Forest fires are a growing concern in many areas of Canada, particularly in Alberta, British Columbia, Quebec, and Ontario. If you live in an at-risk area, it’s important to ensure you have home insurance with the right coverage.

Even though wildfires only affect a small number of homes each year, they can spread quickly and unpredictably. Having the right protection in place gives you peace of mind if the unexpected happens.

This article will walk you through what forest fire insurance typically covers for home, tenant, condo, and car policies, so you have a general idea of what to expect. You can also use this information to review your current policies and make any necessary changes before disaster strikes and coverage is actually needed.

Does insurance cover forest and wildfires in Canada?

Yes, in Canada, home and car insurance can provide coverage for damage caused by forest fires and wildfires. However, eligibility for financial reimbursement depends on specific conditions, coverage limits, and policy requirements. These factors can vary based on the type of insurance you have.

Here’s a brief overview of how homeowners, tenant, condo, and car insurance address forest and wildfire damage. 

Homeowners insurance

Homeowners’ insurance policies typically cover wildfires, including repairs to your home, replacing belongings, and additional living expenses if you need to relocate. Just remember, coverage for additional living expenses only applies to what you spend above your usual budget. So if you spend $400 a week on food while away from your home, but normally spend $100, you could claim the extra $300. 

Even if the wildfire doesn’t directly damage your home, you might still qualify for some coverage. For example, if a power outage causes all the food in your fridge or freezer to spoil, you could be reimbursed for that loss. 

Tenant insurance

In Canada, tenant insurance typically includes coverage for forest and wildfires. This means if you need to temporarily relocate or if your belongings, such as clothing, furniture, or electronics, are lost or damaged in the fire and need to be replaced, your policy can help cover those costs.

Just remember, your landlord’s insurance is not a substitute for your own. While your landlord’s insurance covers the building itself, its fixtures, and the appliances or furniture owned by your landlord, if you don’t have tenant insurance, it will be up to you to pay for any relocation costs or to replace your personal belongings out of your own pocket.

Condo insurance

Condo insurance policies in Canada typically include coverage for forest and wildfires. If your unit is damaged in a wildfire or if you’re forced to leave it due to fire-related damage, your insurance may compensate you for the repairs to the interior of your unit, the replacement of your belongings, and the additional living expenses if you need to temporarily relocate, up to a certain amount. 

It’s important to know that your condo corporation’s insurance only covers the building’s structure, shared areas (like hallways and amenities), and sometimes the original fixtures in your unit. It doesn’t cover your personal items or the interior of your unit, so make sure you have your own condo insurance. 

Car insurance

Car insurance typically covers damage from forest fires, but only if you have comprehensive coverage or all-perils coverage. Since this type of coverage isn’t included by default, you’ll need to select it when you buy your policy to be eligible. Otherwise, if you only have basic or liability-only insurance, wildfire damage to your vehicle won’t be covered. 

What are the conditions for fire insurance?

Coverage for wildfire or forest fire damage includes specific terms, conditions, and exclusions. Review your policy details closely and ask questions if anything is unclear. Knowing what’s covered can help you avoid surprises if you ever need to file a claim. 

Here are some common conditions and considerations related to wildfire insurance coverage:

Evacuation-related losses: Some policies may cover spoiled food or evacuation expenses, but these vary, so check your policy. 

Vehicles: Wildfire damage to your vehicle isn’t covered under your home or tenant insurance policy. It must be claimed through your car insurance, and only if you have comprehensive or all-perils coverage. 

Negligence: If your actions caused a fire to spread (like illegal burning or not following local fire bans), your claim could be denied. 

Business activities: If wildfire-related damage affects parts of your home used for business, it might not be covered unless your policy includes specific business coverage. 

How does filing a claim for forest fire damage work?

If the worst happens and you experience damage caused by a forest fire, you’ll need to file an insurance claim to get reimbursed. But before you do, it’s a good idea to check whether the cost of the damage is higher than your deductible. If the loss is small, it might not be worth claiming, as it could lead to higher premiums down the road. 

If you decide it’s worth it, here’s how to make an insurance claim for forest fire damage: 

• Report the loss: Contact your insurance provider as soon as it’s safe to do so to report the damage and provide all necessary details. The sooner you contact them, the faster the process can begin.
• Review your policy: Look over your insurance policy to understand what’s covered and what isn’t, including deductibles, coverage limits, and any exclusions.
• Document the damage: Take clear photos and videos of all affected areas and belongings to support your claim. The more detailed, the better. 
• Make a list of damaged items: Create an inventory of all damaged or destroyed items, including purchase dates and estimated values. If you have them, provide receipts. 
• Keep receipts for temporary spending: If you need to evacuate, keep all receipts for meals, clothing, hotels, and other additional living expenses so that you can be reimbursed. 
• Meet with your insurance adjuster: Your insurance company may send an adjuster to visit your home to see the damage firsthand. They’ll evaluate the damage, verify your claim, and estimate compensation.  
• Pay your deductible: You’ll usually need to pay your deductible before receiving any compensation for the rest of your policy’s coverage limits. 
• Track all communication and follow up: Keep a record of conversations with your insurer, including names, dates, and what was discussed.
• Review your policy: Now that you’ve gone through the claims process, you can identify areas where you may not have had enough coverage. If needed, update your policy so you have what you need in the future. 

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