Clients hit by this week's "100-year storm" across the GTA should brace for longer-than-usual claims timelines, according to Gallagher, which says the volume of damage reports is straining insurers, adjusters and restoration providers across the region.
The September 2 storm dropped 100 to 110 millimetres of rain on parts of Toronto in a single afternoon, with wind gusts reaching 110 kilometres an hour and hail reaching ping-pong ball size in some areas, Insurance Business previously reported. Power outages peaked at 65,000 Toronto Hydro customers, cars were stranded and submerged on a flooded Don Valley Parkway, and both Rogers Stadium and Michael Garron Hospital reported significant damage. Insurance Bureau of Canada responded by launching a helpline offering real-time support for affected residents.
"Yesterday's flooding, high winds, hail, and power outages have caused significant disruption for many residents, families and businesses," said Amanda Dean, IBC's vice-president for Ontario and Atlantic, encouraging anyone with damage to contact their insurer immediately. IBC's consumer guidance notes that sewer backup requires specific optional coverage, overland flood coverage is optional and often capped, and wind and hail damage is generally covered under standard home and auto comprehensive policies. Additional living expense coverage also applies for residents unable to return home during repairs.
Gallagher's claims advocacy and broker teams have received a considerable volume of new claims reports and inquiries since the storm hit, said April Pittendreigh, the firm's senior vice president of national claims. Personal lines clients are reporting basement flooding, hail damage and fallen trees on roofs and vehicles, while commercial clients have seen flooding and water damage affecting buildings, equipment and operations, some of which may develop into business interruption claims.
"Many of our personal lines and commercial clients remain without power, making cleanup and recovery efforts more challenging," Pittendreigh told Insurance Business. "Given the widespread nature of the event and the high volume of claims reported across affected areas, clients may experience longer-than-usual response and restoration timelines as insurers, adjusters and restoration providers work through demand."
Insurance Business also previously reported that Aviva Canada has already seen a wave of claims for water, wind and hail damage from the storm, spanning both property and auto. Convective storms have driven nearly 80% of Aviva's catastrophe claims so far this year, according to the insurer, which has recorded a 48% increase in average catastrophe water claim severity and a 214% increase in water-related catastrophe claims filed annually compared with 2020 to 2022. Aviva said wind and tornado damage tends to be more common in Ontario, while large hail is a bigger concern across the Prairie provinces, and pointed to high-intensity rainfall overwhelming stormwater infrastructure as a factor behind the urban flooding seen this week.
Crawford & Company told Insurance Business it expects a significant volume of claims across residential and commercial property, alongside a rise in auto claims tied to flooding, hail and weather-related collisions, with business interruption and supply chain losses likely among commercial policyholders, though those claims typically take longer to assess. Ratehub.ca separately noted that drivers whose vehicles were damaged while driving through floodwater, rather than while parked, may find their claim classified as a collision rather than comprehensive damage, depending on the insurer's interpretation of the circumstances.
The event adds to what has already been a record-pace year for severe weather in Canada. CatIQ had declared eleven severe convective storm catastrophes since June before this storm even occurred, following a summer that already produced a major Ontario/Quebec storm system revised to $439 million in insured losses and a historic wildfire season in northwestern Ontario, Insurance Business previously reported. IBC's own figures show insured losses from extreme weather have averaged more than $3.7 billion annually over the past decade, up from $1.4 billion the decade before, with 2024 standing as the costliest year on record at more than $9 billion.
That broader pattern isn't new to the province, Pittendreigh said, but it continues to shape pricing and coverage decisions insurers are already making around water risk. "Severe weather is not new to Ontario, we have seen similar storms every few years over the past decade," she said. Insurers regularly reassess their appetite for water-related coverage through actuarial analysis and underwriting reviews, an approach mirrored across the country wherever flooding losses are common, sometimes resulting in coverage limits, higher deductibles or added premiums for enhanced water damage protection.
"In Ontario's private insurance market, insurers must balance claims experience with clients' needs for protection against increasingly complex risks," Pittendreigh said. "The industry remains focused on helping clients understand their exposures and secure the coverage that best supports their homes, businesses and families."
