As an island, P.E.I’s coastline is impacted by wind, waves, and snow. Climate change is also causing these weather events to become stronger and more frequent.
If you’re shopping around for a house in P.E.I., make sure you consider its location and how prone it is to such storms. Your policy will only help to pay for some of the costs in the event of a loss.
This includes the replacement of a house’s structure and its contents, and additional living expenses. However, you won’t receive market value, i.e., the total value of the land and house.
Coastal erosion, flooding and rising sea-levels
The sea level surrounding P.E.I. continues to rise due to climate change and it's putting coastal properties at a higher risk of flooding.
Strong winds can trigger storm surges, which can result in overland flooding. And for low-lying coastal properties, which already have had a front-row seat to coastal erosion, flooding is expected to become even more severe.
Since there are currently no insurance products which specifically address coastal erosion in Canada, you will want to examine the risks associated with your property and ways to protect from damage.
Regions at highest risk: Residences that are located right on the coast.
Snow and ice
Winters in P.E.I. bring snow and ice, with temperatures dipping well below the freezing point. If a passerby slips on your yet-to-be-shovelled property, you are at fault for any damage, but if you have insurance, you'll be covered for any liability. Snow and ice can also cause flooding, frozen pipes, and other forms of damage to your property. Be sure to check that your house is up to standard and that your policy covers your specific needs.
Regions at highest risk: The entire island.