With rainfall events becoming more frequent and severe, a new report from a digital real estate platform, and an insurance-rate aggregator, reveals how flooding is driving up home insurance costs in Durham and across Ontario.
The study highlights sharp increases ー upwards of 20 per cent since 2024 ー in home insurance premiums across flood-prone markets, including parts of the Greater Toronto Area (GTA), adding new pressure to housing affordability, according to the joint report by Wahi and MyChoice.
Highlights from the new report include:
- Ajax: Insurance premiums have surged 26 per cent since 2024, the highest increase among high-risk markets, alongside the province’s highest flood risk score (4.6/5).
- Markham: Premiums climbed 22 per cent, reflecting elevated flood exposure (risk score: 3.9/5).
- Brockville & Burlington: Premiums rose 21 per cent and 20 per cent, respectively, in markets with above-average flood risk.
- Thunder Bay & North Bay: Despite lower flood risk scores, premiums jumped 31 per cent and 27 per cent, 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 per cent 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.
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.”