Insurance Act amendments proposed in B.C. and Alberta fall short on fire-following-earthquake coverage

Proposed amendments to Alberta’s and British Columbia’s insurance acts lack certainty and clarity with regard to fire-following earthquake coverage, Insurance Bureau of Canada (IBC) says.
Both governments jointly introduced harmonized amendments to their insurance acts. A joint release between the two governments outlines some of the key elements of the legislation. They include:
clarifying and lengthening (from one to two years) the limitation period in which legal claims against insurance companies must be made;
improving dispute resolution and complaint-handling processes;
giving both provinces the flexibility to deal with fire coverage exclusions through regulation;
protecting an “innocent co-insured” who may otherwise be denied coverage due to the wrongdoing of another;
facilitating the use of modern distribution channels such as electronic commerce; and
allowing consumers greater access to documents they may need from the insurer at the time of a claim.
As it stands now, any legislative changes allowing insurers to offer a clear and unambiguous earthquake insurance product would have to be allowed by regulations, leaving homeowners vulnerable, an IBC release says.
“We will continue to work with the government to ensure these regulations provide clarity for consumers, not only at the time of sale, but also as claims are settled,” the IBC says.