The growing importance of Insurance - availability and affordability - in the real estate transaction bears a part 2 of my previous BLOG article.

Why insurance is becoming a bigger real estate issue

Across Canada and the United States, home insurance is being pushed into the spotlight by a combination of rising repair costs, higher replacement values, climate-related events, wildfire exposure, flooding, severe storms, and increased insurer losses.

Statistics Canada reported that from December 2019 to December 2025, Canadian homeowners’ home and mortgage insurance premiums rose 45%, more than double the increase in the all-items Consumer Price Index over the same period. The agency also noted that extreme weather has become one of the major forces reshaping Canada’s home insurance market. (Statistics Canada)

In the United States, Realtor.com’s 2026 housing and climate risk report estimated that nearly one quarter of U.S. homes are exposed to severe or extreme climate risk from wind, flood, or wildfire. The report also connects climate risk to higher insurance premiums, higher HOA fees, and mortgage stress. (Realtor)

That matters because insurance is not separate from affordability. It is part of the real cost of owning a home.

The affordability conversation is incomplete without insurance

Most real estate conversations focus on purchase price and mortgage payment. That makes sense. Those are the biggest and most visible numbers.

But homeowners do not live with the purchase price.

They live with the monthly cost.

That monthly cost includes mortgage payments, property taxes, utilities, maintenance, strata fees where applicable, and insurance.

When insurance premiums rise, deductibles increase, or coverage becomes more limited, the true cost of ownership changes. For some buyers, that may affect what they can afford. For others, it may influence which properties, neighbourhoods, or building types they feel comfortable purchasing.

This is especially important in markets like the Okanagan, where wildfire exposure, hillside development, lake proximity, aging homes, strata buildings, and seasonal climate events are all part of the local real estate landscape.

Why buyers should ask earlier

For buyers, insurance should no longer be treated as a final checklist item.

It should be part of early due diligence.

Before removing conditions, buyers should understand whether the property can be insured, what the annual premium may be, what deductibles apply, whether any exclusions exist, and whether the insurer has concerns about age, condition, roof life, electrical systems, plumbing, wildfire exposure, or prior claims.

This is particularly important for older homes, rural properties, homes near forested areas, properties with Poly-B plumbing, homes with older roofs, and strata properties with large building deductibles.

For condo and townhome buyers, the questions go even deeper. It is not just about personal insurance. Buyers also need to understand the strata corporation’s building insurance, deductible levels, claims history, contingency reserve planning, and how rising premiums may affect future strata fees.

A property may look affordable on paper, but once insurance and strata costs are fully understood, the picture can change.

Why sellers should care too

Insuranceability is not just a buyer issue.

Sellers should also be paying attention.

A home that raises insurance concerns can create friction during a sale. Buyers may hesitate if they discover late in the process that coverage is expensive or conditional. Lenders may require confirmation of insurance before funding. A buyer who becomes uncomfortable with risk may try to renegotiate—or walk away entirely.

That means sellers should think proactively about the issues insurers and buyers may notice.

Is the roof near the end of its life? Are there older systems in the home? Is the electrical panel outdated? Are there signs of water ingress? Is the property in a higher-risk wildfire area? Has the home had prior claims? Are there maintenance items that should be addressed before listing?

Not every issue needs to be fully solved before going to market, but surprises rarely help a negotiation.

The better strategy is clarity.

A well-prepared home, supported by good documentation, recent maintenance records, and transparent disclosure, gives buyers more confidence. And in a cautious market, confidence matters.

The Okanagan lens

For the Okanagan, this topic is especially relevant.

Wildfire seasons, smoke events, hillside neighbourhoods, lake-adjacent areas, older housing stock, and strata communities all make insurance a practical part of the real estate conversation.

This does not mean buyers should be afraid.

It means they should be informed.

A thoughtful real estate decision is not just about what a home looks like today. It is about what it will cost to own, maintain, insure, protect, and eventually resell.

The bottom line

Insurance used to be one of the quietest parts of a real estate transaction.

Increasingly, it is becoming one of the most important.

For buyers, the key is to ask insurance questions early—not after emotions are high and timelines are tight.

For sellers, the key is to reduce uncertainty before listing by addressing obvious maintenance issues and preparing documentation that helps buyers feel comfortable.

In a changing real estate market, the best decisions are not made by looking at price alone.

They are made by understanding the full ownership picture.

And today, insuranceability is becoming a bigger part of that picture than ever before.