What to know
- A new report highlights how homeowners in the Greater Toronto and Hamilton Area can use rebate programs to offset the cost of upgrades that help protect against flooding and other climate-related damage.
- Severe weather generated $8.6 billion in catastrophic insurance claims across Canada in 2024, increasing concerns about home resilience and insurance affordability.
- Toronto’s expanded Basement Flooding Protection Subsidy Program offers up to $6,650 for eligible upgrades, including sump pumps, backwater valves and sewer connection improvements.
- Experts recommend homeowners check rebate eligibility requirements and speak with their insurer before making upgrades, as some improvements may affect insurance costs.
- Energy-efficiency upgrades such as heat pumps, solar panels and improved windows may not directly lower premiums but can help reduce risks associated with floods and wildfires.
As extreme weather events become more common, homeowners are faced with increasing insurance costs, but one report reveals that taking advantage of rebate programs can help them reduce the chance of having to deal with a costly claim.
As the effects of climate change become more evident, consumers and insurers have increasingly been feeling the impact of more common severe weather events. A report from the Government of Canada revealed that Catastrophic (CAT) claims caused by severe weather increased substantially in 2024, leading to $8.6 billion in costs across the country.
According to Rates.ca’s latest Home Insuramap report, risks are even higher in older urban areas, such as the Greater Toronto and Hamilton Area (GTHA) driven by aging sewer infrastructure and basement units that are not prepared for increased risks.
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However, especially in these areas, Rates.ca insurance expert Daniel Ivans said homeowners have an opportunity to take advantage of rebate programs that allow them to make necessary upgrades to reduce costly insurance claims risks without breaking the bank.
How can rebates be helpful?
Some federal and local government rebate programs provide incentives for homeowners to make necessary upgrades that protect their homes from climate disasters, including flood, water damage, and other weather-related risks. Some of these measures include upgrading drainage systems, backwater valves, heat pumps, or sump pumps.
For some insurance providers, making these repairs makes the properties more attractive, which could reduce the costs of their insurance premiums. However, whether it makes their insurance less costly depends on the provider, so the report recommends homeowners speak with their insurer or broker before making the upgrades.
In addition, homeowners are also warned to research their local rebate programs before getting started, and double check eligibility, funding caps, and approved upgrades.
On top of reducing costs, upgrades can also help reduce the risk of damage related to natural disasters.
What rebates are available in Toronto?
As of last month, the City of Toronto has expanded its Basement Flooding Protection Subsidy Program which allows single-family, duplex, triplex, or fourplex residential homeowners to apply for a subsidy to help protect their homes from flooding.
This rebate offers up to $6,650 in subsidies per property, and includes:
- Installation of backwater valves and alarms
- Home pumping assessment
- Installation of sump pumps, alarms and battery backup power
- Severance and capping of storm sewers or external weeping tile connection.
Within this program, the city also offers subsidies applying to work before Nov. 12, 2025. This includes up to 80 per cent of the work costs or a maximum of $1,250, and applies to:
- Installation or replacement of backwater valves
- Installation of alarms for backwater valves.
Similarly, homeowners can also claim up to 80 per cent of the costs or up to $1,750 for:
- Installation or replacement of a sump pump
- Installation of alarms for sump pumps
For more information on these subsidies or how to apply, homeowners should visit the city’s website.
In addition, the city also offers thousands of dollars in rebates for homeowners to improve their home’s energy efficiency, including:
- Appliances upgrades
- Heat pumps and water heaters
- Rooftop solar panels and battery storage
- Doors and windows.
More information on these are also available on the city website.
Why is energy efficiency important?
As mentioned in the Rates.ca report, eco-friendly upgrades don’t necessarily lead to lower insurance costs.
However, according to The Insurance Institute of Canada’s 2026 Home Insurance Affordability report, homes with these upgrades are typically linked to less flood and wildfire-related claims.
