Last weekend in B.C.’s Kelowna region, the air was still strong with wildfire smoke after a summer of seemingly endless fires, including the fire that destroyed nearly 200 homes in West Kelowna.
Craig Stewart, who is the vice-president of climate change and federal issues for the Insurance Bureau of Canada, the association for property, automobiles and business insurance, Stewart said insurance premiums have gone up on average 5 to 10 per cent in the last year, according to Statistics Canada figures. That’s the biggest bump he’s seen in premiums for property insurance. And we can blame that on climate change, he says.
Insurers are extremely concerned about the potential for an earthquake disaster in B.C., says Mr. Stewart. That, combined with higher reinsurer premiums are largely the reasons behind increased premiums in the Lower Mainland. “When you add rebuilding to the mix, it can be very expensive to rebuild a home, in the present labour market,” said Mr. Stewart.
“But with things climate-related, history has shown people prefer to kick the can as far down the road [as possible],” he adds. “It used to be that insurance was a line item in a pro forma, but it wasn’t a major cost. But just as property taxes [have increased], now we have property insurance adding significantly to the cost.”
“When consumers start asking questions like, ‘Is my home elevated?’ and ‘Is my home ember resistant?’ I think then there will be more motivation for home builders and others in the real estate pipeline to design for that consumer demand.
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