Hail is a severe weather hazard in Canada, damaging commercial assets, public infrastructure, homes, vehicles, and crops. It’s of particular concern in the Prairie provinces, especially southern Alberta, where hail has caused billions of dollars in insurance claims over the past 25 years.
Claims have surged dramatically, with the August 2024 Calgary hailstorm alone causing an estimated $3.25 billion in insured losses—the second costliest natural disaster in Canadian history. Canada’s total insured severe weather losses reached a record-breaking $8.5 billion in 2024. The damage from hailstorms is expected to increase “due to the increased concentration of assets in Canadian cities and suburban housing developments, and the ever-growing costs of replacing damaged and destroyed property,” according to the ICLR.
Hail is formed inside thunderstorm updrafts, which creates pellets of ice that can range in size from a pea to a golf ball—and sometimes larger. Once hailstones are the size of a quarter or larger, they can cause significant damage to roofing, vehicles, and crops, and wind-driven hail can fall at an angle that rips apart siding and breaks windows. But damage isn’t always obvious; holes in roofing, for example, can lead to leaks behind walls, creating water and mould problems down the road.
While Alberta often makes headlines for its severe hailstorms, hail can affect any region in Canada — typically between June through September. So, what can be done to mitigate future hail losses? Here are some common areas where your property may be vulnerable and some practical steps you can take to help reduce your risk.
Inspect and protect rooftop equipment
A common issue is damage to rooftop or unprotected air conditioning units on commercial and industrial buildings. This can be a significant cost because these units are often not covered, and the foils in them are very vulnerable to damage — even strong winds can cause damage.
The insurance deductible for rooftop A/C units tends to be high since they’re so susceptible to damage; in some cases, insurance companies are pro-rating hail damage rather than offering a deductible.
One way to mitigate damage is to place a specially designed cage around the A/C unit that allows for proper airflow. Adding this protection can often reduce your deductible significantly. In high-risk areas such as Calgary, most large commercial buildings and even condominiums have protective measures in place.
Address potential roof and water damage
Hailstones can punch holes in a roof or tear through siding, creating the possibility of water damage. Water can pool on the roof and drain into areas that are not visible, leading to significant damage. Regular inspections are very important, especially just before hail season, because water damage can result in much larger claims.
A longer-term solution is to replace roofing with impact-resistant materials, particularly for properties in moderate to high-risk hail zones. Proper roof cladding is also essential in protecting against water infiltration. On new builds or when re-roofing, consider Class 4 shingles or impact-resistant materials such as rubber or metal. Softer metals like aluminum or copper are more prone to hail damage.
Asphalt shingles are the most common roof covering in Canada, but they’re also prone to damage from wind, rain, and hail. Extreme weather from heat waves to snowstorms can cause these shingles to curl or blow off, increasing the potential for water damage.
Underwriters Laboratory (UL), a widely recognized independent organization that provides testing, inspection and certification services, has testing protocols in place for roofing materials, and impact-resistant roofing is covered under UL 2218. To receive certification, the roofing material must withstand a barrage of steel balls that simulates hail. Class 4-rated roofing is expected to hold up against most hailstorms, though ceramic, slate, concrete, and some metals could still suffer cosmetic damage.
Steel can beheavier and more expensive but offers better protection than aluminum or copper for roofs on commercial buildings because softer metals are more easily damaged by hail.
Insurance companies may lower your deductible or give you a break on your premium if you replace your roof with hail-proof materials. However, the only time to realistically do this is after a claim is made or when you need to replace your roof.
That’s why it’s important to mitigate risk in other ways, such as shielding your rooftop A/C unit and watching weather reports to be prepared for potential storms. Restaurants with patios, for example, should put away their tables, chairs, umbrellas, and heaters if a storm is approaching.
Secure outdoor assets
Restaurants and businesses with patios should put away tables, chairs, umbrellas, and heaters if a storm is approaching. Entire patios can be destroyed by hail, which means not only property damage but also business interruption until everything is replaced. This can be more expensive than simply replacing a few tables and chairs.
Protect your business with the right policy and advice
It’s important to understand what types of damage are covered under your policy and if there are ways to reduce your deductible. Our Risk Services team can help you assess the condition of your roof and recommend ways to help your property withstand hail. However, it’s important to note that while our Risk Services team can provide advice, it isn’t always possible to assess the roof without direct visual inspection — that’s usually left to tradespeople who have the equipment and expertise to access the roof safely.
If you know or suspect there is a problem, fix it before it gets worse. Paying attention and acting early can mitigate a lot of risks. Learn more by visiting our Risk Services page today!
