Aging Housing Stock Fuels Insurance Cost Surge Across Canada
A comprehensive new analysis from MyChoice Financial Inc. reveals that Canada's aging residential properties are creating significant upward pressure on home insurance premiums nationwide. The report indicates that insurance inflation has exceeded the 2025 consumer price index of 2.1 percent in all provinces except New Brunswick and Prince Edward Island, highlighting a concerning trend for homeowners across the country.
Deferred Maintenance Creates Heightened Risk Profile
Aren Mirzaian, chief executive of the insurance technology company, explained the fundamental connection between aging properties and rising costs. "Older homes with deferred maintenance pose higher risks for things like water damage, electrical fires, or structural failure," Mirzaian stated in the report. "When repair costs escalate, homeowners may postpone necessary fixes, which increases overall risk exposure and ultimately drives premium prices higher."
The report identifies three Canadian cities facing particularly severe challenges: Regina, Ottawa, and London. These urban centers share three critical characteristics that contribute to their elevated risk status:
- A high percentage of older residential properties requiring significant repairs
- Exceptionally high renovation and repair costs
- Insurance inflation rates exceeding 10 percent
Regional Variations in Insurance Cost Increases
Ottawa emerges as the city experiencing the most dramatic insurance premium increases, with costs climbing 14.3 percent. This surge correlates strongly with the city's housing demographics, where approximately 20 percent of homes were constructed before 1960. The capital's aging housing stock presents insurers with greater potential liabilities, translating directly to higher premiums for homeowners.
Regina faces its own unique challenges, with renovation inflation reaching 6.7 percent. This cost escalation for repairs and maintenance contributes significantly to the insurance premium increases affecting Saskatchewan's capital city.
In contrast, Canada's largest metropolitan centers show somewhat more stability. Vancouver and Toronto, despite being epicenters of the country's soft housing market, benefit from relatively newer housing stock and lower renovation inflation. Insurance premiums in these cities increased by 9.94 percent and 8.12 percent respectively, representing more moderate rises compared to the highest-risk urban areas.
Provincial Insurance Inflation Patterns
The national picture reveals significant provincial variation in insurance cost increases. While most provinces experienced insurance inflation exceeding the general consumer price index, two Atlantic provinces bucked this trend:
- New Brunswick recorded negative insurance inflation of minus 0.25 percent
- Prince Edward Island showed minimal insurance inflation of just 0.69 percent
These exceptions highlight how regional housing characteristics and market conditions can influence insurance pricing dynamics differently across the country.
Multiple Factors Converge to Drive Premium Increases
The report notes that insurance companies were already implementing rate hikes due to growing losses from increasingly frequent extreme weather events. According to data from the Insurance Bureau of Canada, weather-related events resulted in a record $8.5 billion in insurance payouts during 2024. Although this figure dropped to $2.4 billion in 2025, the cumulative impact of climate-related claims continues to influence premium calculations nationwide.
MyChoice suggests that Canadian homeowners may soon see insurance incentives targeting older home renovations or retrofit discounts. Such programs could help mitigate insurance risks associated with aging properties while providing financial relief to homeowners facing premium increases.
Practical Recommendations for Homeowners
The report offers several practical suggestions for homeowners seeking to manage their insurance costs:
- Address minor repairs promptly to prevent them from developing into more significant, costly problems
- Request professional inspections to identify potential issues before they result in insurance claims
- Research repair quotes thoroughly and explore bundled service packages for potential savings
These proactive measures can help homeowners maintain their properties more effectively while potentially moderating insurance premium increases over time.
