Climate Change Risks and Property Ownership
Disclosure: Climate Change Risks and Property Ownership
When purchasing a property, it's essential to consider all factors that may impact your investment, including potential risks related to climate change. This document is intended to help you understand how climate-related factors, such as wildfires and flooding, could affect your property now and in the future. Because our practice serves clients across both Ontario and British Columbia, we've included climate trends for the Ottawa area and for Kelowna and the Okanagan, so you can see what's most relevant to where you're buying or refinancing.
Understanding the Risks
- Insurance Challenges: Properties in areas prone to wildfires, flooding, or other extreme weather events may face higher insurance premiums or, in some cases, difficulty obtaining insurance coverage altogether. Without proper insurance, your financial protection is at risk.
- Property Value and Resale Concerns: As climate risks increase, properties in affected areas may become more challenging to sell. Future buyers may be deterred by rising insurance costs or the inability to secure coverage.
- Personal Safety and Maintenance Costs: Living in areas impacted by climate events could mean additional stress, expenses for damage repairs, or costs for preventive measures to protect your property.
Climate Trends for the Ottawa Area
Understanding local climate trends can help you make informed decisions:
- Temperature: Ottawa is experiencing warmer temperatures across all seasons. Days above 30°C have historically averaged about 14 per year, and that number is projected to more than double by midcentury.
- Precipitation: Winters and springs are expected to bring more rain, even as the overall yearly total is projected to decline slightly, which raises the risk of flooding during those wetter months.
- Flooding: The Ottawa River has flooded significantly in recent years, including in 2017, 2019, and 2024, and insurers have been reassessing flood coverage for properties in low-lying or riverside areas as a
result. - Extreme Events: Ottawa has also experienced major storms in recent years, including tornadoes and a severe 2022 windstorm, and forecasters expect flash flooding and intense storms to become more frequent going forward.
Climate Trends for Kelowna and the Okanagan
Understanding local climate trends can help you make informed decisions:
- Temperature: The Okanagan has warmed by roughly 1 to 1.3°C over the past 30 years, with the greatest increases in summer. Days above 30°C now happen more than twice as often as they used to, and days above 35°C have tripled in ome years.
- Drought and Wildfire Risk: Longer, drier summers are straining water supplies for homes, farms, and firefighting. Kelowna was recently ranked as Canada's highest wildfire-risk city, due to a mix of development near forested hillsides, heavy fuel buildup, and a history of major regional fires, including the 2023 McDougall Creek fire.
- Precipitation and Flooding: While summers are getting drier, winter, spring, and fall precipitation have been increasing in parts of the valley, and local risk assessments point to flooding around Okanagan Lake and creeks such as Mission Creek as a growing concern for homes and infrastructure.
- Outlook: City of Kelowna planning projections suggest significantly more residents could be exposed to extreme heat and higher wildfire risk in the decades ahead if current trends continue.
What This Means for You
Before proceeding with your purchase, we encourage you to:
- Research the area thoroughly: Understand the history of climate-related events and any local mitigation plans in place.
- Consult with your insurance provider: Confirm that the property can be insured and ask for an estimate of premiums.
- Plan for the future: Consider how these risks may affect your ability to maintain or sell the property down the road.
This disclosure is not meant to discourage you from purchasing but rather to ensure you have all the information needed to make a well-informed decision. As your mortgage broker, I'm here to guide you through this process and help you assess the potential risks and benefits
Chat with Jacquie
Phone: 250-575-8535
Don't Miss Your Mortgage Renewal
Fill out my web form and I will personally email you to remind you of your mortgage renewal.
Mortgage News:
Stepping Back Into Community
Before You Move, Make Sure You’re Solving the Right Problem
