Every year, extreme weather events wreak havoc across Canada, disrupting the lives of tens of thousands. Financial losses from these events have surged, surpassing $7 billion in 2024, due in part to climate change, asset accumulation and more people living in high-risk areas.

Evidence from Canada, the United States and Europe shows that weather-related disasters aren’t experienced equally. The people hardest hit are often those with the fewest resources to cope.

Lower-income and marginalized populations face greater exposure, have fewer resources to prepare or recover and incur a higher proportion of losses not covered by insurance.

Even if they are insured, many people have difficulty covering the deductible because they lack emergency savings. This means damage is not repaired, people live in unsafe or unhealthy conditions and the financial and personal risk of future events is increased.

Insurance helps households recover and can prevent them from falling — or falling deeper — into poverty after a disaster. But across Canada, insurance is becoming costlier and, in some places, harder to get. Between 2019 and 2023, average home insurance premiums rose by 21 per cent overall. For lower-income Canadians, that increase was 40 per cent.

Canada’s growing insurance protection gap is a serious concern, and it’s widening at a time when weather-related disasters are becoming more frequent and more severe.

When households are........

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