Climate change is having a direct impact on home insurance rates

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Homeowners and developers can expect premiums to increase, which will affect an already beleaguered housing supply

Last weekend in B.C.’s Kelowna region, the air was still strong with wildfire smoke after a summer of seemingly endless fires, including the fire that destroyed nearly 200 homes in West Kelowna.seasons of the last century,” according to a paper in Nature, written by Canadian academics.. As well, there is an ongoing risk of floods, landslides and earthquakes, depending on the region.

“Global reinsurers price risk for countries and regions around the world. So if you live in a place of high risk, such as California or Louisiana – and now Western Canada – we are seeing reinsurance prices are going up in those areas,” he says. Mr. Stewart is based in Nova Scotia, which experienced catastrophic wildfires and flooding this summer.

“There is some overall cross-subsidization, but most of [the increased cost] is location specific. You are typically paying for your own risk. Earthquake premiums have gone up because in 2019 the federal government realized the impacts from a significant quake in B.C. were double than what was previously understood.”

As well, between B.C. and Nova Scotia alone, there might be 1,000 homes that need to be rebuilt due to disaster.The real estate community is becoming increasingly aware of climate change as an ongoing challenge.] will become increasingly important and get focus,” says Andrew Lis, director of economics and data analytics for the Real Estate Board of Greater Vancouver.

The financial implications of climate change include the impact it has on affordable housing, says Lindsay Brugger, vice-president of urban resilience for the Urban Land Institute in Washington. “I anticipate that consumer demand for resilience will only increase. The market indicators are there. We are already seeing it in some leading developers, some leading master-planned communities.”Kelowna realtor Richard Deacon says in terms of sales it was a slower summer than last year. A couple of his buyers decided to pause their home search because of the wildfires.

 

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