Preface

In July of last year, Toronto was hit by a relentless downpour, with hours of torrential rain overwhelming the city’s drainage systems and turning streets into rivers. Within a matter of hours, underpasses were submerged, basements filled with water, and vehicles were left stranded in deep pools of floodwater. The sheer volumse of rainfall—measured in dozens of millimeters falling in mere minutes—was too much for aging infrastructure to handle, leaving entire neighborhoods grappling with one of the most devastating flash floods in recent memory. By the time the waters receded, the city had suffered over CA$940 million in insured losses, making it one of the costliest weather-related disasters in Canadian history.

For homeowners, overland flood insurance and sewer backup coverage were essential in covering damage to basements, personal belongings, and structural repairs. Businesses with commercial property insurance were able to recoup losses from damaged inventory, lost revenue due to closures, and cleanup costs. Meanwhile, auto insurance with comprehensive coverage helped vehicle owners repair or replace cars that were submerged or damaged by floodwaters.

Given the scale of the flooding, insurance companies played a vital role in the financial stability of affected communities, ensuring that individuals and businesses could rebuild without falling into debt. If Toronto had not been heavily insured, the economic impact would have been catastrophic, homeowners might have been forced to abandon their properties, businesses could have shuttered permanently, and the financial burden would have fallen largely on governments and taxpayers. With nearly a billion dollars in insured damages, insurance served as a critical safety net, helping the city recover and reinforcing the growing importance of climate risk coverage. As extreme weather events become more frequent and severe, insurance is no longer just a financial tool—it is on the front lines of climate change, adapting to new risks and helping communities stay resilient in an uncertain future.