Wildfire Season Stress: Insurance Brokers Face Harsh Realities in B.C.

Strategic Insights -

Insurance broker Hannah Rolston of Kootenay Insurance shared her experience of dealing with phone calls from clients who lost their homes, businesses, and everything in one day due to wildfires. The calls were emotionally draining, and Rolston remembers a client who came in with all her belongings in a garbage bag, stating she was sleeping on a couch with her two-year-old after being evacuated. The situation is particularly stressful for insurance brokers, who have to explain complex policies and coverage to clients. With no wildfire insurance available, residents in wildfire areas or those interested in buying properties may not know how insurance works during wildfire season in B.C.

Key Takeaways:

  • Insurance broker Hannah Rolston experienced stress and emotional overwhelm while dealing with phone calls from clients affected by wildfires in 2024.
  • Clients who lost their homes and businesses due to wildfires often called Rolston for assistance, highlighting the need for clear communication about insurance policies and coverage.
  • There is no wildfire-specific insurance, and homeowners in wildfire-prone areas are typically covered under general home insurance policies that account for wildfire damage.
  • Insurance companies consider factors such as wildfire proximity and home features (e.g., flammable materials like cedar or vinyl siding) when determining premiums.
  • The number and severity of wildfire damage claims are increasing due to longer and more severe fire seasons, putting pressure on premiums and the insurance industry.
  • Adam Sutherland from the Insurance Bureau of Canada emphasized the need for residents to take steps to protect their properties and communities from wildfires, including using non-combustible materials on homes and interface fire zones.
  • Climate change is a top concern for insurance companies, which are incorporating climate models into their rating systems to anticipate and prepare for increased wildfire risks.
  • Some insurance companies are taking proactive measures, such as partnering with Wildfire Defense Systems to provide loss prevention and fire suppression services for threatend homes.
  • Hannah Rolston highlighted the importance of seeking independent, professional advice when buying insurance online to avoid potential issues with claims.

Statistics:

  • $8 billion: Insured damage in 2024 caused by extreme weather events nationwide, exceeding the previous record of $6 billion in 2016.
  • 5.8%: Average home insurance premium increase in 2025 due to recent disasters.
  • $3 billion: Insured losses from the August hailstorm in Calgary in 2024, making it the single most destructive weather event of the year.
  • 50 kilometers (25 kilometers on a case-by-case basis): The distance within which most insurance companies won't provide home insurance if there is an active wildfire.
  • 2019: The year the City of Nelson changed its building bylaws to require new home construction to limit coniferous landscaping and prohibit certain building materials.

Sources:

  • Insurance Bureau of Canada (IBC)
  • Nelson Star, 2025
  • Hannah Rolston, Kootenay Insurance
  • Adam Sutherland, IBC spokesperson
  • Wildfire Defense Systems