Increasingly potent and frequent wildfires in Canada have contributed to skyrocketing home insurance premiums in areas of high risk, posing a challenge to housing affordability, an analysis by Wahi and MyChoice found.

Home insurance rates across Canada in January 2024 rose 7.66 per cent year-over-year, fuelled by extreme weather damages, elevated claims costs and rising repair and replacement prices, according to data by insurance comparison site MyChoice Financial.