July 6, 2017 by Canadian Underwriter
Canadians evacuated from their homes because of wildfires can expect to suffer an average of $11,300 in financial losses, a recent study from Square One Insurance Services Inc. has found.
Those with home insurance can recover most, but not all, of the financial loss, Square One said in a press release on Thursday.
There have already been 1,700 wildfires across Canada during the first six months of 2017, the company reported. The province with the most wildfires is Alberta, accounting for 37% of the national total, followed by British Columbia with 16% and Quebec with 8%.
“There’s a lot of information available on wildfire prevention and preparedness,” said Square One president Daniel Mirkovic in the release. “But, there’s surprisingly very little information on what financial losses people suffer from wildfires. That’s why we’ve decided to share our findings from the Fort McMurray wildfire in 2016.”
The internal study was completed on June 30.
Residents who were affected by wildfires generally fall into two categories. The first includes those who suffered direct fire loss to their homes and belongings; the second includes those who suffered indirect fire loss, like smoke or ash damage, to their homes and belongings.
In reviewing the Fort McMurray wildfire, Square One found the following:
“And, it’s important to note that claims processing times during natural disasters can vary,” the release added. “That means you will likely still be in the claims process even after the mandatory evacuation order has been lifted and you’re allowed to return home.”
Square One pointed to the FireSmart program for steps in helping to prepare the home and its surrounding area against wildfire damage. The first step is to create a protection zone around the home, the release said. If possible, ensure the area within 10 metres of the home is free of trees, flammable vegetation and other combustibles including woodpiles or garbage. Removing tree branches that are up to two metres from the ground will help stop wildfires from reaching the tree tops, the release added. If possible, try to keep the tops of the trees on the property at least three meters away from each other. If the fire reaches the top of the trees, the distance between them may stop the fire from spreading. FireSmart also “highly recommends” keeping grass mowed short and well-watered, Square One noted.
Another step is to use fireproof materials in the construction of the home. This could include fire-resistant roofing and siding materials, tempered glass windows and a spark arrestor on the chimney. Taking these steps may even reduce your home insurance rate, Square One said.
With wildfires occurring more often, the insurance company also explained what should be done during the alert period and the actual evacuation:
Established in 2011, Square One offers the “only home insurance policy in North America that can be personalized to your unique needs,” the release said. Square One is also one of the few providers to automatically include sewer backup and broad water protection in its policies. The company currently serves British Columbia, Alberta, Saskatchewan, Manitoba, Ontario and Arizona.
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