Rising Home Insurance Costs in Shuswap Region
Property owners in B.C.’s Shuswap region are facing a significant increase in home insurance costs, with an average rise of 25%. According to Randi Northeast, wealth and insurance director at SASCU, the surge is attributed to costly climate-related catastrophes and inflation. The value of home contents and losses due to climate-related disasters are key factors driving this increase.
Northeast noted that 2024 saw record losses, with over $8 billion paid out across Canada due to severe weather. The number of personal property claims rose by 115% in 2024, and there has been a 485% increase in the cost of repairing or replacing personal properties affected by severe weather since 2019. The Insurance Bureau of Canada reported that 2024 was the costliest year on record for severe weather-related losses, exceeding the previous record of $6 billion set in 2016.
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 can be beneficial, as it may impact the handling of claims.
Northeast and Khela recommended discussing potential discounts with insurance brokers. Homeowners who are claim-free may be eligible for discounts, and some insurers offer discounts based on age or other factors. Reviewing home upgrades, such as plumbing or roofing, with brokers can also lead to better rates. A soft credit check is another option that can result in substantial savings, up to $600 in some cases.
The insurance industry is also exploring discounts for FireSmarting properties, although this is not yet widely available. 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 homeowners to prepare by documenting their properties and contents, suggesting that they take photographs and store them on a portable USB drive.
In summary, Shuswap property owners are experiencing significant increases in home insurance costs due to climate-related factors and inflation. While there are strategies to mitigate these costs, such as seeking discounts and carefully reviewing insurance policies, the importance of adequate coverage cannot be overstated.
