In Kamloops, BC, one of the cities facing the highest wildfire risk this year, insurance premiums nearly doubled between 2023 and 2025
Wildfires have driven up home insurance premiums in Canada’s riskiest markets, with new research showing these costs now take up a bigger chunk of homeowners’ monthly budgets than ever before.
In Kamloops, BC, one of the cities facing the highest wildfire risk this year, insurance premiums nearly doubled between 2023 and 2025.
“The average annual insurance premium in Kamloops ($3,743) now works out to nearly a tenth of a typical mortgage payment on a home in the city, roughly five times the national average,” the joint report from Wahi and MyChoice found.
Rising costs in wildfire zones
The study analyzed real estate and insurance data across 21 high-risk markets. It found that impact is most acute in Alberta’s Medicine Hat, where the average monthly home insurance premium ($3,875) now amounts to nearly one-fifth, or 19%, of the typical mortgage payment. This is the highest ratio among the cities analyzed.
In Wood Buffalo, which includes Fort McMurray, premiums ($3,367) have climbed to 16% of average mortgage payments, a region still marked by the memory of the 2016 wildfire evacuation that displaced nearly 90,000 residents.
Four other cities—Prince George, BC, Timmins and Kenora in Ontario, and Lethbridge, Alberta—have seen insurance premiums exceed 10% of the average local monthly mortgage payment.
“Homeownership costs are no longer just about mortgage payments—climate risk is rapidly becoming a key financial factor,” said Aren Mirzaian, CEO of MyChoice.
“Our joint study with Wahi shows that in Canada’s wildfire-prone cities, insurance premiums are rising faster than home values, directly impacting housing affordability.”
Industry experts say more frequent and severe weather is driving up insurance claims. Insurance Bureau of Canada (IBC) reported a 379% increase in annual insurable losses over the past decade, with a record 228,000 claims. That's 406% above the 20-year average.
Broader affordability pressures
The report arrives as Canada endures some of its worst wildfire seasons on record.
According to the Canadian Climate Institute, 2023 was the most destructive year ever, with an area larger than the three Maritime provinces combined razed by fire. The trend continued into 2024, which ranked as the sixth most severe season.
While insurance costs have spiked by an average of 12% nationally since 2023, property values in most wildfire hot spots have also climbed, further stretching household budgets.
In Kamloops, home prices rose about 10% over two years, compounding the effect of rising premiums. Only Kenora saw a decline, with home values dropping 11% during the study period.
Meanwhile, new data showed the August wildfire in Kingston, Newfoundland and Labrador caused over $70 million in insured losses—the biggest total in Atlantic Canada this year.
