Wildfire Insurance in Canada

What does home insurance cover when there is a wildfire?

Most home insurance policies, even basic ones, cover fire damage, including that caused by natural disasters, such as wildfires.

Coverage typically includes rebuilding or repairing your home and outbuildings, replacing damaged belongings (though high-value items may require separate coverage), and covering temporary living expenses during repairs or evacuations.

Wildfire damage is generally covered by home insurance in two key ways: dwelling coverage protects your home's structure (including garage and other permanent buildings) and covers repair or rebuilding costs, plus additional living expenses if you need to relocate. Personal property coverage protects your belongings (furniture, clothing, electronics, etc.) from damage or destruction.

Remember to check your policy for exclusions and limitations, and consider documenting your possessions with photos and a list for easier claims processing.

Do you have coverage for wildfires?

Securing enough coverage for your home before a natural disaster is crucial. Speak with our brokers to learn more about adding additional fire coverage to your policy today.

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What restrictions or limitations are there with wildfire insurance coverage?

Insurance companies may temporarily restrict new policy sales and coverage changes in areas facing immediate wildfire threats, though existing renewals remain unaffected. A Declaration of Emergency Endorsement in many policies extends coverage for 120 days if renewal is delayed due to an emergency.

Because insurance protects against unforeseen events, securing year-round coverage is crucial, rather than waiting until a threat emerges. Temporary restrictions may include halting new policies, altering deductibles or coverage limits, and preventing major policy changes; these restrictions are lifted as the threat subsides.

Will my premiums go up as a result of a wildfire?

Whether your home insurance premiums will increase after a wildfire depends on several factors. If your home sustained damage and you filed a claim, it's highly likely your premiums will increase. Insurers assess risk, and a claim, especially a large one, indicates a higher risk of future claims.

Even if your home wasn't directly damaged, if the wildfire significantly impacted your area (increased risk of future fires), your premiums might still go up because your insurer now sees your property as being in a higher-risk zone. The extent of the premium increase will depend on your insurer, the specifics of your claim (if any), and the overall assessment of the risk in your area.

How much wildfire coverage do I have?

Coverage details depend on your specific policy; contact your insurance representative for clarification.

Homeowner's policies typically offer replacement cost coverage up to your policy limit. Some policies offer guaranteed replacement cost, covering all repair or rebuilding expenses, even exceeding the policy limit (usually with a "same site" rebuild requirement).

How are fire insurance rates determined?

Fire insurance rates are determined by assessing the risk of fire damage to your property. Key factors include:

• Location: High-risk areas (e.g., those prone to wildfires) result in higher premiums. Statistical data on fire frequency in your area significantly impacts your rate.
• Protection Level: Homes within 300 meters of a hydrant and near a fire station receive the lowest rates (fully protected). Those further from a station but possibly near a hydrant have moderate rates (semi-protected). Homes far from both have the highest rates (unprotected).
• Home features: The presence of fireplaces in your home, even if they gas, it can also increase your premium.

Does tenant insurance provide coverage for wildfire damage?

Tenant insurance doesn't directly cover damage to the building itself caused by a wildfire; that's the landlord's responsibility. However, it does typically cover the loss or damage to your personal belongings caused by a wildfire and may also cover additional living expenses if you're displaced due to the fire. The specifics depend on your policy and its coverage limits.

How to file an insurance claim for wildfires

If you need to file a home insurance claim related to wildfire damage, here are some tips:

• Contact your insurer immediately: Most offer 24-hour claims service. Provide detailed information.
• Document the damage: List and photograph all damaged or destroyed items when safe. Gather proofs of purchase, receipts, and warranties if possible. Keep damaged items unless they are a health hazard.
• Keep receipts: Save all receipts for cleanup and living expenses if displaced. Ask your insurer about coverage amounts and timeframes.
• Check secondary residences: Inspect any seasonal or secondary properties (e.g., cottages) for damage and report it to your insurer as soon as possible. Coverage may differ from your primary home policy; review your policy or contact your insurer to confirm.

What steps can you take to protect your home from fires?

While you can't always predict a fire, taking proactive steps can significantly reduce the risk and impact. Here are some tips:

• Evacuation plan: Develop a plan for quick evacuation and have an emergency survival kit stocked with water, food, money, and first aid supplies.
• Insurance: Ensure you have adequate home insurance coverage.
• Report fires in your area: If you see an unexpected fire or wildfire, be sure to report it.
• Follow local regulations and fire bans: If there are fire bans imposed, make sure you follow them.
• Home maintenance: Clear flammable materials (debris, shrubs, wood) from around your home. Use fire-resistant roofing and siding (asphalt, metal, slate, clay, stucco, brick). Keep propane tanks and firewood at a safe distance from the house and deck. Follow seasonal maintenance schedules in fall or spring for your home such as trim overhanging branches, regularly clean roofs and gutters and remove debris from under the deck.
• Safety systems: Install and maintain smoke detectors (check batteries!), fire extinguishers, and consider a home sprinkler system.
• >Home inventory: Create a detailed inventory and store it securely (fireproof safe, safety deposit box, or cloud storage).

Wildfire statistics in Canada

Here is an overview of the most recent wildfire statistics across Canada.

• 2023 saw record-breaking forest fires in Canada, burning over 18.5 million hectares—more than double the previous record. The fires, starting in March, impacted all provinces, particularly the west, and even affected neighbouring US states like Maryland and New York - over 17.3 million hectares and approximately 5,475 fires were recorded.
• While British Columbia attributes 60% of its wildfires to lightning and 40% to human activity. A roughly even split between natural and human causes may be a more reasonable general assumption.
• 2023's wildfires burned seven times the average annual amount in Canada, covering an area roughly equivalent to three and a half Nova Scotias.

For up-to-date information on Canadian wildfires, check the daily maps from the Canadian Wildland Fire Information System and the Canadian Interagency Forest Fire Centre (CIFFC) during the fire season.

Contact ThinkInsure for additional coverage for wildfires

It’s important to understand your home insurance coverage for wildfires, especially with the increasing frequency and intensity of these natural disasters. While most standard home insurance policies offer protection for your dwelling and personal property, as well as cover additional living expenses, it's vital to review your specific policy for any limitations or exclusions.

Taking proactive measures to mitigate fire risks and documenting your possessions can further safeguard your home and ensure a smoother claims process. Stay informed, stay prepared, and contact ThinkInsure for an Ontario home insurance quote.