The Regional District of Okanagan-Similkameen (RDOS) is considering a bylaw that would allow it to recover fire response costs from insurance companies when local fire departments are called to house fires.
The proposal, presented at a recent board meeting, received its first three readings. It would apply only to residential structure fires and would not cover wildfires or outdoor fires.
According to RDOS chief administrative officer Jim Zaffino, the bylaw is intended to enable the district to recover eligible costs through homeowners’ or tenants’ insurance policies.
“The cost recovery would be filed against the insurance companies of homeowners or tenants where a fire takes place,” Zaffino told the board. “There are real expenses when responding to fires, and more fires increase the risk of fire departments going over budget.”
Under the proposal, a Vancouver-based firm would be contracted to manage the claims process, receiving 30 per cent of recovered funds as compensation. Zaffino said similar systems are already in place in other parts of Canada and that the RDOS would not be billing property owners directly.
The concept received support from several board members. Princeton Mayor Spencer Coyne, who also sits on the board, said he had advocated for such a policy in his community for several years. Director Matt Taylor voiced support but questioned how the policy would apply in cases where the property is not insured.
“If there’s no insurance, there’s no claim,” Zaffino responded.
He noted that fire departments are funded by residents through property taxes and said the provincial government should take steps to ensure insurance payments for fire services are directed back to local governments.
Zaffino said he had raised the issue at past Union of British Columbia Municipalities (UBCM) conferences but saw little progress. He said the RDOS, with about 20,000 residents and 10,000 properties, could still recover a meaningful amount under the proposed system and expressed interest in bringing the matter back to UBCM with support from other municipalities.
The formula used to calculate recoverable costs would be determined by insurance companies and the contracted adjuster, he said.
Not all directors agreed with the approach. Summerland Director Richard Barkwill questioned the involvement of a third-party firm.
“Why doesn’t the district just send a bill to the homeowner and the homeowner passes that bill onto the insurance company, just like many others?” Barkwill asked.
