Aug 4, 2025
Tessa Santana and her husband, struggling under tight finances, made a difficult choice last spring. They cancelled their home insurance to stretch their budget. A year later, a wildfire devastated their home, forcing them into a trailer parked in Rosthern Regional Park, Sask.
Santana spoke candidly about the heartbreak of losing pets and decades of memories. “We’re going to have to rebuild our life,” she told CTV News.
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“It’s not that I never had house insurance. Last year was tough financially on us.” The family is now living in a trailer while debating next steps and what, if anything, they could have done differently.
A costly gamble
Tessa Santana and her husband didn’t lose their home because they made a reckless decision. They lost it because they made a desperate one. With bills piling up and inflation squeezing their budget, they chose to cancel their home insurance, assuming the worst wouldn’t happen.
But it did.
And now, without coverage, the loss is total. No help rebuilding. No payout for their belongings. No compensation for the life they built. Just a trailer in a regional park and a long, uncertain road ahead.
It’s a scenario more Canadians are drifting toward, sometimes knowingly, sometimes not. And it’s part of what experts call the insurance gap: for every insured dollar lost to disaster in Canada, up to three or four dollars go uninsured. In 2024 alone, insured losses reached $8.5 billion, but uninsured damages could top $25–34 billion.
For those who opt out of coverage, the risk means the difference between rebuilding and starting over from nothing.
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Climate change is reshaping the insurance landscape
Across Canada, home insurance premiums are climbing at a pace that’s leaving many homeowners stunned, and in some cases, uninsured. One major reason: Extreme weather events, including wildfires, floods and windstorms, are becoming more frequent and more destructive. These events are outpacing what insurers had previously modeled as “once-in-a-century” disasters.
In 2024, insured damage surpassed $8.5 billion nationally — nearly triple the losses in 2023 — with a growing share linked to climate-exacerbated risks. According to the Insurance Bureau of Canada (IBC), that figure is part of a broader trend of billion-dollar disaster years, now happening annually instead of once a decade.
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In response, insurers are adjusting premiums to reflect the higher cost of claims and rebuilding. Homeowners in B.C., Alberta and Ontario have reported premium increases of 30 to 100%, depending on location and risk profile. Even in lower-risk zones like downtown Toronto, some residents have seen their premiums nearly double since 2022, often without any claims history.
“Insurers are recalibrating,” Aaron Sutherland, vice-president of IBC for the western region, told CTV News. “More extreme weather means greater losses, which has to be reflected in the cost of coverage.” He added that the situation is especially dire in high-risk areas, where some homeowners may be unable to find coverage at all or face five-figure annual premiums.
This has led to growing concerns over insurance affordability and availability, particularly in rural and fire-prone communities. While government disaster aid can help with emergency relief, it typically does not cover full rebuilding costs, making private insurance coverage critical.
5 smart moves to protect your home before the next crisis
If you’re worried about rising premiums or feel tempted to scale back coverage, experts warn: don’t leave yourself exposed. Here are five steps every homeowner should take now to stay protected, and reduce costs where possible.
1. Don’t cancel core coverage
Even in tight financial times, keep essential protection like fire, theft and liability insurance in place. Going without could lead to devastating losses that far outweigh any short-term savings.
2. Compare quotes annually
Insurance rates can vary significantly between companies, sometimes even year to year with the same provider. Shopping around and working with a broker can help you find better value and avoid sudden spikes.
3. Make your home more disaster-resistant
Home hardening — like trimming vegetation, installing sprinkler systems or switching to fire-resistant siding — can lower your risk and reduce your premiums. Some insurers may offer discounts for proven fire-smart upgrades.
4. Know your policy inside and out
Ensure you understand whether your home is insured for full replacement cost or actual cash value. The difference could mean tens of thousands of dollars in uncovered losses after a disaster.
5. Create a detailed home inventory
Document your belongings with photos, serial numbers and receipts. A complete inventory can speed up claims processing and ensure you’re reimbursed fairly after a loss.
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Don't get burned: insurance is critical
Tessa Santana’s experience shows just how devastating the consequences can be when insurance is out of reach. With disasters becoming more intense and unpredictable, going without coverage leaves families exposed to financial and emotional ruin.
When the wildfire hit, there was no backup plan, no payout, no rebuilding support, amd no way to recover what was lost. Now, her family is living in a borrowed trailer, starting over from scratch after a decision made out of financial pressure.
As more Canadians weigh tough choices about rising premiums and affordability, her story is a reminder of what’s at stake, and why protecting your home, no matter how stretched your budget feels, can make all the difference when the unthinkable happens.
Sources
1. CTV News: ‘We’re going to have to rebuild our life’: Family’s home burns after cancelling home insurance (July 20, 2025)
2. Insurance Bureau of Canada: 2024 shatters record for costliest year for severe weather-related losses in Canadian history at $8.5 billion (January 13, 2025)
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Leslie Kennedy served as an editor at Thomson Reuters and for Star Media Group, followed by a number of years as a writer and editor and content manager in marketing communications, before returning to her editorial roots. She is a graduate of Humber College’s post-graduate journalism program and has been a professional writer and editor ever since.
