Climate Change and Your Property Insurance: Are You Prepared?

This post is written by Trusted Partner, Park Insurance. To become a contributing editor, please contact our Real Estate Investor Solutions Specialist, David Maxwell at

In recent years, the effects of climate change have become increasingly evident, leaving many property owners concerned about the potential impacts on their insurance coverage. As a Real Estate Investor, it’s crucial to stay proactive and consider how climate change could affect your insurance in the future. Let’s explore the potential implications of climate change on your property insurance and provide practical steps you can take to prepare for these changes.

The Growing Risks of Extreme Weather:

With temperatures on the rise and weather patterns becoming more unpredictable, the frequency and severity of weather-related events have escalated. Forest fires, hailstorms, and mudslides are becoming more common in certain areas, posing a greater risk to properties. As a property owner, it’s essential to recognize that these evolving weather patterns could increase the likelihood of property damage and potentially lead to higher insurance premiums.

Gradual Changes in Property Value:

Climate change doesn’t just bring sudden extreme events; it can also result in gradual shifts that affect your property’s value. For instance, if your property is located near the coast, rising sea levels could gradually diminish its value due to the increased risk of flooding. Consequently, your insurance coverage and premiums may be impacted over time. Understanding these long-term effects is crucial in ensuring your insurance adequately addresses the changing risks.

Adapting Coverage to New Risks:

As climate change unfolds, it introduces new risks that may not be covered by traditional insurance policies. Insurers may need to adapt their policies to account for emerging risks associated with climate change. It’s important to review your policy and ensure you understand what is covered and what is not. If your property is in an area vulnerable to weather-related damage, you may need to consider additional coverage or higher deductibles to protect yourself.

Mitigating Risk:

Taking proactive steps to mitigate the risks associated with climate change is essential. Invest in measures that reduce the potential damage from weather-related events. For example, if you live in an area prone to hail, consider installing a hail-resistant roof. Resources like can provide valuable guidance on protecting your property from wildfires.

Preparing for the Future:

Climate change is a complex and multi-faceted issue that could have significant impacts on your home insurance. By understanding the risks and taking steps to prepare for them, you can help protect yourself and your home from the potential consequences of a changing climate.

Seek Expert Advice:

It’s always a wise decision to consult with insurance brokers who can provide expert advice on your home insurance policy. They can review your current policy and ensure that you have the right coverage in place to address the evolving risks posed by climate change. Remember, being proactive and well-informed is key to securing your property against future uncertainties.
As climate change continues to unfold, it’s crucial for Real Estate Investors like you to assess the potential impacts on your property insurance. By understanding the growing risks of extreme weather, adapting coverage to new risks, and taking proactive measures to mitigate these risks, you can safeguard your property and investments. Remember, staying ahead of the curve and ensuring your insurance coverage aligns with the changing realities of a world affected by climate change is not just a smart move—it’s a way to protect what matters most to you. So, grab your insurance cape, put on your thinking cap, and get ready to weather the storm (pun intended). Take the necessary steps, seek expert advice, and prepare yourself for the future. Your property and peace of mind deserve nothing less. After all, with a little humor and a lot of preparation, you’ll be the superhero of your real estate investments in the face of climate change!

Chris Westrop is the Vice President of Commercial Lines at Park Insurance. He has 30 years of experience in the commercial insurance business and is a Chartered Insurance Professional with the Insurance Institute of Canada. He is also a REIN member and a regular attendee at many of our programs. Learn more about Chris and the experienced team of Commercial Insurance advisors at Park Insurance. Chris may be reached at (604) 659-3133 or

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