In Canada, the province which suffers from the most wildfires is Alberta. As fire is an insured peril under homeowner insurance policies, individuals that hold insurance policies are able to recover from most of their financial losses, minus their policy deductibles and subject to policy limits, terms and conditions. That being said, if you live in an area where wildfires are common, it is important to be aware of the financial impact that a wildfire can cause to you as well as what preventative measures can help reduce damage.

Do make sure that you understand your policy and have the proper coverage and adequate limits to protect your home and all the contents inside. Don’t ignore evacuation orders or risk your safety by not leaving an area impacted by a wildfire.

Indirect Losses

Even if flames have not directly damaged your home, you may suffer a number of indirect losses. This can include smoke damage, ash settling in your home and spoilage of food as a result of lost power. Also, many residents need to evacuate during a wildfire and can incur additional costs such as having to stay in a hotel and purchasing meals.

Unfortunately, in evacuation circumstances, it is common for residents to be away from their homes for several weeks or even longer. Evacuation orders can stay in place long after the fire has been controlled as there are many other factors which need to be handled in order to ensure safety for residents. These include restoring critical services, removing dangerous debris, testing air quality levels, re-hooking utilities, containing any smaller fires, etc.

What Is Covered During an Evacuation

Your comprehensive homeowner’s insurance policy will include mass evacuation coverage to provide assistance with any additional expenses that you may occur due to the evacuation.

Typical expenses that are covered include:

• Accommodation
• Emergency clothing and toiletries
• Food
• Pet boarding
• Fuel receipts incurred as part of the evacuation

Expenses which are not covered include:

● Income replacement
● Regular expenses (mortgage, loan, car payments)

When faced with a mass evacuation, it is important to keep all of your receipts. Policies vary for individual coverage limits and if you are unsure of what your coverage includes, refer to your policy.

Claims Process

While the same claims process applies to wildfire damage as other losses, insurance companies recognize the urgency of large natural disasters. Many companies have what is called a Catastrophe (CAT) team to work on site in the affected area to help residents get what they need to survive, cover immediate needs and provide support. Being the victim of a wildfire is a traumatizing and emotional time, and insurance companies will make every effort to be there and support their policyholders in their time of need.

Photograph by Jeff Werner

Wildfire Tips

Although nothing can ensure that your home is not subjected to a wildfire, there are some tips which can help in preventing damage.

Protect around your home – Try to avoid having trees within close proximity of the building structures or other highly flammable materials such as garbage, woodpiles, containers filled with any flammable materials. Keep grass mowed and well watered.

Building a home – Where ever possible use fireproof or fire resistive building materials.

Be prepared – If a wildfire alert has been issued, be ready to evacuate. Pack suitcases with clothing, toiletries, medication and important documents and be prepared to leave immediately once an evacuation notice has been issued.

Part of being prepared is also knowing what your policy covers and what to expect in the event of a wildfire. Take the time to review your policy or contact your insurance provider for additional details.

About the Author

Kristopher Parks graduated with a Bachelor’s in finance at the University of Calgary. He has over 10 years of experience in the insurance industry as an agent/broker. He enjoys spending his free time with his family by going to hockey games and camping. If you’d like to contact him, you can do so at his LinkedIn.