Residential construction costs in Canada have skyrocketed by 66% since 2019, leading to a 24% increase in home replacement costs.
This situation is placing significant pressure on home insurance premiums, affecting homeowners across the country.
At the same time, the number of claims for personal property damage has surged, and repair costs related to natural disasters have skyrocketed to unprecedented levels. These factors, combined with a shortage of skilled labor in the construction sector, have created conditions where insurers have no choice but to adjust premiums to reflect these heightened risks.
In response to these challenges, the Insurance Bureau of Canada (IBC) is calling for coordinated action. It urges governments to invest in resilient infrastructure, strengthen preventive measures, and promote policies aimed at mitigating the impacts of natural disasters. These initiatives are crucial to stabilizing home insurance premiums and protecting consumers from disproportionate increases.
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