Rising Home Insurance Costs in Shuswap, B.C.
Homeowners in B.C.’s Shuswap region are bracing for a substantial increase in home insurance premiums, with an average rise of about 25%. The surge is attributed to costly climate-related catastrophes and inflation, according to Randi Northeast, wealth and insurance director at SASCU.
Northeast explained that both home and tenant insurance are affected, partly due to the increasing value of personal belongings. The region’s exposure to climate-related disasters has also contributed to the hike. In 2024, record losses were reported, with over $8 billion paid out across Canada due to severe weather.
The Insurance Bureau of Canada reported that 2024 was the costliest year on record for severe weather-related losses, surpassing the previous record of $6 billion set in 2016. Northeast noted a 115% increase in personal property claims and a 485% rise in the cost of repairing or replacing damaged properties since 2019.
While shopping around for cheaper insurance is an option, Northeast cautioned that it may not provide the same level of 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,” she warned.
SASCU assistant manager Brenda Khela suggested that sticking with the same insurer could be beneficial, as it may impact the handling of claims. “When you are new with a company and you have a loss in the first year, they do things differently for you than someone that’s been with them five or 10 years,” Khela explained.
To mitigate costs, homeowners are advised to consult their insurance brokers about potential discounts. These may include claim-free discounts, age-related discounts, or discounts for home upgrades such as new plumbing or roofing. A soft credit check can also make a substantial difference, potentially saving up to $600.
The insurance industry is also exploring discounts for FireSmarting properties, although this is not yet available. Northeast noted that owners of homes in certain areas, particularly those prone to wildfires or floods, may face challenges in accessing insurance or may be charged higher premiums.
In light of recent wildfires, Northeast recommended that homeowners take proactive measures, such as photographing their homes and contents and storing the images on a portable USB drive. “It’s really helpful to take pictures or have footage,” she said.
By being informed and taking steps to mitigate risks, homeowners in Shuswap can better navigate the changing landscape of home insurance.
