FireSmart could become essential when buying fire insurance in the Okanagan
As bad as wildfires have been this year, BC is nowhere near to being in California’s league.
Massive destructive fires year after year in that populous state has resulted in two major insurance companies (State Farm and Allstate) pulling out of the home insurance business in California.
Despite two destructive fires in the last two years in the Okanagan, Canadian insurance companies are not even hinting that they might do the same.
“California is really a response to the significant increase in frequency and severity of wildfire events in certain populated regions,” Raymond Monteith, a senior vice-president for HUB International, told iNFOnews.ca. “Carriers are beginning to see that, in those environments, as something of a new normal.
“One of the differences in Canada is, as much as wildfires are alarming and in some ways sensational, they are largely events that are occurring in remote areas. They do, obviously, impact occupied areas at times but the carrier response in Canada continues to be that those are considered accidents and insurance responds as such.”
HUB International, he said, is the largest insurance brokerage firm in the world.
READ MORE: Poomba the 'miracle pig' alive and well in McDougall Creek Wildfire evacuation zone
Having significant property damage caused by two wildfires in two years doesn’t put the Okanagan anywhere near to that being a new normal here, Monteith said.
What it, and other wildfires, do is make insurance companies more cautious.
“What we do typically see in any aspect of coverage and securing coverage, is an increased onus on the insurance applicant to take some responsibility for minimizing, as much as possible, their exposure to wildfire risk,” Monteith said.
“While that’s not possible in all ways, there are certain guidelines and guidance, things like FireSmart and building types and building back better construction types. There are certain things that, historically, insurance carriers have begun to require from the market before they will provide insurance.”
FireSmart is a national program aimed at making homes more fire resistant by, for example, moving flammable materials away from houses. It was credited by Clifton Road residents in Kelowna for saving their homes after embers from the McDougall Creek Wildfire sparked fires in Kelowna and Lake Country.
READ MORE: Kelowna's Clifton neighbourhood was spared by preparation for fire, not good luck
Being in a higher risk region, like BC or the Okanagan, may also affect the premiums paid for house insurance but there’s no clear way to determine how much of a factor that is.
Every municipality has a different insurance rate based on not only wildfire risk but things like the potential for destructive floods, tornados or earthquakes.
Whether a home is located in downtown or on the edge of a forest doesn’t play a role, if the response time by the local fire department is the same.
In rural areas, premiums may be higher if the response time is longer. Being outside a fire district protection area altogether may make it impossible to get house insurance.
Monteith advises people to not only take more responsibility for minimizing fire risk but to ensure they have the right coverage.
When it comes to wildfire insurance, there is no boilerplate language that fits every situation.
“Having all-risk with replacement cost coverage is going to be important,” Monteith said. “It is important that a policy accurately reflects the nature of the risk and that the cause of loss is accurately reflected and properly covered within the policy.”
That means actually reading the insurance policy, which is not always easy for people who are not used to reading contracts.
“The process of securing coverage, in some instances, can be quite straightforward,” Monteith said. “But in some instances, especially where there are multiple exposures and there are complex exposures, securing appropriate coverage is not necessarily straightforward.
“Therefore, it is helpful to interact with a competent and conscientious broker who is going to ensure they understand a particular insurance coverage requirement and is going to act to secure that requirement.”
The other advice given by many is to keep an accurate record of personal possessions, preferably with photos and/or video, that is stored offsite in case of a catastrophic fire.
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