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In preparation for the upcoming wildfire season, the Insurance Bureau of Canada (IBC) has joined forces with the British Columbia Real Estate Association (BCREA) to remind home buyers in BC to secure insurance for their properties.
Both organizations are recommending that home buyers in the province include an insurance clause in their offers of purchase. They also suggest that buyers seek out insurance before a sale is completed. Individuals putting their homes up for sale have also been advised to not cancel their insurance until after the transaction closes.
“Home insurance is for unforeseen risks, and it may be more difficult to obtain when a wildfire is threatening your residence or community,” said IBC Pacific vice-president Aaron Sutherland in a statement. “That’s why we are reminding British Columbians to ensure they are protected year-round and not simply when their home is threatened.”
“When a community is threatened by an active wildfire, it may be more difficult to secure home insurance, which can greatly hinder the sales process,” added BCREA CEO Darlene Hyde.
Hyde also mentioned that adding an insurance clause to an offer of purchase is something REALTORS can help buyers with.
IBC has warned that while home insurance is readily available across British Columbia, it may be more difficult to obtain coverage while an active wildfire threatens a nearby community – at least until the fire is contained. Homeowners at risk of wildfire are encouraged to purchase insurance as a precaution.
The bureau also noted that insurers typically renew home insurance policies when a wildfire is threatening a home or community; this means existing customers will have coverage despite the increased risk to their properties.
