As evacuation alerts were lifted in parts of B.C.'s Cariboo region following progress on the Smokey Lake wildfire, insurers warn that property risks remain elevated across fire-affected areas.
The Cariboo Regional District (CRD) and the Tŝilhqot’in National Government confirmed on Sept. 14 that an evacuation alert for the Tatla Fire Area South had been lifted. The alert, issued Sept. 5, had applied to more than 330 parcels and 165 structures. Alerts for the West Chilcotin Health Centre and Smokey Lake Fire Area 2 were also rescinded, while an evacuation order for the Smokey Lake Fire Area was downgraded to an alert, still covering 85 parcels of land.
The Smokey Lake fire, now measured at 7,913.9 hectares, has been reclassified as “being held,” indicating it is not expected to grow. But insurers note that even as orders ease, many properties remain at risk from secondary hazards such as falling trees, smoke damage and delayed access to essential services.
Industry experts said residents returning to affected areas should contact their insurance providers promptly to clarify coverage for wildfire-related losses. While standard home and commercial property policies in Canada typically cover fire and smoke damage, coverage for indirect impacts can vary.
The Insurance Bureau of Canada (IBC) has previously highlighted that wildfires are now one of the most costly natural perils facing Canadian insurers. The 2023 season produced record-breaking losses, and 2024 saw billions in additional claims. With 24 active fires still burning in the Cariboo Fire Centre, insurers remain on high alert. Eleven of these fires are classified as out of control, including the Itcha Lake blaze at more than 54,000 hectares.
Wildfire risk is also expected to drive higher claims costs this year, compounding pressures on an already strained property insurance market. Analysts warned that repeated catastrophic losses are pushing up reinsurance costs, which could lead to higher premiums and stricter underwriting in fire-prone regions.
Officials continue to encourage property owners to take mitigation measures, such as removing combustible materials near homes, installing fire-resistant roofing, and maintaining defensible space. Some insurers offer incentives for such resilience efforts, which could become more prominent if severe fire seasons persist.
