Wildfire episodes are increasing in number and frequency across the country. Between early spring and early summer 2023, fires raging across Canada reached a record-breaking 8.1 million hectares that went up in smoke, suggesting lasting consequences for the environment and affected communities.

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Committed to supporting policyholders and industry stakeholders, Insurance Bureau of Canada helps them understand this issue and the different steps of the claims process.

HOME INSURANCE COVERAGE IN CASE OF WILDFIRE

Fire and Smoke

  • Damage caused by fire or smoke resulting from a wildfire is covered by most home insurance policies for your primary residence.
  • Damage caused by efforts to extinguish the fire is also covered.
  • Covered property includes personal belongings, the residential building, and outbuildings such as sheds.

Expenses for Food and Lodging

  • Your home insurance policy includes reimbursement of additional living expenses if your main residence becomes uninhabitable or if the civil authorities issue an evacuation order. 

Plants and Trees

  • Insurance coverage may include damaged trees up to a maximum of $250 per tree, with a limit of 5% of the coverage amount. However, this coverage does not apply to seasonal residences. 

ADDITIONAL LIVING EXPENSES DURING AN EVACUATION

Additional living expense coverage reimburses the additional costs that an insured must incur when they cannot remain in their primary residence (e.g.,lodging, transportation and food costs).  

  • If the home has been damaged, these expenses are reimbursed until the damage is repaired, up to the amount of insurance. 

  • If you have received an evacuation order or are denied access to your home, these expenses are generally reimbursable for a period of 14 days. 

  • If you have had to evacuate your home more than once, it is important to contact your insurer to find out what coverage your policy covers, if applicable. It is up to each insurer to determine how the additional living expenses coverage applies in cases where their insureds are evacuated more than once. 

The insurance home policies suggested by IBC does not provide for reimbursement of these costs if residents have left their homes voluntarily or if they have done so following a recommendation. 

THE CLAIMS PROCESS

Whatever the nature of the loss — including a fire— the settlement of a home insurance claim typically involves the following steps: 

  1. Reporting the loss: contact your insurer immediately to report the loss and provide all relevant details. Your insurer will review your insurance policy to determine the coverage applicable to the loss.
  2. Damage assessment and documentation: gather all necessary evidence and documents such as photos, invoices, and receipts to support your claim.
  3. Compensation: If your claim is approved, you will receive compensation to cover the damages suffered, according to the terms of your contract.
  4. Repairs and/or rebuilding: Your insurer will arrange for the cleanup and repair the damaged property, if possible. If not, your insurer will then replace these goods, according to the terms of your contract. To streamline the processing of your claim, your insurer may recommend different suppliers and contractors. You remain free to do business with the suppliers suggested by your insurer.

WHAT ABOUT VEHICLES?

Fire damage to your vehicle is covered if you have purchased one of the following coverages under your auto insurance policy: 

  • Comprehensive coverage 

  • Specified perils coverage  

  • Coverage for perils other than collision or upset 

IBC IS HERE TO ANSWER YOUR QUESTIONS

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