While the extent of damage is unclear, the images and videos coming in from the wildfire destruction in Jasper, Alta., paint a bleak picture.
Evacuations were carried out before the fire reached the townsite and as more information becomes available over the coming days, many will be looking to navigate what comes next if their homes, properties or businesses have been hit.
But the process of filing insurance claims can often feel hard to navigate. Experts say the first step is simple: reach out to your broker.
“Standard home and business insurance does cover damage from wildfire. So, if you have insurance coverage, if you’ve been impacted, reach out to your insurance provider right away. Your insurance company is here to help you. This is what they plan for. This is what they’re here for,” said Rob de Pruis, national director of consumer and industry relations for the Insurance Bureau of Canada.
“These policies also cover additional living expenses. So if you’re evacuated, it covers things like hotel costs and other expenses that you may be incurring.”
Steven Harris, a licensed insurance broker and expert at LowestRates.ca, said the insurance company “will be able to share key information regarding next steps, how the damage will be evaluated, and what the homeowner’s options are, including what coverage may be available for hotels, food and transportation while the homeowner is unable to live at the property.”
Harris said evacuees should save any and all receipts for expenses they make while they are not living on their property so that they can claim those expenses.
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Jasper, an iconic and scenic tourist destination, is home to many hotels, lodges, inns, restaurants and cafes.
“The cost of these events is huge and it will have a big impact on everything from the cost of rebuilding … (to) the cost of insuring these businesses, in light of the extreme events that are taking place,” Beth Potter, CEO of the Tourism Industry Association of Canada, said in an interview with Global News.
Owners of commercial establishments should follow the same steps as homeowners, de Pruis recommends.
“Whether it’s a home or a business insurance policy, the process remains relatively the same. Initiate that initial call to your insurance provider to start the claims process,” he said.
Once a claimant initiates the process by contacting their broker, the insurance provider will assign an adjuster who will walk them through next steps.
Most companies, de Pruis said, are equipped to handle claims at all hours of the day.
“Many insurance companies have 24-7 claims reporting. You can call after hours. You can look on their website to initiate that claims process, to get things started for you,” he said.
Wildfires are among the costliest extreme weather events.
“We do know that the costliest insured event in our nation’s history is a wildfire, and that was the northern Alberta wildfire in 2016,” de Pruis said, adding that no place in the country was truly immune from the threat of wildfires.
According to the Insurance Bureau of Canada, the Okanagan and Shuswap wildfires that burnt from August to September last year in British Columbia caused $720 million in damage.
The Tantallon, N.S., wildfires last year cost over $165 million.
However, de Pruis said people should not assume their premiums will go up.
“One individual event does not automatically increase everyone’s insurance premiums. The insurance industry is well capitalized for these events, and they specifically spread out the risk over large geographical areas to minimize the direct impact to individuals that are impacted in a community,” he said.
Harris said when the time comes to rebuild or repair, people can steps to make sure their premiums don’t skyrocket.
“Homeowners can use fire-retardant materials when building or repairing the home, and potential homeowners can consider purchasing properties closer to fire stations, or fire hydrants, as this can help reduce premiums,” he said.
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