The True Cost of Flooding in Canada: Catastrophe Losses Insights
Flooding is a serious threat to Canadian communities. It causes massive property damage and upends lives across the country. In this article, we look at recent catastrophic events and the historical trends that brought us here.
Table of Contents
Historical Trends in Canadian Flood Losses
The Rising Cost of Canadian Water Disasters
1250%
Increase in the average cost of weather disasters in Canada since the 1970s
35+
Catastrophic floods recorded in Canada over the last ten years
With insured losses now averaging over $41 million per event.
Canada has a long history with water. Records going back to the 19th century show major events, like the 1894 flood of the Lower Fraser River valley in British Columbia. However, things have changed. The frequency and severity of these floods have climbed quickly over the last few decades.
This isn’t just bad luck. It is a combination of climate change (more intense rain and faster snowmelt), urbanization, and deforestation that makes it harder for the ground to absorb water.
Recent Catastrophic Events
Total Insured Catastrophic Losses (2024)
$8.5 Billion+
Estimate provided by CatIQ and the Insurance Bureau of Canada
Looking back at 2024 and 2025, it is clear that we are in a new era of risk. In fact, 2024 was recently confirmed as the costliest year on record for insured damage in Canada.
Major Insured Loss Events by Province (2024)
AB (Hailstorm)
$3.0 B
QC (Debby)
$2.7 B
AB (Wildfire)
$1.1 B
ON (Flooding)
$990 M
BC (Freeze)
$180 M
SK (Storms)
$135 M
Key Flood Events (2024–2025)
- Manitoba (September 2025): A torrential storm dumped over 100mm of rain on southeastern Manitoba, flooding streets and basements for the second year in a row.
- Quebec (July 2025): The province grappled with back-to-back thunderstorms that overwhelmed sewer systems in Montreal and Quebec City.
- Toronto (July 2024): A massive rainstorm caused flash floods that led to nearly $1 billion in insured damages.
- Quebec (August 2024): Tropical Storm Debby triggered roughly 70,000 insurance claims—up to 17 times the usual volume.
Charles Brindamour, CEO of Intact Financial Corporation, noted that catastrophe losses have moved well beyond original expectations, forcing the industry to rethink how we price and manage risk.
The Financial Toll of Flooding
$8.5 Billion
Total insured damage from severe weather in 2024 set a new all-time high for Canada.
Underinsurance Gap
Rising costs for materials and labour mean many homeowners might not have enough coverage to fully rebuild.
15x Increase
A typical flood today costs roughly $150 million, compared to just $11 million in the 1970s.
The image information is from Tip of the Iceberg: Navigating the Known and Unknown Costs of Climate Change for Canada
Flood Risk Management and Mitigation
Managing flood risk is a team effort. In 2014, the National Disaster Mitigation Program (NDMP) started with $277.6 million. While this was a great start, the focus is now shifting toward better data and prevention.
Mapping Changes
New frameworks in Quebec could put 30% more homes into designated flood zones by 2026.
Infrastructure Risk
Coastal mapping is revealing major risks to roads and utilities that weren’t previously identified.
Mitigation Planning
Modern planning helps identify which neighbourhoods need better drainage or stronger dikes to prevent losses before they happen.
Mitigation Projects
Direct investment in measures like replacing storm culverts helps build community resilience against intense rain events.
A major hurdle is data sharing. Insurance companies have excellent property-specific data, while cities have data on infrastructure. By working together, we can build a clearer picture of risk, which would eventually lead to lower premiums for homeowners.
Future Outlook: Lessons from the Next Province Over
For those of us in Saskatchewan, we often look to the horizon to see what’s coming. Recently, that “horizon” was southeastern Manitoba, where a September 2025 storm served as a wakeup call for the entire Prairie region. It proved that even when you think you’re prepared, the nature of flooding is changing.
The “Elevated” Threat
On September 11, a slow-moving system stalled over Niverville and Steinbach, dumping up over 140mm of rain in a single night. Dr. John Hanesiak, a professor of atmospheric science, noted that this was an “elevated thunderstorm.” Unlike the storms we usually see in the afternoon, these feed on air high above the ground and can stall in place, repeatedly “reloading” over the same neighbourhoods.
“At first, it was breathtaking: lightning flashing nonstop for almost an hour… But then the heavy rainfall became concerning.” — Anton Shvets, Niverville Resident
The result was a flash flood that saw residential streets underwater by midnight and water pouring into window wells within 15 minutes of the first alert. It’s a scenario that could easily play out in Regina, Saskatoon, or any of our Prairie communities.
Practical Lessons for Homeowners
The Manitoba event highlighted a critical gap between having insurance and being fully protected. Here are the three biggest takeaways:
01
Water Alarms and Sensors: Residents like Bobbi Jo Castaneda credited water sensors for saving their belongings. “Within 15 minutes of the first alert, water was pouring in… and our sump pump was overflowing.”
02
Mind the Coverage Gap: Data shows the average basement flood claim is now $43,000, yet many standard overland flood policies default to limits under $30,000. As Matt Dillon of Surex warns: “The worst time to find out you don’t have the right insurance is after the damage has already happened.”
03
Infrastructure has limits: Even in towns with dikes and diversion gates, localized “convection” can overwhelm the system. Keeping your own yard grading and culverts clear of debris like grass clippings is your first line of defence.
Don’t let a “concerned” forecast catch you off guard.
We can expect more frequent and intense storms in our future. You can find resources for your community at FloodSafe Sask.
Frequently Asked Questions
What are the projected costs of flood damage?
Costs could hit $300 million annually by mid-century and reach a staggering $13.6 billion per year by the end of the century if we don’t adapt.
What was the most costly flood in Canadian history?
The 2013 Southern Alberta Flood remains the most expensive single event, causing about $6 billion in total financial losses.
Disclaimer: The statistics and news videos referenced in this article are based on publicly available information.
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Posted in Home & Tenant on September 6, 2024 by Hope Prost
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