As multiple wildfires threatened communities in Atlantic Canada, with most recently near Miramichi and Moncton in New Brunswick, and Conception Bay South and Paradise in Newfoundland and Labrador, the Insurance Bureau of Canada issued guidance for residents on navigating insurance coverage during evacuations and property loss.
Amanda Dean, vice-president for Ontario and Atlantic at IBC, said insurers were ready to assist.
Amanda Dean was recognized as one of the Women Leaders in Insurance in Canada. Read the Elite Women special report here.
“If you are evacuated, be prepared to be away from home for more than just a day or two, and be sure to keep all receipts related to your evacuation expenses,” she said, adding that safety should remain the top priority.
Home insurance policies generally cover fire damage, even if it originates on a neighbouring property, provided the policyholder did not cause the fire intentionally. Most policies also include additional living expenses (ALE) if residents are ordered to leave by civil or provincial authorities. ALE coverage reimburses reasonable costs for a set period, with limits depending on the policy. IBC advised residents to check with their insurance representative to confirm their entitlements.
The IBC also advised residents to only re-enter their homes when it is safe. Damage should be documented with photos where possible, and policyholders should contact their insurer promptly to discuss coverage, deductibles, and whether professional cleanup is needed, the IBC said.
Meanwhile, businesses with property damage may be covered for lost earnings if they have business interruption insurance as an add-on to their commercial property policy.
Beyond the immediate claims, the string of recent wildfire events adds to an already challenging risk environment for Canadian insurers. Large-scale wildfire losses in recent years have led to higher claims costs, greater reinsurance expenses, and heightened scrutiny of underwriting in high-risk areas.
Industry analysts warn that sustained loss activity could push insurers to reprice coverage, reassess limits, and tighten underwriting guidelines for properties in wildfire-prone zones, particularly in rural and forest-adjacent communities.
IBC urged policyholders to contact insurers as soon as possible, using 24-hour claims lines where available; list damaged or destroyed items and provide receipts, photos, or warranties; and keep all receipts for cleanup and living expenses. Seasonal or secondary property owners should also inspect their properties when safe and report any damage promptly, noting that coverage may differ from primary residence policies.
