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    Nov 2, 2026
    Climate Risks Are Reshaping the Insurance Industry: Why Insurers and Governments Must Act Now

    Climate change is no longer a distant concern for the insurance industry. Its financial consequences are already becoming visible in markets worldwide, as increasingly severe wildfires, floods and other natural disasters make it harder to insure homes, businesses and infrastructure. From California communities exposed to wildfires to flood-threatened areas across the United Kingdom, insurers are confronting a growing challenge: determining how much risk they can realistically cover and at what cost.

    The implications extend well beyond insurance premiums. When properties become difficult or impossible to insure, the consequences can spread throughout the financial system. Mortgage lenders may hesitate to finance properties without adequate coverage, real estate values can decline, investors may reconsider their exposure to vulnerable regions, and local economies can face mounting financial pressure. As a result, climate-related insurance challenges are increasingly becoming a concern for governments, financial institutions, businesses and households alike.

    The Growing Climate Protection Gap Is Becoming a Financial Threat

    The difference between the economic losses caused by natural disasters and the portion covered by insurance is known as the protection gap. This measure highlights how financially exposed individuals, businesses and governments remain when extreme weather events occur. According to estimates from Swiss Re , the global natural catastrophe protection gap reached approximately $424 billion in 2025. This figure illustrates the enormous financial burden that remains uninsured following disasters and highlights the limitations of existing insurance arrangements in protecting communities against escalating climate risks.

    The problem becomes particularly serious when insurers reduce their exposure in high-risk locations or withdraw certain coverage options altogether. Without insurance, property owners may struggle to secure mortgages or other forms of financing. Reduced demand for properties in vulnerable areas can place additional pressure on housing prices, while businesses may find it increasingly difficult to attract investment or maintain operations. These developments can create a chain reaction in which climate-related losses gradually undermine financial stability. What initially appears to be an insurance market problem can eventually affect the availability of credit, investment activity and the economic health of entire communities.

    Affordable Insurance Does Not Necessarily Mean Lower Risk

    Rising insurance premiums and limited coverage options have become major concerns for households facing increasing living costs. Understandably, many consumers expect insurers and governments to maintain affordable protection, particularly in regions where climate-related disasters are becoming more frequent. However, keeping premiums artificially low should not be mistaken for an effective climate resilience strategy. Insurance prices are intended to reflect the potential financial consequences of risk. When those signals are suppressed, homeowners, businesses and policymakers may underestimate the level of protection required.

    This creates a difficult balance for the insurance industry. On one hand, insurers must maintain financially sustainable operations and account for the growing likelihood of large claims. On the other, higher premiums can make coverage inaccessible to households that are already financially vulnerable. Addressing this challenge requires more than simply controlling insurance prices. Governments and insurers need coordinated approaches that preserve access to coverage while encouraging investments in prevention, stronger infrastructure and disaster preparedness.

    International experience offers several useful examples. In the United Kingdom, Flood Re operates as a partnership between the government and insurance industry, helping make flood insurance more accessible to eligible households in high-risk areas through a system that redistributes part of the financial exposure.

    France has also developed government-supported arrangements for natural catastrophe coverage, integrating insurance protection with public-sector involvement. Although these systems have different structures and limitations, they demonstrate that governments can play an important role in maintaining insurance availability when private markets face significant pressure.

    Accurate Climate Risk Models Are Essential for Better Decisions

    Insurance companies rely heavily on catastrophe modelling, actuarial analysis and climate projections to estimate potential losses and determine appropriate premiums. These tools help insurers understand how changing weather patterns could influence future claims and whether particular properties or regions remain insurable. Although climate models cannot predict every event with absolute precision, their role in financial planning is becoming increasingly important. Decisions based on incomplete or overly optimistic assumptions can leave insurers, governments and property owners poorly prepared for future losses.

    Concerns about the reliability of climate risk assessments have also emerged within the insurance industry. A recent memorandum published by Inside Track, prepared by senior insurance and reinsurance professionals from the United Kingdom and Europe, raised questions about whether some catastrophe modellers and actuaries are being encouraged to reduce their future risk estimates to avoid creating concern or disrupting commercial negotiations. The document specifically highlights the possibility that professionals may face pressure to present less alarming projections, even when the available evidence indicates a greater level of exposure. Such practices could weaken the industry’s ability to identify emerging threats and communicate their financial implications accurately.

    For insurers, maintaining confidence in risk assessment requires transparency and technical independence. Climate projections should be incorporated into modelling processes, assumptions should be regularly reviewed, and uncertainty should be acknowledged rather than used as a reason to minimize projected losses. Better modelling does not mean assuming that every forecast will become reality. Instead, it means using the strongest available scientific evidence to understand a range of possible outcomes and prepare financial strategies accordingly.

    A New Framework Could Help Identify Future Insurability Challenges

    One of the major obstacles to addressing climate-related insurance risks is the lack of a consistent way for different industries to evaluate whether an asset, location or business remains insurable over the long term. The insurance industry often has access to detailed information about physical risks, but this knowledge does not always translate into decisions made by property developers, lenders, investors or government authorities.

    To address this disconnect, the Centre for Sustainable Finance at the University of Cambridge has introduced the ClimateWise Insurability Readiness Matrix. The framework is designed to help insurers, financial institutions, developers and policymakers assess the factors that determine whether a property, region or economic sector can maintain access to insurance as climate risks evolve.

    The matrix evaluates seven key areas, including the quality of risk data and modelling, physical resilience, policy alignment and the systems available to support recovery after disasters. Each component receives a traffic-light assessment, accompanied by an indication of whether conditions are improving or deteriorating and recommendations for further action. This approach provides stakeholders with a shared framework for identifying weaknesses before they lead to insurance market withdrawal. Rather than treating rising premiums or reduced coverage as isolated problems, the framework encourages decision-makers to examine the underlying conditions that make certain locations increasingly difficult to insure. Its broader objective is to help insurers remain active in challenging markets by identifying practical improvements that can reduce exposure and strengthen long-term resilience.

    Climate Risk

    International Examples Show That Climate Resilience Can Improve Insurance Access

    Experiences from several countries demonstrate that targeted investments, better information and coordinated policies can make a meaningful difference to insurance availability.

    Nigeria: Better Flood Data Supports More Accessible Coverage

    Lagos, one of Africa’s largest urban centres, has faced significant challenges associated with flooding and growing urban exposure. Improving access to reliable flood information has helped insurers better understand the distribution of risk across the city. According to a case study published by the United Nations Development Programme , improved flood data enabled insurers to reduce technical premium estimates and supported the introduction of the city’s first parametric flood insurance product.

    Unlike conventional insurance, parametric coverage pays out when a predefined event or measurable threshold is reached. For example, a policy may trigger payment when rainfall or flood levels exceed an agreed threshold, rather than requiring a lengthy assessment of individual property damage. This approach can help accelerate financial assistance following disasters, particularly in areas where traditional claims assessments are difficult or time-consuming.

    United States: More Resilient Homes Can Help Maintain Insurance Availability

    The experience of Paradise, California, illustrates the devastating consequences of wildfire exposure. The 2018 Camp Fire killed 85 people and destroyed more than 18,000 structures, leaving a lasting impact on the local community and its housing market. Rebuilding efforts have increasingly focused on reducing the vulnerability of homes to future wildfires. One initiative involves the Insurance Institute for Business & Home Safety’s Wildfire Prepared Home standard, which establishes measures intended to improve a property’s resistance to wildfire damage.

    Such measures can include reducing combustible materials around buildings, improving roof protection and addressing other features that may allow flames or embers to ignite a home. By encouraging stronger construction and property protection standards, initiatives like this can help reduce potential insurance losses while supporting the recovery of communities exposed to recurring wildfire threats.

    Chile: Financial Incentives Encourage Greater Insurance Participation

    Chile provides another example of how public policy can influence insurance penetration. A combination of tax incentives supporting insurance purchases and property retrofitting helped increase household insurance penetration from 45% to 65%, according to the Insurance Development Forum’s analysis.

    This example demonstrates that improving insurance coverage does not necessarily depend on expanding traditional insurance products alone. Financial incentives can encourage households to obtain protection while simultaneously investing in measures that reduce their exposure to physical damage.

    Across these three examples, a common lesson emerges: improvements in information, property resilience and financial incentives can reinforce one another. Addressing one weakness can create opportunities to improve other parts of the insurance system.

    Climate Resilience Could Also Influence Lending and Borrowing Costs

    The relationship between insurance and climate risk is becoming increasingly important for banks and other financial institutions. A property exposed to flooding, wildfire or other natural hazards may represent a greater financial risk, particularly if it lacks adequate insurance or sufficient physical protection.

    One emerging concept is resilience-adjusted credit risk. Under this approach, lenders would consider the investments made by individuals and businesses to reduce their exposure to climate-related hazards when assessing borrowing conditions.

    For example, a homeowner who installs flood barriers, improves drainage systems or upgrades a property to meet stronger wildfire protection standards may present a lower level of physical risk than someone with an otherwise comparable property that has received no such improvements.

    Recognizing these investments could encourage lenders to offer more favourable financing terms to borrowers who actively reduce their vulnerability. It could also create additional financial incentives for businesses to strengthen buildings, infrastructure and operational systems.

    For this approach to work effectively, insurers will need to collaborate with banks, investors, businesses and public authorities. Insurance data and risk expertise can help financial institutions distinguish between properties that are becoming more vulnerable and those that are actively improving their resilience.

    Insurers Need a Greater Role in Climate Policy and Urban Planning

    Insurance companies possess substantial information about the financial consequences of physical hazards. Their experience in evaluating claims, estimating potential losses and identifying high-risk locations gives them an important perspective on how communities should prepare for climate-related events.

    However, this expertise is most valuable when it influences decisions before major losses occur. Building regulations, land-use policies, infrastructure investments and lending standards can all benefit from a better understanding of insurance risk assessments.

    For instance, local authorities could use information from insurers to identify areas where construction standards need strengthening or where additional flood protection infrastructure is necessary. Developers could incorporate resilience measures into new projects, while financial institutions could consider long-term climate exposure when evaluating investments.

    Insurers should therefore be more actively involved in discussions between governments, financial institutions and other economic sectors. Their contribution should extend beyond providing coverage after losses occur. They can also help shape the policies and investment decisions that determine how vulnerable communities will be in the future.

    The Future of Insurance Depends on Taking Climate Risk Seriously

    Climate change is already influencing the availability and affordability of insurance across different markets. The growing protection gap, increasing pressure on premiums and concerns about the long-term insurability of certain locations indicate that traditional approaches may no longer be sufficient.

    However, the situation is not without solutions. Better catastrophe modelling, stronger property standards, government-supported insurance arrangements and closer cooperation between insurers and financial institutions can all help reduce the financial consequences of climate-related disasters.

    For homeowners and businesses, this also highlights the importance of understanding the risks associated with their properties and ensuring that their insurance coverage reflects their actual exposure. As climate conditions evolve, reviewing policy limits, exclusions and available protection options can become an increasingly important part of financial planning.

    Ultimately, the insurance industry’s ability to respond to climate change will depend not only on how accurately it identifies emerging risks, but also on how effectively that information is shared and translated into practical action. Recognizing the warning signs early gives governments, businesses and households a better opportunity to protect their assets and maintain financial security.

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    As climate-related risks continue to influence insurance markets, having appropriate coverage is an important part of protecting your financial future. Whether you are looking for home, life or other personal insurance solutions, understanding your coverage options can help you prepare for unexpected events.

    Visit Bonjour Assurance to explore your insurance options and get a quote that matches your needs.

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    Oct 23, 2026
    The Real Cost of Buying Your First Home in Canada: A Gen Z Guide

    Buying your first home involves much more than saving for a down payment. From mortgage insurance and closing fees to property taxes, repairs, and ongoing maintenance, young Canadians need to understand the full financial commitment before becoming homeowners.

    For many Canadians in Generation Z, buying a home represents an important milestone. It means having a place of your own, greater control over your living space, and the opportunity to build equity over time. Moving from renting to homeownership can feel like a major step toward financial independence.

    However, the purchase price is only one part of the equation. Even after securing mortgage approval and saving for a down payment, buyers must prepare for a range of additional expenses that can add thousands of dollars to their initial costs. Once the purchase is complete, ongoing bills, maintenance, insurance, and unexpected repairs become part of everyday life.

    For young Canadians planning to enter the housing market, understanding these expenses before making an offer can help prevent financial stress later. This guide breaks down the costs of buying a first home in Canada, explains what to budget for before and after closing, and outlines practical ways to determine whether homeownership fits your financial goals.

    1. Understanding Your Down Payment and Mortgage Costs

    The down payment is often the first major financial hurdle for a first-time homebuyer. In Canada, the minimum required amount depends on the purchase price of the property. Under current federal guidelines, the minimum down payment is generally calculated as follows:

    • Homes priced at $500,000 or less: At least 5% of the purchase price.
    • Homes priced above $500,000 but below $1.5 million: At least 5% of the first $500,000 and 10% of the remaining amount.
    • Homes priced at $1.5 million or more: At least 20% of the purchase price.

    These minimums do not mean that every buyer will qualify for a mortgage. Lenders also assess income, existing debt, credit history, and other financial factors. Review the Financial Consumer Agency of Canada’s down payment guidelines before estimating how much you need to save.

    Consider a home priced at $750,000. The minimum down payment would be $50,000: $25,000 for the first $500,000 and another $25,000 for the remaining $250,000. A buyer choosing to put down 10% would contribute $75,000 instead.

    The larger the down payment, the smaller the mortgage balance will generally be. A smaller balance can mean lower monthly payments and less interest paid over time. However, buyers should avoid using every dollar of their savings for the purchase, as they will also need money for closing costs, moving expenses, and emergencies.

    Do You Need Mortgage Default Insurance?

    If your down payment is less than 20% of the purchase price, you will generally need mortgage default insurance on an eligible residential property. This insurance protects the lender if the borrower defaults; it does not protect the homeowner against damage to the property or replace home insurance.

    Although it is often called CMHC insurance, mortgage default insurance is also available through other approved providers. The premium is generally calculated as a percentage of the mortgage amount, with the rate depending on the loan-to-value ratio and the applicable insurance program.

    For example, consider a $750,000 home purchased with a $75,000 down payment. The mortgage before insurance would be $675,000. Under the standard CMHC premium schedule, a 3.1% premium would equal $20,925.

    That amount can usually be added to the mortgage rather than paid entirely upfront. In this illustration, the mortgage balance would increase to $695,925, before any applicable provincial sales tax on the insurance premium. In Ontario, Quebec, and Saskatchewan, such tax may apply and must be paid separately. Premium rates can also differ for eligible 30-year insured mortgages and other programs.

    Adding the premium to your mortgage can make the initial payment more manageable, but it increases the amount on which you pay interest. For illustration, financing a $20,925 premium at a 5% annual mortgage rate over 25 years could result in approximately $36,500 in total payments attributable to that premium, including interest. Actual costs depend on the lender’s terms and the applicable mortgage rate.

    A larger down payment may help you avoid mortgage default insurance altogether, provided you meet the applicable requirements. Before deciding how much to put down, compare the potential savings from avoiding the premium with the need to maintain an emergency fund. The CMHC mortgage loan insurance guide provides additional information about premiums and eligibility.

    2. Closing Costs: The Expenses Buyers Often Overlook

    Saving for a down payment is important, but it is not enough. Buyers must also budget for closing costs, which are expenses associated with completing the transaction and legally transferring ownership.

    Land Transfer Taxes

    Land transfer taxes can be one of the largest additional expenses when purchasing a property. The rules and rates depend on the province, and some municipalities charge their own tax in addition to the provincial amount. Toronto, for example, has both provincial and municipal land transfer taxes. Eligible first-time buyers may qualify for rebates that reduce the amount payable, but the size of the benefit depends on the applicable rules.

    For a $750,000 home in Toronto, the combined land transfer taxes would be $22,950 before eligible first-time buyer rebates. Assuming the buyer qualifies for the maximum $4,000 provincial rebate and $4,475 Toronto rebate, the net amount would be $14,475. This example illustrates why location matters when estimating the upfront cost of a property. Buyers should confirm their eligibility and calculate the amount using the official Ontario land transfer tax information and City of Toronto tax rates and fees.

    Legal Fees and Title-Related Expenses

    A real estate lawyer or notary, depending on the province, helps complete the purchase, review documents, register the transfer, and handle mortgage-related paperwork. Legal fees, title insurance, registration charges, and other disbursements can add several hundred to several thousand dollars to the total.

    For preliminary budgeting, you might set aside $500 to $2,500 for legal services and related expenses, although the actual amount can be higher depending on the transaction and location. Ask for a detailed estimate before choosing your legal representative.

    Home Inspection and Other Pre-Closing Expenses

    A home inspection can identify potential problems with the roof, plumbing, electrical systems, foundation, and other components of the property. While it may not be mandatory in every transaction, it can help buyers understand the condition of the home before committing to the purchase. A typical inspection might cost approximately $300 to $600, depending on the property and the scope of the service. Other potential expenses include an appraisal, a survey, title insurance, and condominium document reviews.

    Buyers should also account for adjustments on the closing statement. For example, if the seller has already paid property taxes or certain utility expenses for a period extending beyond the closing date, the buyer may need to reimburse the seller for the applicable portion.

    Property Taxes and Home Insurance

    Property taxes are an ongoing ownership expense, but buyers may also need to settle a prorated amount at closing. Annual bills vary considerably by municipality, property assessment, and local tax rates. Check the relevant municipality’s website to estimate the cost for a specific home.

    Home insurance is another essential consideration. Mortgage lenders generally require appropriate property insurance to be in place by the time the buyer takes possession. The premium depends on factors such as the home’s location, construction, replacement cost, claims history, selected coverage, and exposure to risks such as flooding.

    Obtain a home insurance quote before closing instead of relying on a broad national average. Make sure the policy provides suitable protection for the property and belongings, and review exclusions, deductibles, and optional coverage carefully.

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    3. The Costs That Begin After You Move In

    Getting the keys to your new home is a major milestone, but ownership brings additional expenses that may not appear in the original mortgage calculation. Planning for these costs helps ensure that the transition from renting to owning remains financially manageable.

    Moving and Setup Expenses

    Professional movers, rental trucks, fuel, packing supplies, and temporary storage can quickly add to your costs. A straightforward local move may cost a few hundred dollars, while a larger home or a long-distance move can cost considerably more. Utility connections and service setup may also require upfront payments. Electricity, natural gas, water, internet, and other services can have different fees and billing arrangements depending on the provider and location. Request quotes from moving companies, confirm what is included, and leave room in your budget for expenses that may arise on moving day.

    Monthly Utilities and Household Bills

    Homeowners are responsible for a range of recurring household expenses. Electricity, heating, cooling, water, internet, and waste collection can add several hundred dollars to monthly spending, although costs vary substantially based on the home and the local climate.

    Seasonal changes can be particularly important in Canada. Heating costs may rise during winter, while air conditioning can increase electricity consumption during warmer months.

    Before purchasing a property, ask about typical utility bills where possible. A larger home may offer more living space, but it can also require more energy, maintenance, and money to operate.

    Repairs, Appliances, and Renovations

    Even a well-maintained home can require unexpected work. Plumbing problems, roof leaks, appliance failures, and heating or cooling issues can create expenses soon after moving in.

    Smaller repairs may cost only a few hundred dollars, while replacing major appliances or repairing structural components can cost thousands. Cosmetic improvements, such as painting, flooring, lighting, and new furniture, can also add up quickly.

    It is useful to separate necessary repairs from optional upgrades. Address safety issues and essential maintenance first, then plan renovations according to your available budget. Avoid financing nonessential improvements unless you understand the additional costs and repayment obligations.

    Condo and Strata Fees

    Buyers considering a condominium or certain townhouse communities should investigate monthly condo or strata fees before making an offer. These fees may cover maintenance of common areas, building services, landscaping, snow removal, shared amenities, and contributions to a reserve fund.

    The amount depends on the property, the services provided, and the building’s financial position. A property with attractive amenities may carry higher fees, while an older building may face substantial future maintenance requirements.

    Review the condominium corporation’s financial statements, reserve fund information, meeting records, and fee history where applicable. Ask whether major repairs or special assessments could lead to additional payments.

    Routine Maintenance and Seasonal Upkeep

    Homeownership also means taking responsibility for ongoing maintenance. Depending on the property, this can include lawn care, gutter cleaning, snow removal, pest prevention, filter replacement, and periodic servicing of household systems.

    These tasks may appear relatively inexpensive individually, but the total can become significant over a year. Setting aside money every month for routine upkeep and unexpected repairs is generally more practical than waiting until something breaks.

    The Canada Mortgage and Housing Corporation’s home purchase cost worksheet can help buyers organize upfront expenses and additional ownership costs in one place.

    4. Can You Actually Afford a Mortgage?

    Mortgage approval and financial affordability are not the same thing. A lender may determine that you qualify for a particular mortgage, but the resulting payments could still leave too little room in your budget for other priorities.

    Start by estimating your expected monthly mortgage payment, then add property taxes, home insurance, utilities, condo or strata fees, and a realistic amount for maintenance. You should also account for existing debt payments, transportation, groceries, savings, and other regular expenses.

    For example, suppose your expected mortgage payment is $5,000 per month. If you currently live with your parents and pay little toward housing, buying the property could increase your monthly housing costs by close to $5,000 before other ownership expenses are included.

    If you currently pay $2,000 in rent, the difference in mortgage payments alone would be $3,000 per month. Once property taxes, insurance, utilities, and maintenance are added, the actual increase in total housing costs could be greater.

    Use a mortgage affordability calculator to estimate what you may be able to borrow, but base your final decision on your complete household budget rather than the maximum amount a lender is prepared to offer.

    5. How Gen Z Can Prepare Financially for a First Home

    One of the most practical ways to prepare for homeownership is to test your future budget before buying. Rather than waiting until the mortgage begins, calculate the difference between your current housing expenses and the total monthly cost you expect to face as a homeowner.

    Suppose the transition would increase your monthly spending by $3,000. Try setting aside that amount every month while continuing to live in your current home. This exercise can help you determine whether the financial commitment is manageable without relying on optimistic assumptions about future salary increases.

    If saving that amount is difficult, consider adjusting your target purchase price, extending your savings period, or reassessing your preferred location. The money you save during this trial period can also increase your eventual down payment or help establish an emergency fund.

    It is important to protect other financial goals as well. A mortgage should not automatically take priority over every other aspect of your financial life. You may still need to save for retirement, build an investment portfolio, pay down debt, purchase appropriate insurance, or prepare for future family expenses.

    Homeownership will often require trade-offs in discretionary spending, including dining out, travel, entertainment, and other lifestyle choices. Think carefully about which expenses you are willing to reduce and whether those changes are sustainable over the long term.

    First-time buyers should also investigate eligible savings programs and tax benefits. Depending on their circumstances, Canadians may be able to use the First Home Savings Account (FHSA) or the Home Buyers’ Plan (HBP) to help finance an eligible purchase. Each program has specific eligibility, contribution, withdrawal, and repayment rules, so consult official government guidance before relying on these options.

    Above all, avoid buying a home solely because it feels like the next expected step in adulthood. Owning property can be rewarding, but it is not the only measure of financial success. Renting may remain the more practical choice for people who need flexibility, have uncertain income, or would otherwise have to stretch their finances too far.

    6. Build a Realistic Plan Before Buying

    The true cost of homeownership includes much more than the purchase price and monthly mortgage payment. Down payment requirements, mortgage default insurance, land transfer taxes, legal fees, property insurance, maintenance, utilities, and unexpected repairs all affect the financial commitment.

    For Gen Z Canadians, the best preparation starts with understanding these costs before making an offer. Calculate the upfront amount needed to close the transaction, estimate the ongoing expenses of the property, and preserve enough savings to handle emergencies without relying on additional debt.

    A home should support your long-term financial security, not undermine it. Taking time to prepare, compare options, and establish a realistic budget can make the move into homeownership more sustainable.

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    Buying your first home is also a good time to review your insurance needs. The right home insurance coverage can help protect your property and belongings against covered risks, while the right policy should reflect your home’s characteristics, location, and personal circumstances.

    Before moving in, compare available coverage options and understand what each policy includes, its exclusions, and its deductibles.

    Ready to take the next step toward protecting your new home? Get a Quote and explore insurance options that suit your needs and budget.

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    Oct 17, 2026
    Why a Major Storm May Not Bring Relief to the Insurance Market

    A major hurricane or severe storm can cause billions of dollars in property damage, leading many people to assume that insurance companies will respond by raising premiums and tightening coverage. While natural disasters can certainly influence insurance pricing, the relationship between catastrophe losses and the insurance market is more complicated than it may appear. Even when a major storm strikes, the resulting damage does not necessarily create the market conditions that insurers need to justify significant price increases. The amount of capital available to insurance companies, competition among providers, reinsurance costs and the scale of insured losses all influence how the market responds. For homeowners and other policyholders, this means that a major weather event does not automatically translate into higher premiums across the board. Understanding the forces behind insurance pricing can help Canadians make more informed decisions about protecting their homes and financial security.

    Why a Major Storm May Not Be Enough to Change Insurance Prices

    Natural catastrophes are among the most significant risks faced by property insurers. Hurricanes, floods, wildfires and severe storms can generate substantial claims, putting pressure on insurers to maintain sufficient reserves and manage their exposure to future losses. However, the impact of a disaster depends on more than the severity of the weather event itself. Insurers also consider the total amount of insured damage, the geographical concentration of their policies, their existing financial resources and the protection they receive through reinsurance. Reinsurance allows insurance companies to transfer part of their risk to other insurers. This helps them manage unusually large claims and maintain their ability to pay policyholders following major disasters. The cost and availability of reinsurance can therefore influence the premiums insurers charge their customers. A storm that causes less insured damage than expected may have a limited effect on the broader market. Even when losses are substantial, an insurance industry with sufficient capital may be able to absorb them without immediately increasing prices across every product or region.

    How Insurance Capital Influences the Market

    The availability of capital is an important factor in determining whether insurance prices rise or fall. Insurance companies need sufficient financial resources to cover claims, meet regulatory requirements and support future underwriting activity. When substantial capital flows into the insurance sector, providers may have greater capacity to accept risk and compete for customers. Increased competition can put downward pressure on premiums, particularly when several insurers are willing to offer coverage for similar risks. This creates a potential challenge for insurers hoping to increase prices following a catastrophe. If the industry has ample capital and competing providers are actively seeking business, even a costly storm may not be enough to produce the widespread price increases some market participants anticipate. On the other hand, a sustained period of heavy catastrophe losses, rising reinsurance costs or declining investment returns could change the balance. If insurers face greater financial pressure while available capital becomes more limited, they may respond by raising premiums, reducing coverage or becoming more selective about the properties they insure. The outcome ultimately depends on how losses compare with the industry’s financial capacity and expectations for future risk.

    What This Means for Homeowners Insurance

    For homeowners, the relationship between catastrophe losses and insurance premiums is especially important. Severe weather can damage roofs, windows, siding, foundations and other parts of a property. Depending on the policy, homeowners may also face additional expenses related to temporary accommodation, repairs and replacing damaged belongings. However, insurance coverage varies considerably. A standard home insurance policy may cover certain types of sudden and accidental damage while excluding other risks or imposing specific limitations. Flooding, sewer backup and overland water damage, for example, may require particular coverage or endorsements, depending on the insurer and policy. Premiums can also vary based on a property’s location, age, construction, replacement cost, claims history and exposure to weather-related hazards. As a result, two homeowners in the same city may receive different quotes even when they face similar general market conditions. A period of increased competition among insurers may create opportunities for some homeowners to find more affordable coverage. Nevertheless, a lower premium does not necessarily mean a better policy. Differences in deductibles, coverage limits, exclusions and optional protections can significantly affect the value of a policy. Homeowners should therefore compare both price and coverage before switching providers.

    insurance market

    Why Insurance Costs Can Still Rise Even When the Market Has Ample Capital

    A well-capitalized insurance industry does not guarantee lower premiums for every policyholder. Several other factors can increase the cost of providing insurance.

    Rising repair and rebuilding costs: Higher prices for construction materials, labour and replacement property can increase the amount insurers must pay when claims occur.

    More frequent or severe weather losses: Even if the industry can absorb an individual storm, repeated catastrophes may increase the long-term cost of covering properties in high-risk locations.

    Reinsurance expenses: When reinsurers charge more to protect insurance companies against major losses, those additional costs can contribute to higher premiums for policyholders.

    Local risk exposure: Properties in areas vulnerable to flooding, wildfires, wind damage or other hazards may face higher premiums or more restrictive coverage, regardless of broader industry conditions.

    Individual property characteristics: The age and condition of a home, its replacement value, previous claims and available protective features can all influence the price and availability of coverage.

    These factors explain why insurance premiums do not always move in the same direction as the broader insurance market. Greater competition may help moderate prices, but it cannot eliminate the underlying cost of risk.

    How Canadians Can Prepare for Changes in Insurance Costs

    Although homeowners cannot control insurance market conditions or severe weather, they can take practical steps to manage their coverage and financial exposure. Start by reviewing your existing policy to confirm what is covered, which exclusions apply and whether your coverage limits reflect the current cost of rebuilding your home. Pay particular attention to water damage protections, deductibles and additional living expenses if your home becomes temporarily uninhabitable after an insured event. It is also worth comparing quotes periodically. Different insurers may assess the same property differently, so shopping around can help identify competitive options. When comparing policies, make sure the limits, deductibles and covered risks are reasonably similar. Homeowners can also ask their insurers whether eligible risk-reduction measures could qualify them for discounts. Depending on the property and provider, these measures may include improvements to the roof, plumbing, security systems or protection against certain types of water damage. Finally, consider whether your emergency savings could cover the deductible and other expenses that insurance may not reimburse. A policy provides important financial protection, but it does not necessarily cover every cost associated with a disaster.

    The Bottom Line

    A major storm can place significant pressure on insurance companies, but it does not automatically trigger widespread premium increases. The broader market response depends on insured losses, available capital, reinsurance costs, competition and expectations about future catastrophe risks. For Canadian homeowners, the most effective approach is to focus on the quality and suitability of their own coverage rather than assume that a single weather event will determine future premiums. Reviewing policy details, comparing quotes and understanding potential gaps in protection can help households make better decisions as insurance market conditions evolve.

    Get a Quote

    Your home is one of your most important financial assets, and the right insurance coverage can help protect it against unexpected losses. Whether you are purchasing a new policy or reviewing your existing protection, comparing available options can help you find coverage that fits your needs and budget.

    Get a quote from Bonjour Assurance to explore your home insurance options and find protection that works for you.

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    Jul 27, 2026
    How to Prepare for Your Camping Vacation: A Complete Guide

    Camping is one of Canada’s favorite ways to enjoy the outdoors. Whether you’re planning a weekend in a tent, travelling in an RV, or heading into the backcountry, a successful camping trip starts with good preparation. from choosing the right destination to making sure your insurance coverage is adequate, planning ahead helps you avoid unexpected expenses and enjoy your adventure with confidence.

    In this guide, we’ll cover everything you need to know before heading into nature.

    1. Why Planning Ahead Matters

    A camping vacation should be relaxing—not stressful. preparing in advance helps you:

    • Avoid unnecessary expenses
    • Stay safe during your trip
    • Pack everything you need
    • Protect your home while you’re away
    • Make the most of your vacation

    A little planning goes a long way toward creating lasting memories with family and friends.

    Set a Realistic Camping Budget

    Every successful trip starts with a budget. think about all the costs involved—not just campground fees.

    Common camping expenses include:

    • Fuel or transportation
    • Campground or park fees
    • Food and drinks
    • Camping equipment
    • Outdoor activities
    • Firewood
    • Clothing
    • Souvenirs
    • Emergency purchases

    A smart rule is to leave 10–15% of your budget for unexpected expenses such as equipment replacement, weather-related changes, or vehicle repairs.

    2. Choose the Right Camping Destination

    Canada offers everything from provincial parks to remote wilderness adventures. when selecting a campsite, consider:

    • Distance from home
    • Your travel budget
    • Available amenities
    • Pet-friendly options
    • Family activities
    • Washrooms and showers
    • Cell phone coverage
    • Online reviews

    If you’re camping during peak season, reserve your campsite well in advance.

    3. Review Your Insurance Coverage Before You Leave

    Many campers don’t realize that their existing insurance policies may already provide valuable protection.

    Auto Insurance

    If you’re travelling by car, truck, or certain types of RVs, your auto insurance may cover your vehicle while you’re on the road.

    Home Insurance

    Your home insurance may also protect personal belongings temporarily taken away from your residence, including camping equipment such as:

    • Tents
    • Sleeping bags
    • Camping furniture
    • Portable electronics
    • Clothing

    Coverage limits and exclusions vary between policies, so it’s worth reviewing your insurance before your trip.

    Do You Need Travel Insurance?

    If you’re camping close to home, additional travel insurance may not be necessary. however, travel insurance becomes much more important if you:

    • Travel outside your province
    • Visit another country, including the United States
    • Plan an extended camping trip
    • Participate in higher-risk outdoor activities

    Medical emergencies abroad can be expensive, making travel insurance a worthwhile investment.

    Tip: If you’re travelling to the U.S., many insurance professionals recommend at least $2 million in emergency medical coverage.

    4. Prepare Your Vehicle

    Before a long drive, inspect your vehicle to reduce the chance of breakdowns. your checklist should include:

    • Tire pressure
    • Oil level
    • Coolant
    • Windshield washer fluid
    • Brakes
    • Lights
    • Battery condition

    Don’t forget your emergency kit, including:

    • Flashlight
    • Jumper cables
    • First-aid kit
    • Blankets
    • Water
    • Phone charger
    camping

    5. Pack Early

    Waiting until the night before usually means forgetting something important. create a packing checklist several days before departure.

    Essential camping gear

    • Tent
    • Sleeping bag
    • Sleeping pad
    • Camping stove
    • Cooking supplies
    • Water bottles
    • Food
    • Flashlight
    • Extra batteries
    • Multi-tool
    • Insect repellent
    • Sunscreen
    • Rain gear

    If you’re camping with children, remember helmets, outdoor games, medications, and comfort items.

    6. Bring Important Documents

    Keep both physical and digital copies of important documents. these include:

    • Driver’s licence
    • Health card
    • Passport (if required)
    • Vehicle registration
    • Insurance documents
    • Campground reservation confirmation

    Store copies on your phone in case originals are lost.

    7. Protect Your Home Before Leaving

    An empty home can become an easy target. before leaving:

    • Lock all windows and doors.
    • Set indoor lights on timers.
    • Hold your mail or ask a neighbour to collect it.
    • Turn off unnecessary appliances.
    • Adjust your thermostat if appropriate.
    • Let a trusted friend or neighbour know you’ll be away.

    These simple steps help reduce security risks while you’re enjoying your trip.

    Camping Safety Tips

    Nature is unpredictable. follow these safety practices:

    • Check the weather forecast.
    • Keep food stored securely.
    • Never leave a campfire unattended.
    • Follow local fire restrictions.
    • Stay hydrated.
    • Carry a first-aid kit.
    • Tell someone your travel plans if heading into remote areas.

    Frequently Asked Questions

    Is camping equipment covered by home insurance?

    In many cases, yes. Personal belongings temporarily away from your home may be covered, subject to your policy limits, deductible, and exclusions.

    Do I need travel insurance for camping?

    It depends on where you’re travelling. Camping close to home may not require additional coverage, but travelling outside your province or country often makes travel insurance a smart choice.

    Does auto insurance cover an RV?

    Some RVs may be covered under an auto insurance policy, while others require specialized RV insurance. Check with your insurance provider before your trip.

    How much emergency medical coverage should I have when travelling to the U.S.?

    Many insurance professionals recommend at least $2 million in emergency medical coverage due to the high cost of healthcare in the United States.

    Final Thoughts

    Camping is one of the best ways to experience Canada’s incredible outdoors, but preparation makes all the difference. Planning your budget, packing carefully, checking your insurance, and taking a few safety precautions can help ensure a smooth and enjoyable trip. before you head out, review your insurance coverage so you know you’re protected wherever your adventure takes you.

    Get a Quote

    Planning a camping trip? Make sure your home, auto, travel, or RV insurance provides the protection you need before you leave.

    Contact Bonjour Assurance today for a personalized insurance quote and travel with confidence.

    reference

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    Apr 30, 2026
    How to Protect Your Home from Natural Disasters: Practical Steps That Make a Difference

    Extreme weather events are no longer rare occurrences. From floods and severe storms to wildfires, natural disasters are increasing in both frequency and intensity. For homeowners, this means a higher risk of property damage, unexpected repair costs, and long-term financial stress.

    Preparing for these events is no longer something you can postpone. It’s a necessary step toward protecting not only your property but also your safety and peace of mind. While insurance coverage helps reduce the financial burden after a disaster, prevention is what truly minimizes damage in the first place.

    👉 To strengthen your protection, check out our Home Insurance Coverage and Health Insurance Plans.

    Understanding the Growing Risk of Natural Disasters

    Climate Change Is Reshaping Risks

    Climate change is one of the main drivers behind the rise in natural disasters. Weather patterns are shifting, and areas that were once considered low-risk are now experiencing extreme conditions. Heavy rainfall, for example, is overwhelming drainage systems and increasing the risk of flooding in residential areas.

    More Frequent and Severe Events

    Storms are becoming stronger, wildfire seasons are lasting longer, and extreme weather events are happening more often than ever before. This growing intensity leads to more significant damage, affecting homes, infrastructure, and vehicles.

    Financial Impact on Homeowners

    With increasing risks, insurance companies are adjusting their policies. This can mean higher premiums or stricter coverage requirements. Homeowners who take preventive measures are often better positioned to manage these changes and avoid costly claims.

    👉 Learn how to stay financially prepared with our Financial Insurance Solutions.

    The Most Common and Costly Disasters

    Flood Damage

    Flooding is one of the leading causes of property damage. Water can quickly seep into basements, walls, and foundations, leading to expensive repairs and potential health risks like mold.

    Wind and Storm Damage

    Strong winds can tear off roofs, break windows, and damage outdoor structures. Flying debris can further increase the risk of destruction.

    Ice, Snow, and Hail

    Winter storms and hail can damage roofs, vehicles, and exterior surfaces. Ice buildup can also create dangerous conditions for both homes and roads.

    Wildfires

    Wildfires are expanding into new areas, putting more homes at risk. Dry conditions and strong winds can cause fires to spread rapidly.

    Natural Disaster

    5 Practical Ways to Reduce Damage

    1. Maintain Your Drainage System

    Regularly cleaning your gutters and drains helps prevent water buildup. Blocked drainage systems can cause water to overflow and damage your roof, walls, and foundation.

    2. Strengthen Doors and Windows

    Your doors and windows are among the most vulnerable parts of your home. Make sure they are properly sealed and reinforced to withstand harsh weather conditions.

    3. Secure Outdoor Belongings

    Outdoor furniture, grills, and tools should be stored safely when bad weather is expected. Strong winds can turn these items into dangerous projectiles.

    4. Build a Reliable Emergency Kit

    An emergency kit should include essentials like water, non-perishable food, flashlights, batteries, and first aid supplies. Having these items ready can make a critical difference during an emergency.

    5. Create a Protective Space Around Your Home

    If you live in an area prone to wildfires, clear dry plants and debris around your property. This creates a buffer zone that can slow down or prevent the spread of fire.

    Smart Ways to Protect Your Car

    Choose Safe Parking

    Whenever possible, park your car in a garage or under a shelter. This protects it from hail, falling branches, and debris.

    Avoid Flood-Prone Areas

    Parking in low-lying areas increases the risk of flood damage. Even a small amount of water can damage your vehicle’s engine and electrical systems.

    Stay Updated on Weather Conditions

    Before heading out, check the weather forecast. Planning ahead can help you avoid dangerous situations and reduce risks on the road.

    Why Prevention and Insurance Go Hand in Hand

    Preventive measures can significantly reduce the risk of damage, but they cannot eliminate it entirely. This is why having the right insurance coverage is essential. A comprehensive policy can help cover repair costs, temporary housing, and other unexpected expenses.

    👉 Explore your options:

    Final Thoughts

    Natural disasters are unpredictable, but your level of preparedness doesn’t have to be. By taking simple, proactive steps, you can reduce potential damage and protect what matters most.

    Preparation is about control—knowing that you’ve done everything possible to safeguard your home and your family.

    🔥 Get the Protection You Need Today

    Don’t leave your safety and finances to chance.

    👉 Get a Quote Now and secure the right insurance coverage for your future.

    Reference

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    Dec 6, 2025
    Holiday Season Safety Tips for a Safe and Peaceful Celebration

    The holiday season brings joy, warmth, and the perfect opportunity to gather with loved ones. Yet, it also introduces seasonal risks that can compromise your home’s safety if left unaddressed. From theft prevention to fire safety and winter travel considerations, taking a few precautions can significantly reduce potential hazards. This guide expands on key recommendations to help you protect your home and enjoy a truly stress-free festive season.

    For year-round protection and coverage options, visit our Home Insurance page at
    https://bonjourassurance.com/home-insurance/

    1. Prevent Theft Through Smart, Subtle Choices

    Unfortunately, the holiday season is a prime time for theft. Shopping bags in cars, delivered packages, and social media posts about travel plans can all signal opportunity to thieves.

    When shopping in person, store purchased items in the trunk, ensuring they are not visible through the windows. Thieves often scan parking lots for easily accessible items, especially during December.

    If you shop online, remember that packages left unattended on porches can be stolen within seconds. Arrange delivery times, use pickup points, or request in-building drop-offs when possible.

    If you are travelling, avoid posting your plans publicly until you return home. Announcing your absence unintentionally signals that your home is unoccupied.

    To strengthen your protection year-round, explore additional theft-prevention guidance through our Home Insurance resources:
    https://bonjourassurance.com/home-insurance/

    2. Keep Your Christmas Tree Safe and Reduce Fire Risks

    Holiday décor creates a warm, festive atmosphere, but it can also introduce fire hazards. Artificial trees are generally safer, but natural trees can be used safely with proper care.

    Position your tree away from fireplaces, candles, radiators, and high-traffic passages. Natural trees dry out quickly, so ensure the stand has a water reservoir and refill it daily. Dry branches ignite easily, especially when using older non-LED light sets.

    Never burn Christmas tree branches in your fireplace. Needles burn intensely and can cause sudden flare-ups. Local municipalities usually have clear rules for tree disposal—follow these guidelines for safe removal.

    For more seasonal home-safety advice, visit:
    https://bonjourassurance.com/home-insurance/

    Holiday

    3. Use Holiday Lights Safely—Indoors and Outdoors

    Holiday lights create a cozy and festive environment, but electrical issues are a major cause of seasonal fires. A few simple steps dramatically reduce risks.

    Always choose lights certified by safety organizations such as CSA

    Ensure that each string of lights and extension cord is designed for its intended setting—indoor lights should never be used outdoors. Before installation, inspect wires carefully and replace any with damaged insulation.

    Turn lights off before leaving home or going to bed. Avoid placing cords under carpets where they can overheat or be damaged. Also, prevent overloading power outlets or extension strips.

    For long-term home protection, explore our insurance guidance at:
    https://bonjourassurance.com/home-insurance/

    4. Plan Ahead Before Winter Driving

    If you’re heading to gatherings, dinners, or trips during the holidays, winter driving safety is critical. Weather conditions can change quickly, and preparing in advance helps prevent accidents.

    Check weather updates before leaving and adapt your driving to conditions such as snow, ice, or reduced visibility. Always clear all snow from your vehicle—including roof, lights, and mirrors—to ensure your safety and the safety of other drivers.

    If leaving home for several days, take steps to make your home appear occupied:
    • Leave a light on a timer
    • Have someone shovel your walkway
    • Ask a neighbour to collect your mail
    • Shut off your water supply to avoid frozen or burst pipes

    Learn more about protecting your home from winter risks here:
    https://bonjourassurance.com/home-insurance/

    5. Host Guests Safely and Minimize Household Risks

    Gathering with family and friends is one of the best parts of the season, but a busy home increases the risk of slips and fire hazards.

    Before guests arrive, clear snow and ice from sidewalks, steps, and all exterior entrances. This prevents falls and ensures safe access.

    In the kitchen, distractions are common. Follow these safety steps:
    • Never leave cooking unattended
    • Use timers to keep track of meals
    • Choose electric deep fryers over stovetop oil pots
    • Handle fondue burners carefully and avoid refilling when hot

    Also, ensure that guests who have consumed alcohol do not drive. Offer rides, call a taxi, or encourage overnight stays.

    For full home-protection insights, visit:
    https://bonjourassurance.com/home-insurance/

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    Nov 1, 2025
    Home Insurance Tips for Water Heater Safety

    When it comes to protecting your home, few issues cause as much unexpected damage as a leaking water heater. A burst or faulty tank can lead to flooding, expensive repairs, and potential insurance claims. Here are four essential tips to help you maintain your water heater and keep your home insurance coverage strong.

    1. Know the Age and Condition of Your Water Heater

    Most water heaters have a lifespan of about 10 to 12 years. If yours is approaching that age, it’s important to start monitoring it closely for any signs of corrosion, rust, or leaks.
    A good habit is to note the installation date — you’ll usually find it on the manufacturer’s label. If you’ve recently purchased a new home, ask your inspector about the tank’s age and condition.
    👉 Replacing an older unit before it fails can save you thousands in potential water damage and claims.

    2. Drain and Maintain the Tank Regularly

    Over time, minerals and sediment build up inside your tank, reducing efficiency and increasing the risk of internal corrosion. Experts recommend draining your water heater once or twice a year.
    This simple task helps extend the unit’s lifespan and maintain optimal performance. If you’re not comfortable doing it yourself, hire a licensed plumber to handle the maintenance safely.

    water heater

    3. Install a Leak Detector and Safety Valve

    Smart water leak detectors are small devices that alert you instantly when a leak is detected. Some even connect to your smartphone, allowing you to act before damage spreads.
    Also, make sure your pressure relief valve is functioning correctly. This valve prevents dangerous pressure buildup and is an essential safety feature on all modern water heaters.

    4. Review Your Home Insurance Policy

    Not all home insurance policies cover the same level of water damage. Some may exclude damage caused by gradual leaks or poor maintenance.
    It’s a good idea to review your policy and confirm what’s covered. If you’re unsure, contact your insurer or speak with one of our advisors at Bonjour Assurance to make sure your plan provides full protection.
    For a detailed overview of coverage options and how they relate to household risks, check out our Ultimate Insurance Guide.

    Final Thoughts

    Your water heater might not be something you think about often — until it causes a problem. Regular inspections, timely replacements, and the right insurance coverage can make all the difference in protecting your home.
    For more information and personalized advice, visit Bonjour Assurance or read our Ultimate Insurance Guide.

    Original reference: iA Financial Group – 4 Key Tips: Water Heaters and Home Insurance

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    Oct 25, 2025
    Stop Basement Floods with a Backwater Valve

    Flooding is one of the most common and expensive problems homeowners face—especially when it comes from the sewer system backing up into your basement. The good news? A simple device called a backwater valve can protect your home from that kind of disaster.

    What Is a Backwater Valve

    A backwater valve is a one-way gate installed on your home’s main sewer line. It allows wastewater to flow out of your home but automatically closes if water starts to flow backward from the municipal sewer system.

    When installed properly, it acts as a strong defense barrier that prevents sewage from entering your basement during heavy rain or municipal drainage overloads.

    👉 For detailed home insurance protection options, visit Bonjour Assurance’s Home Insurance page.

    How Does It Work

    Here’s the simple mechanism behind it:
    When wastewater flows normally, the valve’s flap stays open. If the city’s sewer becomes overwhelmed and starts pushing water backward, the flap floats up and seals shut, blocking the backflow. Once the pressure subsides, it reopens automatically.

    This process happens within seconds—protecting your basement before any water has a chance to enter.

    Why Every Home Should Have One

    Installing a backwater valve isn’t just for flood-prone areas. Even if your neighborhood rarely experiences flooding, extreme weather events can overwhelm sewers unexpectedly.

    Without a valve, your basement is vulnerable to contaminated water, expensive repairs, and potential health risks.

    💡 Insurance tip: Many insurance providers (including us at Bonjour Assurance) offer discounts or coverage benefits for homes equipped with a certified backwater valve. It shows you’ve taken preventive measures to protect your property.

    How to Maintain Your Backwater Valve

    Like any home system, your valve needs regular maintenance to stay reliable:

    • Inspect it at least once a year.
    • Remove debris or buildup that might block the flap.
    • Test its function after heavy rainfall.
    • If unsure, hire a licensed plumber for inspection or cleaning.

    Some municipalities even offer rebates or installation programs for backwater valves — check with your local city office for available assistance.

    Final Thoughts

    A backwater valve might not seem like a big deal, but when a storm hits, it can save you thousands of dollars in cleanup costs and prevent days (or weeks) of disruption.

    Whether you’re buying a new home or improving your current one, adding this small but powerful device is one of the smartest investments you can make.

    🔗 Learn more about protecting your property with the right coverage at Bonjour Assurance.
    📚 Original reference: iA Financial Group – Backwater Valve Advice

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    Oct 12, 2025
    Home Insurance and Subletting – Everything You Need to Know Before Renting Out Your Place

    Thinking of subletting your home while you’re away? Learn how subletting affects your home insurance, what risks are involved, and how to stay protected.

    What Does Subletting Actually Mean

    Subletting means renting out your home to another person (a subtenant) while you still hold the main lease. Unlike a lease transfer, you don’t give up your rights to the property, and you remain responsible for rent payments and potential damages.

    Even if you’re not living in the unit, you’re still legally the tenant. That means:

    • You must ensure rent is paid on time.
    • You are responsible for any damages caused by the subtenant.
    • Your landlord must approve the sublet agreement.

    There are generally two types of sublets — long-term and short-term, and each affects your home insurance differently.

    Long-Term Subletting and Your Home Insurance

    A long-term sublet means you plan to come back home later. While it can help you manage expenses while away, it also brings insurance considerations.

    👉 Important: Your current home insurance doesn’t automatically cover your subtenant.
    Home insurance policies apply only to the person named in the contract, not to everyone living there.

    Here’s what you should do:

    • Inform your insurer about the sublet.
    • The insurance provider may reassess the risk level.
    • The subtenant must have their own tenant insurance policy.

    In Quebec, you must also notify your landlord officially by submitting a sublease notice.

    Home insurance

    Short-Term Subletting (Airbnb, Vrbo, etc.)

    Renting out your home through platforms like Airbnb or Vrbo is also considered subletting — even if it’s just for a few days.

    Before listing your property:

    • Check local regulations — some cities restrict short-term rentals.
    • Know that most home insurance policies don’t cover rentals exceeding 30 days per year.
    • Continuous short-term rentals may be classified as a business activity, which standard insurance doesn’t cover.

    Your insurer may require you to:

    • Add a short-term rental endorsement to your policy.
    • Get additional coverage for guest-related damages or liability if someone is injured during their stay.

    Some platforms offer host protection, but it’s only a secondary coverage — not a substitute for your own home insurance.

    Legal Responsibilities and Tenant Protection

    The Tribunal administratif du logement closely monitors subletting and lease transfers.
    Contrary to common belief, tenants can’t simply break a lease by giving three months’ notice — rules differ based on local laws.

    Before subletting, consult your trusted insurance advisor to ensure you don’t end up dealing with an uninsured subtenant.

    Need Advice About Home Insurance

    At Bonjour Assurance, we help you make smart insurance choices.
    Whether you plan to sublet or need new home coverage, our advisors can guide you through the process and ensure you’re protected.

    👉 Get a Home Insurance Quote
    👉 Learn More About Home Insurance

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