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A numerical hydrodynamic model was used to simulate the generation and evolution of storm surges in Atlantic Canada in response to synoptic‐scale surface wind and atmospheric pressure fields. The modelling was conducted as part of a broader initiative to support community‐scale inundation modelling and coastal flood risk assessment for communities located in the Acadian Peninsula region of New Brunswick. The 44 largest storm surge events on record at a tide gauge proximate to the region of interest were simulated using the numerical model. Initially, a comparison between simulated storm surges and peak non‐tidal residuals from tide gauge records showed relatively poor agreement, producing an R2 value of 0.403. Model skill was improved by incorporating the influence of sea ice cover on air‐sea momentum transfer in the hydrodynamic model, and improved correlation with measured residuals was obtained by adding estimates of wave set‐up to the predicted storm surges, ultimately resulting in an R2 value of 0.803. The results of the simulations provided a basis for identifying distinct regional factors affecting storm surges and water level residuals and demonstrated conditions where wave set‐up and sea ice cover play an important role in contributing to extreme high water levels. [ABSTRACT FROM AUTHOR]