Toronto, ON (Apr. 21, 2026) – With extreme rainfall events becoming more frequent and severe across Canada, a new report from Wahi, a leading digital real estate platform, and MyChoice, an insurance-rate aggregator, reveals how flooding is driving up home insurance costs in Ontario.
The study highlights sharp increases – upwards of 20% since 2024 – in home insurance premiums across flood-prone markets, including parts of the Greater Toronto Area, adding new pressure to housing affordability.
Highlights from the new report include:
- Ajax: Insurance premiums have surged 26% since 2024, the highest increase among high-risk markets, alongside the province’s highest flood risk score (4.6/5).
- Markham: Premiums climbed 22%, reflecting elevated flood exposure (risk score: 3.9/5).
- Brockville & Burlington: Premiums rose 21% and 20%, respectively, in markets with above-average flood risk.
- Thunder Bay & North Bay: Despite lower flood risk scores, premiums jumped 31% and 27%, respectively, pointing to additional cost pressures such as rebuilding expenses and wildfire risk in northern Ontario.
- Sault Ste. Marie: Insurance premiums now represent approximately 12% of a typical mortgage payment, underscoring how insurance costs are more of a burden to overall housing costs in some of the province’s more affordable markets.
“Cost of living is understandably top of mind for Ontarians, but it’s worth noting that the actual amount being paid in dollars on home insurance in many markets may be less than you think,” says Wahi Economist Ryan McLaughlin. “The average Ontario household still pays less than $1,500 per year on home insurance.
Discussion around Canadian housing affordability is often focused on supply, demand, and interest rates, but climate-related risks – particularly flooding – are increasingly contributing to rising ownership costs.
“Affordability isn’t just about what you pay for a home anymore – it’s increasingly about what it costs to protect it,” says Aren Mirzaian, CEO of MyChoice. “What we’re seeing in flood-prone markets is that insurance is becoming a more material part of the monthly cost, particularly in areas that are traditionally viewed as more affordable.”
The full report is available here.
About Wahi
Wahi is a digital real estate platform that redefines the homebuying experience by putting more power into consumers’ hands by combining cutting-edge tech and market data with expert REALTORS®.. For more information, visit wahi.com.
About MyChoice
MyChoice is a Toronto-based Insurtech company that equips brokers and insurance companies with tools they need to excel in operations and client acquisition. Their rate comparison site MyChoice.ca gives Canadians access to competitive auto, home, and life insurance rates. MyChoice blends their industry knowledge with cutting-edge technologies to build solutions that significantly enhance brokerage and insurance company processes and workflows. For more information, visit www.mychoice.ca.
Source: Insurance Bureau of Canada (IBC)
Tags: flood, home insurance, MyChoice, Ontario
