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.

Insured losses from catastrophic weather have risen sharply over the past few decades. The Intact Centre on Climate Adaptation notes that catastrophic insured losses associated with extreme weather in Canada ranged from about $250 million to $450 million per year from 1983 to 2008, and increased to roughly $2 billion per year from 2009 to 2022.

That’s just the average. In 2024, the Insurance Bureau of Canada reported that insured damage caused by severe weather events surpassed $8 billion (about $8.5 billion, based on CatIQ estimates) in a single year — for the first time ever.

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“The cost of uninsured losses can be three to four times higher than insured losses,” says Kathryn Bakos, managing director, finance and resilience with the Intact Centre on Climate Adaptation in Waterloo, Ontario.

One example is a flooded basement, adds Bakos, “an average cost of a flooded basement in Canada is $54,000." And, depending on your policy limits and exclusions, you may be responsible for a significant share of repair costs.

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.

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

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 and review local hazard reports available in some municipalities — these sources can also provide a sense of the climate risks that exist in the region.

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.

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. Public reporting and federal analysis also suggest that roughly 10% of homes may face limited eligibility or availability for certain types of residential flood coverage (depending on location and insurer).

Moore 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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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.

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

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. In the meantime, Natural Resources Canada’s Flood Hazard Identification and Mapping Program (FHIMP) is working with provinces and territories to create or update flood hazard maps for higher-risk areas (active from 2021 to 2028).