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Home insurance rates expected to rise in B.C. fire zones due to California fires

Insurance rates to rise

Cindy White

Home insurance rates are expected to rise again this year, driven by the escalating cost of the California wildfires.

Estimates put the insurance losses at US$30 billion to $45 billion but Shaun Sinclair, program head for BCIT General Insurance and Risk Management, suggests it could rise as high as $70 billion, making it one of the costliest disasters in U.S. history.

He says reinsurers and underwriters are likely reconsidering where to put their money.

“I would imagine that, but I can’t say for sure, reinsurers are going to go, OK for climate-related risks – flood, fire, weather-related, hurricanes, hail storms, that kind of thing — we’re going to have to increase the rates.

“Otherwise, what they could do is only accept risks that are either hardened or are not in those areas,” notes Sinclair.

So, how do you harden your property against things like wildfires?

Sinclair says by using materials like fire-resistant siding and roofing material, you are helping reduce your risk. It’s something many homeowners are considering and some who are rebuilding in the wake of the 2023 McDougall Creek wildlife have already installed.

He also says it’s important to stay on top of FireSmart principles like clearing flammables from within 10 metres of your home and regularly cleaning out gutters.

In Canada, disaster-related insured losses have been steadily rising in the past decade, hitting a record high in 2024 of $8.5 billion.

“Some people don’t believe in climate change but certainly, there are climate risks that are changing the face of insurance on the property side,” Sinclair points out.

He adds that while investing in fire-resident material might come at a hefty cost, it could pay off in the long run.

“I think that is going to be the future.

“You’re going to pay huge rates if you’ve got a really big risk, but if you can manage your risk, your rates are going to go down.”



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