Negotiations between the federal government and the provinces are progressing well on the national low-cost flood insurance program, the Insurance Portal has learned. 

The program is designed to support homeowners living in high-risk flood zones who lack adequate protection in the event of a disaster. The Insurance Bureau of Canada (IBC) estimates that 1.5 million households across the country are “at high risk of flooding.” 

An announcement could be made in the coming months, according to a source familiar with the file who is not authorized to speak publicly. The source added that negotiations are currently underway on how compensation costs will be shared among Ottawa, the provinces, and insurers. 

Contacted by email, IBC confirmed that “discussions are ongoing” and that “the next announcement is expected in April 2026.” 

Public Safety Canada stated by email that “work to develop the flood insurance program is ongoing.” No timeline or milestones have been provided. 

A long-awaited program 

The creation of a national low-cost insurance program to protect homeowners at risk of flooding was among the commitments made by the Trudeau government during its re-election campaign in 2021. Then Minister of Emergency Preparedness Bill Blair was tasked with developing the program in his mandate letter. The initiative was also included in the federal budgets of 2021, 2023, and 2024. 

Established in 2020, the Task Force on Flood Insurance and Relocation brought together experts from provincial and federal governments, the insurance industry, and the scientific community. It received funding to study the issue. 

In August 2022, the task force released a report highlighting that only 25 per cent of flood-related damages are currently covered by insurance, despite flooding becoming an increasingly frequent and widespread peril. 

In 2023, a three-year funding envelope of $31.7 million was allocated to support the program’s development. Of this amount, $15 million was earmarked last year to advance the implementation of the national flood insurance program by the end of this year. 

Like many other insurers, IBC has been advocating for a national flood insurance program for several years. 

For nearly a decade, the organization has been sounding the alarm, urging the federal government to implement a system that would protect Canadians at risk of flooding in the event of a disaster. 

Asked to comment on the file’s progress, IBC said it hopes “the program can be implemented as quickly as possible to better protect Canadians from the financial impact of flooding.” “IBC continues to call on all levels of government to take the necessary measures to improve community resilience, including risk mitigation and relocation where warranted,” it added in a written statement. 

National flood risk portal by year-end 

In the meantime, the national flood risk portal, announced in 2021 by Ottawa, could be launched by the end of 2025, Public Safety Canada told the Insurance Portal by email. 

“This resource will provide users with a flood risk index and information on the type of risk and at-risk municipalities,” the federal department noted. “It will also include links to advice and resources to help Canadians take action to reduce the impact of flooding on their property.” 

This digital portal is supported by $15.3 million in funding over three years, announced in the 2023–2024 federal budget.