« Back to Summer 2025 Newsletter
Recent global trade shifts and tariffs on imported materials may have an impact on the home and auto insurance costs in Canada. Higher prices for building supplies and auto parts will lead to increased claims costs which in turn will increase premiums. Increases in rebuilding and repair costs, could leave some underinsured.
Property Insurance: Tariffs & Rebuild Costs
Tariffs on softwood lumber, steel and aluminum may increase the cost of rebuilding/repairing homes after fires, floods, or storms.
What Tariffs can mean for Property Owners:
- If you don’t have “Guaranteed Replacement Cost” or “Guaranteed Building Replacement Cost” on your policy, you should check the limits on your policy and determine if they are adequate.
- If rebuild costs exceed your policy limits, you could be left with out-of-pocket expenses to complete repairs or rebuild your property.
- If you are a tenant and only insure your contents, you should check your content limits to ensure adequate coverage is available should you suffer a loss to your belongings.
Auto Insurance: Tariffs & Repair Costs
Modern cars rely heavily on imported parts — bumpers, sensors, mirrors and electronics — many of which may be affected by tariffs.
What Tariffs can mean for Car Insurance:
- Increased repairs costs, especially for newer vehicles with advanced technology
- Delays in repairs due to parts delays, which adds pressure on rental car limits
- Older vehicles may be more likely to be written off instead of repaired
- The cost of new vehicles may increase, making it crucial for owners of new vehicles to have the Limited Waiver of Depreciation coverage. This removes depreciation from a total loss settlement and covers the cost of OEM parts for repairs.
What You Can Do:
- Review your policies annually to ensure limits reflect current costs
- Notify your insurer anytime you make renovations to your home
- Check your policy limits for ATV’s, snowmobiles, trailers and watercraft and increase if needed.
- Check prices for new versions of the same make and model to help determine if the limit you have is adequate. Ensure you include taxes in this limit.
0 Comments