada use ClimateCheck. For each listing, it displays the number of days with extreme heat and the number of severe storms (wind, wet or snow) in past years, and how those totals are expected to change by the year 2050.
Climatevaluation.com evaluates climate risks for a property you’re considering. You can get a free basic understanding of a property’s climate-related risks, and a climate valuation rating that sets out possible longer-term availability and cost of insurance. You can also pay for a more comprehensive report that breaks down individual climate hazards and provides more detailed insights and diagnostics into extreme weather risks for specific elements of the property over time.
While it isn’t a guarantee of future events, a quick search of media reports of recent or historical climate events in the area (such as major floods, hailstorms or wildfires), can also give you an idea of what homeowners have already experienced.
Familiarize yourself with flood forecasting and warning programs offered by conservation authorities or local hazard reports available in some municipalities can also provide a sense of the climate risks that exist in the region.

Talk to your real estate agent

Ask your agent whether the property has been impacted by flooding, fire, hail or other adverse climate events.

Although it is not mandatory in all areas, the seller may have also prepared a property disclosure statement, which may outline whether the home has been subject to any damage or had repairs done, due to wind, fire or flooding.

Check insurance and financing availability

Speak with a home insurance representative before buying a property.

“Insurance providers often assist consumers with identifying risks that affect premiums or at very worst, denial of coverage or the inability to obtain insurance,” Deborah Moore, broker/owner, with RE/MAX Penticton Realty said via email.

One in ten Canadian households is exposed to flooding but lacks access to flood insurance, according to the Insurance Bureau of Canada. She said you can also ask the seller for their insurance provider and if they’ve had any weather-related claims.

Similarly, there have been examples of some lenders choosing not to offer new mortgages in certain flood-prone areas, Bakos says. If you’re interested in an at-risk area, verify that you’ll be able to obtain financing.

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Protect your property

Look for homes built to be resilient to the risk they face.

If you’re in a flood zone, check for sump pumps and backwater valves. If wildfires are a concern, look for non-combustible fencing, siding, and fire-resistant roof covering.

You can make a home more resilient after you buy it, too. This is sometimes called “home hardening.” Low-cost improvements, like clearing combustible materials from around your home, can make a big difference. Use resources, like those offered by the Intact Centre or Fire Smart Canada, for a full list of protection measures.

Consider the larger community

It can be worth looking into how a municipality is positioned for the future.

Look at infrastructure improvements, such as moving power supply lines below ground, as well as preparedness measures, like flood warning and communication systems, or routine emergency trainings

Watch for new resources

Several new resources are in development, Bakos says, as the federal government is working to create a flood risk score — an online tool where individuals can enter their postal code and see the flood risk for their property, similar to U.S.-based Flood Factor.

Public Safety Canada is also working to update the publicly available flood risk maps across the country.