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Wildfire Insurance Claim Tips: From Ashes to Recovery

Wildfires can devastate homes and communities, leaving homeowners to navigate the complex process of insurance claims. As these natural disasters become more frequent, understanding your wildfire insurance coverage is crucial.

Canadian property and casualty insurers are once again facing the possibility of a wildfire season that is higher than averag e. The estimated damages from the Jasper wildfire, combined with the recent flood in Toronto, which insurers say could result in over $1 billion in claims, means that the damages from severe weather events so far could exceed $1.7 billion in 2024.

Although the claims for the July weather events are still being calculated, this would mean that the industry is already halfway towards experiencing another year with $3 billion in natural catastrophe damages.

As of now, approximately 2.4 million hectares have been burned in 2024, slightly higher than the historical average of 2.1 million hectares. In comparison, last year’s historical wildfire season resulted in the destruction of 16.5 million hectares for the entire year of 2023.

However, it is still too early to predict whether the 2024 wildfire season will be comparable with 2023, which marked the most active and destructive wildfire season on record,” DBRS reports.

You need to know how to protect your property and financial interests when facing the aftermath of a forest fire. Whether you’re dealing with a current claim or want to be ready for future risks, we hope this article information will help you confidently navigate the insurance landscape.

Understanding Your Wildfire Insurance Coverage

To protect your home and financial interests in fire-prone areas, you need to grasp the essentials of wildfire insurance coverage. Yes, both home and business insurance policies generally cover damage caused by fires, including those resulting from forest fires. Remember, do not attempt to enter or clean your property after fire damage until it has been declared safe by emergency officials.

Types of Coverage

Your home or even seasonal home, such as cabins and cottages, includes insurance that typically covers damage caused by fire. This coverage also extends to other structures on your property, as well as personal belongings.

It’s important to note that “comprehensive” or “all perils” Saskatchewan auto insurance policies also cover your vehicle for fire damage. If any of your vehicles sustain damage from a wildfire, and your vehicle is registered in Saskatchewan, the plate insurance will provide coverage for the necessary repairs. However, you will be responsible for paying a deductible of $700.

On the other hand, if you have our Saskatchewan Auto Pak comprehensive coverage, it will cover the cost of repairs for your vehicles in the case of damage caused by a wildfire or lightning, and you will not be required to pay a deductible.

Policy Limits

Review your policy limits to ensure they adequately cover the full replacement cost of your home and belongings. Many policies limit how much they will pay for temporary living expenses, for example. If you’re forced to evacuate due to a mandatory order, most policies cover reasonable additional living expenses, but they may be limited to a specified time period.

For example, SGI Canada includes Mass Evacuation Coverage on all home insurance policies. This valuable coverage provides financial assistance for your living expenses, such as hotel accommodations, food, and gas, in the event of an emergency evacuation mandated by a public authority, including municipal or government authorities.

Many insurers provide similar coverage; be sure to ask your advisor to outline this protection for your policy, as coverage wording may vary. The time duration to use this coverage may also differ between insurers, so when filing a claim, be sure to review the limitations with your adjuster.

Exclusions

Wildfire insurance policies may have exclusions for certain types of damage or circumstances. For instance, some policies might not cover damage caused by earth movement, including landslides or mudslides. Understanding these exclusions is crucial to avoid surprises when filing a claim.

Remember, insurance coverage differs from company to company, and your coverage can differ greatly from your friend’s. Maintain open communication with your broker to understand your specific coverage and any potential limitations.

Documenting Damage and Losses

To ensure a smooth claims process after a wildfire, you must document your losses thoroughly. This documentation serves as crucial evidence for your insurance provider and helps you receive fair compensation for your damaged property.

Creating a home inventory

A comprehensive home inventory is invaluable when filing a wildfire insurance claim. It’s best to create this inventory before disaster strikes, as it can be challenging to remember everything you owned after a traumatic event. To create your inventory:

Use a spreadsheet or a specialized home inventory app to list all your belongings. Taking photos or videos of your home also helps.
Include details such as item descriptions, quantities, ages, and costs.
Store your inventory in a secure online location or off-site for easy access.

Remember to update your inventory regularly as you acquire or remove new items.

Keeping receipts

Maintaining a record of all expenses related to your wildfire loss is crucial:

Keep all receipts for cleanup efforts and temporary living expenses.
If possible, gather proofs of purchase for damaged or destroyed items.
For high-value items like jewelry or technology equipment, providing documentation and appraisals is particularly important.

Don’t worry if you don’t have perfect records – insurers understand that some documentation may have been lost in the fire. Your claims adjuster will also provide declaration forms. The goal is to provide as much information as possible to support your claim and ensure you receive fair compensation for your losses.

Filing a Wildfire Insurance Claim

Contacting Your Insurer

When you’re ready to file a wildfire insurance claim, your first step is to get in touch with your insurance broker. Most insurance companies offer 24-hour claims services, so you can start the process immediately.

When you contact your advisor, be as detailed as possible about the circumstances and any subsequent damage. If your home is unfit to live in, ask about eligibility for Additional Living Expenses (ALE) coverage under your policy. ALE covers costs above your normal expenses, such as temporary accommodations or using a laundromat if your temporary housing lacks laundry facilities.

Ask for additional resources supplied for your specific insurer. For example, Wawanesa Insurance provides a detailed claims guide specifically tailored to wildfire damage and mass evacuation coverage.

In the face of a wildfire, timely and accurate information is crucial for your safety. It is imperative to closely follow the guidance of local civil authorities. Evacuation orders should be obeyed promptly, as these directives are based on expert assessments of the situation.

Once the immediate threat has passed, it is equally important to stay informed about conditions on the ground. Official updates will provide clear instructions on when it is safe to return to your home or property. Rushing back prematurely can pose significant risks to yourself and others.

Navigating wildfire insurance claims requires careful preparation and understanding. Homeowners should familiarize themselves with their policy details, including coverage types, limits, and exclusions. Thorough documentation of damage and losses, along with prompt communication with insurers, plays a crucial role in the claims process.

By keeping detailed records and working closely with adjusters, individuals can increase their chances of receiving fair compensation.

More resources from FireSmart™ Canada

Check out FireSmart Canada, a national program that helps Canadians increase neighbourhood resilience to wildfire and minimize negative impacts.

Take their free one-hour course, FireSmart 101, to learn more about protecting your property.

What are effective strategies for:

1. Reducing wildfire risks?

Effective wildfire mitigation strategies include reducing flammable vegetation around your property, thinning tree canopies to prevent fires from spreading across treetops, and removing dead wood and debris.

2. Preparing for a possible evacuation?

Ensure that your house number is clearly visible.
Move any flammable materials, such as stacks of firewood and propane tanks, at least 30 feet away from the foundation of your home and any outbuildings. Make sure that no items capable of catching fire are in contact with your house, deck, or porch.
By keeping your grass cut to a height of less than 10 cm, you can slow down the spread of fire towards your home. Create a safety zone around your property by clearing brush within a 200-foot perimeter, removing dead ground cover and debris, and raking mulch at least five feet away from your house.

HWI branded lined breaker of yellow and blue

Thanks for reading our article; I hope you enjoyed this month’s wildfire insurance claims topic. Here are some more ways to access more insurance information and tips: