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 by about 25%. The surge is attributed to costly climate-related catastrophes and inflation. According to Randi Northeast, wealth and insurance director at SASCU, both home and tenant insurance have been affected, partly due to the increasing value of personal belongings.
The insurance industry has seen record losses, with over $8 billion paid out across Canada in 2024 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 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 cautions 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 it may impact the handling of claims, particularly in the first year.
Insurance brokers recommend reviewing policies with homeowners to identify potential discounts. These may include claim-free discounts, age-related discounts, and soft credit checks, which can result in substantial savings. Homeowners are also advised to update their insurers about any home improvements, such as plumbing or roofing upgrades.
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 may have to pay higher premiums. In extreme cases, insurers may not bind policies when there’s an active fire within 50 kilometers of a property.
To prepare for potential disasters, Northeast advises homeowners to document their properties and belongings by taking photos or videos and storing them on a portable USB drive. This can be helpful in the event of an evacuation or when filing a claim.
