Rising Home Insurance Costs in Shuswap
Residents of Shuswap are bracing for a significant increase in their home insurance premiums, with an average rise of about 25 per cent. According to Randi Northeast, director of wealth and insurance at SASCU, the surge is largely attributed to costly climate-related disasters and inflation. The value of personal property within homes has also increased, affecting both home and tenant insurance rates.
Northeast highlighted that 2024 saw a record loss of over $8 billion in insurance payouts across Canada due to severe weather events. This represents a significant increase in claims, with a 115 per cent rise in personal property claims and a 485 per cent increase in the cost of repairing or replacing damaged properties 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. Northeast warned that while shopping around for cheaper insurance might seem appealing, it could result in inadequate coverage when a claim is made.
“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,” Northeast cautioned. SASCU assistant manager Brenda Khela suggested that maintaining a long-term relationship with an insurer could be beneficial, as it may impact the handling of claims.
Khela and Northeast recommended that homeowners consult with their insurance brokers to explore potential discounts. These could include claim-free discounts, age-related discounts, and discounts for home upgrades such as new plumbing or roofing. A soft credit check was also mentioned as a possible way to reduce premiums, potentially saving up to $600.
The insurance industry is also considering introducing discounts for FireSmarting properties, although this is not yet available. Northeast noted that homes in certain areas, particularly those prone to wildfires or floods, may face challenges in securing affordable insurance.
To prepare for potential disasters, Northeast advised homeowners to document their property and possessions by taking photographs or videos and storing them on a portable USB drive. This can be invaluable in the event of an evacuation or when filing a claim.
In summary, Shuswap residents are facing higher home insurance costs due to climate-related factors and increased property values. While there are strategies to mitigate these costs, such as seeking discounts and maintaining a good relationship with insurers, the overall trend suggests that insurance premiums will continue to be affected by environmental factors.
