It is of no surprise to Albertans that weather patterns have a direct impact on insurance claims. Out of the top ten costliest insurance disasters in the country, Alberta is the location of six.
This summer has officially been determined to be an El Niño summer … in fact, even a “super El Niño.” That means homeowners, drivers, farmers, and businesses will be facing even more risks than usual.
Albertans should be on the alert for increased wildfire activity, potential drought conditions, severe storms, and fluctuating temperatures. An El Niño season is known for causing everything from property damage to business interruptions. With fair warning, however, it is a time to assess your readiness as a property owner and get ahead of potential problems.
What is El Niño?
El Niño is a climate pattern that occurs when surface temperatures in the Pacific Ocean become warmer than average. This shift can alter weather patterns across North America, including in Alberta. Every El Niño event is different, however, typically Alberta often experiences warmer and drier conditions during the summer months.
We are looking at a “super El Niño” for the summer of 2026, however, which Environment and Climate Change Canada (ECCC) has forecasted as “ likely to be among the hottest years on record.” It’s a combination of climate change and the upcoming El Niño summer that places Albertans particularly at risk this year.
Increased wildfire risk
Due to Alberta’s history of devastating wildfires, one of the biggest concerns during an El Niño summer is their elevated risk. Dry vegetation, low rainfall, and many days of heat can quickly create the perfect wildfire conditions throughout the province, particularly in forested and rural regions.
Communities near wooded areas, such as cabins, acreages, and recreational properties, may face evacuation orders, fire and smoke damage, and even total property loss. The devastating wildfire seasons Alberta has experienced in recent years have demonstrated how quickly fires can spread and how costly the resulting insurance claims can become.
From an insurance perspective, homeowners should review:
- Whether their policy includes guaranteed replacement cost coverage
- Coverage limits for detached structures like garages, sheds, or fences, as many forget or omit these on their home insurance evaluations
- Additional living expenses coverage if evacuation becomes necessary
- Landscaping and outdoor property limits
Businesses should also evaluate their commercial property coverage and business interruption insurance. Even if a wildfire never reaches your actual location, incidents such as road closures, power outages, evacuation zones, or supply chain disruptions, can still interrupt operations and create financial losses.
Drought and water restrictions
El Niño summers often bring dry conditions that can contribute to drought concerns across Alberta. For all property owners — farmers and ranchers through to business owners such as landscaping companies, golf course owners, and agricultural operations, drought can create operational and financial stress.
In times of drought, crop yields can decline, which can cause a crop insurance claim. In addition, access to water can become restricted, leading to livestock operations facing higher feed and irrigation costs. While traditional farm insurance may not respond to every drought-related loss, specialized agricultural insurance products can help protect against certain production losses and weather-related risks.
For homeowners, prolonged drought can also contribute to:
- Soil shifting and foundation movement
- Cracking in driveways and concrete
- Damage to lawns, trees, and landscaping
We have often seen homeowners be unpleasantly surprised when they learn that gradual damage or earth movement may not always be covered under a standard home insurance policy. Depending on the circumstances, an insurance company could determine failure to address the issue as “neglect.” That is why it is important to speak with qualified insurance brokers such as us at Lane’s about policy limitations and optional endorsements.
Severe summer storms on the horizon
Even though El Niño is commonly associated with dry weather, Alberta can still — and more than likely will — experience sudden and severe summer storms. In fact, warmer atmospheric conditions can often contribute to intense thunderstorms, hail, lightning, and heavy rainfall events.
Alberta is already known as one of the most hail-prone regions in Canada, particularly in areas surrounding Calgary. A single storm can generate millions of dollars in insured losses involving:
- Roof damage
- Broken siding and windows
- Vehicle damage
- Flooded basements
- Damaged crops and equipment
Homeowners should review whether their policy includes sewer backup coverage and overland water protection, as these coverages are often optional. With climate-related weather events becoming more frequent and severe, water damage is now one of the leading causes of property insurance claims across Canada.
Businesses should also assess their vulnerabilities related to roofing systems, outdoor equipment, inventory storage, and electronic systems that could be damaged during major storms or power surges.
Vehicle risks during an El Niño summer
Summer weather patterns can also affect auto insurance claims. Regular comprehensive coverage helps protect against non-collision losses such as:
- Hail damage
- Falling trees or debris
- Fire damage
- Flooding
- Vandalism
Health risks
Albertans need to take care of themselves as well as their properties in times of extreme weather.
When wildfire smoke rolls in, air quality can pose serious health risks. Environment Canada’s Air Quality Health Index helps you understand when it’s safe to be outside:
- 1–3: Low risk
- 4–6: Moderate risk
- 7–10: High risk
- 10+: Very high risk
If the index rises, limit your time outdoors. If you need to be outside, especially if you’re in a vulnerable group (children, elderly, those with respiratory conditions), consider wearing an N95 mask to reduce exposure. You can find the latest air quality updates at Alberta.ca.
The importance of preventative planning
Insurance is only one part of a broader risk management strategy. Preventative maintenance and emergency planning can also help reduce the likelihood or severity of claims.
Property owners should consider:
- Cleaning gutters and drainage systems
- Trimming trees and removing dry vegetation
- Reviewing evacuation plans
- Installing backup power systems or sump pumps
- Creating digital backups of important records
Businesses may also benefit from cyber backups, emergency response planning, and contingency strategies to reduce operational downtime during weather-related disruptions.
Lane’s Insurance covers Alberta
Insurance brokers such as us at Lane’s work for you, not the insurance companies, which is why you can trust us more than the others. We have access to a number of different policies from Canada’s best insurance providers, which we can compare to find you excellent coverage at great rates. We know the right questions to ask to help you determine your ultimate risk factor, the correct amount of coverage for your property and your belongings, and can ensure your policy provides for living expenses while necessary repairs are being carried out to your home after a disaster.
You can rely on your Lane’s broker for the professional service necessary to help you make a smart, educated decision about your home insurance. Contact us at our Calgary, Edmonton, Banff and Alberta offices.
