Ontario homeowners add more insurance coverage in 2025 as climate concerns shift: LowestRates.ca survey

• Concern over wind and hail has nearly doubled year-over-year, while flooding has dropped as a top worry among Ontario homeowners.
• Overall concern about extreme weather in Ontario has eased, dipping from 45% in 2024 to 37% in 2025, despite severe weather events.
• Confidence in home insurance coverage has improved, rising from 34% in 2024 to 38% in 2025, driven by better communication and advocacy.

Toronto, ON (Feb. 6, 2025) – Canada’s climate is changing fast, and homeowners are feeling the impact. Between windstorms ripping through Ontario and hailstorms pounding the Prairies, extreme weather events are no longer rare. They’re becoming the new normal.

In 2024, insured losses from extreme weather events in Canada surpassed $9 billion, according to the Insurance Bureau of Canada. As these events become more frequent and severe, the cost of protection — particularly home insurance — is rising sharply.

For example, Ontario home insurance premiums climbed 5.7% in the first quarter of 2025, Applied Rating Index data shows. That’s a noticeable slowdown from last year’s dramatic increase in average premiums, when quarterly hikes ranged from 9% to 13% — but it’s no more welcome on households already squeezed by inflation and high interest rates.

Meanwhile, the number of people who are concerned about specific climate threats continue rising. A new survey from LowestRates.ca shows that anxiety over wind-hail has nearly doubled year-over-year, wildfire worry has ticked up, and wind damage remains top of mind among Ontario homeowners. Because of this, many are reviewing their insurance and updating policies to make sure they’re better protected.

Here’s what the survey reveals:

Those concerned about flooding decrease 3.2 percentage points while concerns over wind, hail, and wildfire tick up by 1.8% combined

According to the survey, flooding alone is no longer as much of a top concern for Ontario homeowners. In 2024, 8.7% of respondents listed it as a concern, but this year, only 5.5% of respondents have.

Instead, our survey shows that attention is shifting to other severe weather threats:

• Wind: Up from 6.6% to 7.2%
• Hail: Nearly doubled, from 0.9% to 1.7%
• Wildfire: Rose from 1.4% to 1.8%
• Concern about a combination of the above: Decreased from 27.76% to 21.28%

Steven Harris, licensed insurance broker and LowestRates.ca expert, says the drop slight decline in flood anxiety reflects improved public awareness and prevention efforts, such as better zoning policies and flood-warning systems, rather than a decrease in risk.

Yet the survey shows that overall concern of extreme weather in Ontario has eased, dipping from 45% in 2024 to 37% in 2025.

“The severity and frequency of weather events hasn’t let up,” says Harris. “But I think people’s attention is elsewhere because of affordability concerns, tariffs, or global issues.”

These shifting perceptions come despite a year marked by severe weather. In 2025, Ontario faced two major weather disasters, according to the Government of Canada . At the end of March in Ontario, a massive ice storm coated power lines and trees in thick ice, knocking out electricity for 380,000 customers and forcing several communities to declare states of emergency.

Then in late June, powerful thunderstorms swept through central and eastern Ontario, bringing torrential rain and fierce winds that flattened trees, washed out roads, and left tens of thousands without power.

As Dan Sandink, Director of Research at the Institute for Catastrophic Loss Reduction, explains, the risks vary significantly by region.

“It really depends on where you live,” he says. “In Canada, the main causes of physical damage to buildings and possessions are high wind, hail, wildfire, and various types of flooding.”

More homeowners are purchasing additional endorsements

More homeowners are adding extra protection beyond standard policies. In 2025, 12% reported purchasing at least one additional endorsement, up from 9% in 2024. Popular add-ons include overland water, sewer backup, and, in hail- or wildfire-prone regions, specialty endorsements.

“Products have evolved,” Harris explains. “Overland water [insurance] covers water entering above ground level. Groundwater and sewer backup are separate. Each has its own limits and exclusions.”

Still, 77% of Ontario homeowners surveyed haven’t added any endorsements, leaving potential gaps in their climate coverage.

Harris explains that, unlike auto insurance, property insurance isn’t regulated, which means insurers have more flexibility in designing their products. While there are similarities across policies, each company tailors its offerings to stay competitive, leading to differences that can be confusing for homeowners to understand.

For homeowners, reviewing what your base policy covers — and where it falls short — can mean the difference between a covered loss and a costly repair.

Confidence in insurance coverage improves from 34% in 2024 to 38% in 2025

Despite the growing risks mentioned above, homeowners are feeling slightly more assured about their insurance protection against extreme weather. The survey shows that confidence rose from 34% in 2024 to 38% in 2025, which Steven Harris credits to strong industry advocacy and clearer communication about risks.

“Brokerages are focused on educating the communities they serve. Overall, there’s a strong level of advocacy happening,” Harris says.

Engagement is also trending upward. Among homeowners who received information about policy changes or endorsements, 17% reviewed the material in 2025, up from 13% the year before.

Still, Harris warns that the complexity of insurance remains a major hurdle for consumers.

“Insurance products are complex—you need a license to advise on them,” he explains. “Consumers shouldn’t just accept their renewal and hope for the best. Ask questions. Work with a licensed representative. Understand your policy: What’s covered? Where are the gaps? What are the exposures? Are better coverages available? These are critical questions—even if not everyone takes the time to ask them.”

Is your home ready for wind, hail, and wildfire?

Extreme weather is no longer rare, and homeowners who plan ahead can save thousands of dollars in repairs and insurance headaches.

“The more you understand local hazards, the better,” Sandink advises.

He recommends checking municipal or provincial flood maps before buying and inquiring about property-specific risks, such as flood exposure or coverage exclusions.

“Before you purchase, ask about available coverages and whether resilience upgrades could earn discounts or better terms,” he says. Even small improvements — like impact-rated roofing in wind or hail-prone areas or installing backwater valves can make a big difference at minimal cost.

Sandink notes that building codes often lag behind emerging weather risks and are designed primarily to protect lives, not to prevent property damage. Because of this, he urges homeowners to be proactive: “Many resilience measures can be added during construction or renovation at little extra cost, but you have to request them, builders don’t always include these features.”

For existing homes, he adds, “maintenance projects, like replacing a roof or siding, are the best time to incorporate resilience upgrades without major added expense.”

With premiums rising and deductibles shifting, preparation is no longer optional. Understanding coverage details, exploring endorsements, and investing in resilience upgrades are becoming essential steps to protect homes against increasingly severe weather.

Learn more:

• Can your home become uninsurable due to climate risk?
• What is an insurance endorsement or rider? 
• As the climate changes, check these home insurance blind spots  
• How to find a good home insurance policy if you live in a wildfire zone.

Survey Methodology

The survey was conducted by LowestRates.ca, polling 798 Ontario homeowners between December 13 and December 16, 2025. Participants were users of LowestRates.ca’s home insurance quoter.

About LowestRates.ca

LowestRates.ca is a Toronto-based company that helps Canadians make better financial decisions by saving them time and money on personal finance products. Launched in 2012, we have saved millions of Canadians over $1 billion in fees and interest to date. We make it easy for consumers to select the right insurance, mortgage, loan, and credit card offer by comparing rates on these products from 75+ Canadian providers — all for free. LowestRates.ca is the largest impartial and independent financial rate comparison site in Canada. Our product recommendations are based solely on finding consumers the best offers and lowest prices for their unique needs. We fuel our partners’ growth and success by providing them with consumer leads that are perfectly matched for their offer. Partners have told us that purchasing leads from LowestRates.ca is the most effective marketing channel for them to grow at scale. Together with our partners of all sizes and types, we are improving financial literacy and redefining the Canadian financial services industry by making it easier to connect consumers with the right partner at the right price. If you’re a consumer, discover how to save now at LowestRates.ca.

Source: LowestRates.ca