Evacuees Urged to Prioritize Claims: As wildfires continue to force thousands from their homes, the Insurance Bureau of Canada (IBC) stresses the importance of promptly initiating insurance claims. Daniel Ivans, an insurance expert at Ratesdotca, advises evacuees to contact their insurance companies immediately to begin the claim process, even if a comprehensive damage assessment isn’t yet possible due to ongoing events.
Comprehensive Coverage and Claim Adjustment: Both standard homeowners and renters insurance typically cover fire-related damage and offer provisions for mass evacuations. Rob de Pruis, IBC’s national director of consumer and industry relations, underscores that a complete understanding of the damage is not necessary at the outset. The claims process can be adjusted later based on a more accurate assessment once evacuation orders are lifted and the extent of damage becomes clearer. A claims adjuster will then inspect the property in person to facilitate the process.
Recording Damage and Expenses: The IBC recommends compiling an inventory of damaged or destroyed items and retaining receipts for related expenses. This meticulous documentation enhances the accuracy and efficiency of claims processing. Such details become particularly crucial when faced with the task of navigating claims amid the chaos of wildfire-induced displacement.
Coverage Misconceptions Addressed: There’s a common misconception about “acts of God” exclusions; however, DePruis clarifies that Canadian policies do not have such exclusions. Home insurance covers damage from wildfire and smoke, provided it wasn’t deliberately initiated. Additionally, renters should note that landlord insurance does not cover personal property, emphasizing the importance of renters insurance. Auto insurance policies might also vary in terms of coverage for smoke or fire damage.
Claims Adjusters and Resources: Once a loss is reported, insurers will assign a claims adjuster to facilitate the investigation and claims process. Despite potential short-term call influxes, insurers will allocate resources from other regions to address the demand. While the goal is to expedite reimbursements, ICBC states that individual claims can usually be reported within two years of discovering the damage or loss.
Impact on New Insurance Policies: Individuals seeking new insurance policies may face temporary restrictions due to ongoing fire threats. DePruis explains that insurers are limiting new policy sales for areas under imminent threat, such as evacuation orders. However, renewals will continue to be processed during this period.
Navigating a Record Year for Wildfires: This year has already set a record for wildfires in Canada. With more than 1,000 fires burning across the country and over 140,000 square kilometers affected, the scale of the wildfire season underscores the significance of comprehending insurance coverage and the claims process.
