Rising Home Insurance Costs in B.C.’s Shuswap Region
Homeowners in B.C.’s Shuswap area are bracing for a significant increase in home insurance costs, with average premiums rising by about 25%. According to Randi Northeast, wealth and insurance director at SASCU, the surge is largely attributed to costly climate-related catastrophes and inflation. The value of home contents and losses due to climate-related disasters are key factors behind this increase.
Northeast highlighted that 2024 saw a record loss, with over $8 billion paid out across Canada due to severe weather-related claims. This represents a significant increase in claims, with a 115% rise in personal property claims and a 485% increase in the cost of repairing or replacing personal properties impacted by severe weather since 2019.
The Insurance Bureau of Canada reported that 2024 was the costliest year on record for severe weather-related losses, with insured losses exceeding $7 billion in just two months. Northeast cautioned that while shopping around for cheaper insurance might seem like a viable option, it may result in inadequate coverage.
“You can get it cheaper; however, when you experience a loss you may be very surprised to find out what is and isn’t covered,” Northeast warned. SASCU assistant manager Brenda Khela added that sticking with the same insurer can be beneficial, as it can impact the handling of claims, particularly for new customers.
To mitigate rising costs, Northeast and Khela recommended discussing potential discounts with insurance brokers. These may include discounts for being claim-free, age-related discounts, or those related to home improvements such as plumbing or roofing upgrades. A soft credit check can also make a substantial difference, potentially saving up to $600 on home insurance premiums.
The insurance industry is also exploring the possibility of offering discounts for FireSmarting properties, although this is not yet available. For homeowners in high-risk areas, such as those prone to wildfires or floods, insurance may become increasingly unaffordable or difficult to obtain.
In preparation for potential disasters, Northeast advised homeowners to document their properties and belongings by taking photographs or videos and storing them on a portable USB drive. This can be particularly helpful in the event of an evacuation due to wildfires or other emergencies.
As the region continues to face challenges related to climate change, staying informed about insurance options and taking proactive steps to mitigate risks can help homeowners navigate the changing landscape of home insurance in B.C.’s Shuswap region.
