As the toll continues to mount from wildfires in B.C. this summer, the Insurance Bureau of Canada is urging people to get fire insurance, and governments and other stakeholders to find ways to reduce the risk.
“The time has never been more clear that we do need to build more resiliency and we do need to work together to find a way to reduce or minimize our potential exposure to these threats that we’re facing,” says Rob De Pruis, director of consumer and industry relations with the Insurance Bureau of Canada.
He points out there are no easy answers, but governments, industry and other stakeholders need to get together and collaborate, and he agrees wildfire policy may need a rethink.
When questioned about the cost of insurance for people who live in wildfire zones with no fire department coverage, De Pruis says a lot of factors go into calculating a premium, and it’s very unlikely you would be fully turned down.
“Fire insurance has been around for hundreds of years, and fire insurance is readily available in B.C. and throughout the rest of the country.”
“The insurance is there to protect your largest financial asset that you have, which is your home or recreational property,” says De Pruis.
“Insurance, when we think about the overall cost, what happens if you don't have insurance and you have a significant loss. That’s really a difficult question that a person has to think about, is what will this cost me if there’s a major event that happens to my property.”
Unfortunately, major natural disasters are becoming all too frequent.
Between 1983 and 2008, the insurance industry was paying out on average about $425 million annually for severe weather costs. Over the past decade, the number has increased 360 percent, to almost $2 billion a year. Six out of the ten costliest events in Canadian history have been in the same decade.
While De Pruis says wildfire policy needs to be examined, he also acknowledges that the BC Wildfire Service is doing what it can, and tough decisions have to be made.
“It’s clear that a small change in the weather can significantly impact these fires and the way that they’re changing direction and their aggressive behaviour. These are concerning and it’s clear that we need to create a culture of preparedness and build more resiliency to the risks we face.”
De Pruis adds, “We need to do better to prepare for wildfires, floods, hail, windstorms. These perils are having just a huge impact on people and property.”
