Rising Home Insurance Costs in B.C.’s Shuswap Region
Homeowners in B.C.’s Shuswap region are facing a significant increase in home insurance costs, with average premiums jumping 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 major contributing factors.
Northeast noted that 2024 saw record losses, with over $8 billion paid out across Canada due to severe weather. This represents a significant increase in claims, with a 115% rise in personal property claims and a 485% increase in repair/replacement costs 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 this 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 loyalty can impact claim handling and potentially lead to better outcomes.
Insurance brokers recommend reviewing policies with homeowners to identify potential discounts. These may include claim-free discounts, age-related discounts, and updates to home improvements such as plumbing or roofing. A soft credit check can also make a substantial difference, potentially saving up to $600 on home insurance.
The insurance industry is also exploring new discount options, such as FireSmarting properties. However, homeowners in high-risk areas, such as those prone to wildfires or floods, may face challenges in accessing insurance or face higher premiums. Northeast advised homeowners to prepare by documenting their properties and contents, suggesting that they take photos or videos and store them on a portable USB drive.
As the region continues to grapple with the impact of climate change, homeowners are advised to stay informed about their insurance options and work closely with their brokers to ensure they have adequate coverage.
