What does my insurance cover in case of wildfires?

Wildfires are increasing in number and becoming more frequent across Canada. In 2023, wildfires scorched a record 8.1 million hectares of land nationwide. The risk is real.

Here is information to help you understand your insurance coverage and guide you through the claims process, so you’ll know what to do if:

• There’s a wildfire in your area
• You’re forced to evacuate your home
• Your property gets damaged

Home insurance coverage in case of wildfire

Fire and smoke

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

Trees and vegetation

• Home insurance also covers damage to trees, up to $250 per tree and 5% of the coverage limit. However, that coverage does not apply to seasonal homes.

Additional living expenses in the event of evacuation

• Additional living expense coverage helps pay for the extra costs you incur when you’re unable to stay in your primary residence (e.g., the costs of temporary accommodations, meals and transportation).
• If your home has been damaged, you can be reimbursed for those costs up to your coverage limit while repairs are underway.
• If you’ve been ordered to evacuate by civil authorities or you’ve been denied access to your home, you can generally claim reimbursement for your additional living expenses for a period of 14 days.
• If you’ve had to evacuate your home on more than one occasion, be sure to reach out to your insurer to confirm the details of your coverage. It is up to each insurer to determine how coverage for additional living expenses applies when policyholders have been evacuated more than once.

Under the home insurance policy proposed by IBC, additional living expenses are not reimbursed if residents evacuate by choice or based on a recommendation.

The claims settlement process

All home insurance claims, including fire claims, involve the following steps:

1. Reporting the loss: Contact your insurer immediately to report the loss occurrence and provide all relevant details. Your insurer will review your insurance policy to determine the coverage that applies to the loss.
2. Assessing and documenting the damage: Gather all the necessary evidence and documents, such as photographs, invoices and statements, to support your claim.
3. Receiving compensation: If your claim is approved, you will receive compensation to cover the damage incurred according to the terms and conditions of your policy.
4. Completing repairs and/or reconstruction work: Your insurer will have your damaged property cleaned and repaired if possible. If not, your belongings will be replaced according to the terms and conditions of your policy. To help expedite the claims process, your insurer may recommend various contractors and service providers. Whether you hire one of the service providers recommended by your insurer is up to you.

What about vehicles?

Fire damage to your vehicle is covered if your auto insurance policy includes one of the following coverage options:

• “All perils” coverage
• Coverage against perils other than collision or upset
• Coverage against specified perils

If your vehicle has been damaged by fire, get in touch with your auto insurer to start your claim. As with home insurance, a preliminary damage assessment will be carried out. Depending on the coverage in your policy, the insurer will decide whether your vehicle will be repaired or replaced if it’s considered a total loss.

IBC Insurance Information Centre also offers a range of services to guide and support consumers.