Rising Home Insurance Costs in Shuswap
Property owners in B.C.’s Shuswap region are facing a significant increase in home insurance costs, with average premiums jumping about 25%. According to Randi Northeast, wealth and insurance director at SASCU, the surge is attributed to costly climate-related disasters and inflation. The value of home contents and losses due to severe weather events are key factors behind this rise.
The Insurance Bureau of Canada reported that 2024 was the costliest year on record for severe weather-related losses, with over $8 billion paid out across Canada. This represents a significant increase from the previous record of $6 billion in 2016. Northeast noted that there’s been a 115% increase in personal property claims and a 485% rise in repair/replacement costs for properties affected by severe weather since 2019.
While shopping around for cheaper insurance is an option, Northeast warns that it may come at the cost of adequate 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 cautioned. SASCU assistant manager Brenda Khela suggested that sticking with the same insurer can be beneficial, as it may impact the handling of claims, particularly for new customers.
Insurance brokers recommend reviewing policy details with homeowners to identify potential discounts. These may include being claim-free, age-related discounts, or updates to home improvements like plumbing or roofing. A soft credit check can also result in substantial savings, up to $600 for homes. Discussions are ongoing in the insurance industry about offering discounts for FireSmarting properties, although this is not yet available.
The recent wildfires in the Okanagan-Shuswap region have further complicated the insurance landscape. Homeowners in certain areas, particularly those prone to wildfires or floods, may face challenges in accessing insurance or may be quoted higher premiums. Northeast advised that insurers typically won’t bind policies when there’s an active fire within 50 kilometers of a home. To prepare for potential evacuations, she recommended that homeowners document their properties and contents through photographs or video, storing this information on a portable USB drive.
As the region continues to grapple with climate-related challenges, staying informed about insurance options and taking proactive steps to mitigate risks will be crucial for homeowners in the Shuswap area.
