Will home insurance clients pay for climate upgrades?

Canadian homeowners are no strangers to bad weather and a recent survey finds 86% of them believe their homes face extreme weather risks.

But 59% of those respondents have not installed, and don’t intend to install, upgrades that could protect their homes from climate-driven impacts, according to a survey conducted by Leger for rate aggregator Rates.ca. The survey was conducted Mar. 6–9, 2026, and polled 1,073 homeowners across Canada.

Upgrades detailed in the survey include stronger shingles, sump pumps, and drainage improvements. 

“A lot of homeowners understand that severe weather is becoming more common, but they don’t always connect that risk to specific upgrades that can help protect their home,” says Daniel Ivans, a broker who provides commentary for Rates.ca. “That can leave people more exposed to preventable damage, especially when flooding, hail, or wind events hit with little warning.” 

Related: The connection between flood risk and housing affordability in Ontario

A recent Institute for Catastrophic Loss Reduction (ICLR) study notes upgrade items like backwater valves, sump pumps and hail-resistant shingling aren’t prohibitively expensive – costing  between $3,000 and $10,000 – and often come with municipal or other rebates that help lower costs for homeowners. 

Features improving a home’s climate-resilience can also increase its value, as ICLR’s research notes. Homes that highlight climate upgrades in real estate listings typically score higher prices when they sell in Toronto, Calgary and Edmonton. (Sales premiums can range from around 2.8% to 5.6%). Depending on the housing market and features offered by the home, that can translate to between $20,000 to $51,500 in added value. 

“Protective upgrades are easy to overlook when nothing has gone wrong yet,” says Ivans. “Features like backwater valves, sump pumps or stronger roofing materials can make a real difference when severe weather hits.” 

Related: 62% of Canadians aren’t worried about flood risk: Intact

Meanwhile, in addition to high levels of concern among Canadian homeowners (and their general reluctance to take action), the Rates.ca survey finds: 

• 56% of respondents say they’d pay extra for a home that includes upgrades like sump pumps with a battery backup, stronger roof shingles, or improved drainage 
• An additional 20% of surveyed homeowners say they’re not sure if they would pay more when buying a climate-upgraded home 
• 4% of respondents say they’d be willing to spend an additional $20,000 or more to secure climate-friendly upgrades at time of purchase.

Among those saying they would pay more, the thresholds for additional spending are significant. Twenty six percent say they’d pay as much as $5,000 more, a further 20% would pay between $5,000 and $10,000 more, and 6% would pay $10,000 extra, or more.

Phil Porado

Phil, an award-winning journalist with over 30 years of experience in financial topics, has been managing editor of Canadian Underwriter for more than three years.