Does Home Insurance Cover Wildfire Damage? Here’s What You Need to Know
As parts of Canada continue to battle devastating wildfires, many homeowners are concerned about whether their insurance policies will cover the damage caused by these natural disasters. So, does home insurance cover wildfire damage and the resulting smoke? Let’s explore what Canadians need to know.
The good news is that all standard home insurance policies, including tenant insurance and condo insurance, do cover damage caused by wildfires and smoke. Regardless of the cause of the fire, as long as it wasn’t intentionally started by the policyholder, you will be protected.
Home insurance not only covers damage to the structure and contents of your home but also extends coverage for additional living expenses that may arise due to relocation. These expenses can include accommodations, food, and fuel costs. However, it’s crucial to note that coverage for additional living expenses only applies to costs that exceed your normal spending. For instance, if you normally spend $100 per week on groceries and end up spending $500 per week eating out while displaced from your home, you can claim $400 in additional living expenses.
Even if you’re indirectly affected by a wildfire, you may still be eligible for coverage. For example, if a power outage occurs, causing the food in your refrigerator or freezer to spoil, you may be compensated for the loss.
Before making a claim, especially for relatively minor losses like spoiled food, consider the impact it may have on your future insurance premiums. Making frequent claims can result in higher premiums down the line. In such cases, it might be advisable to bear the cost of smaller losses out of pocket.
When it comes to auto insurance, coverage for fire damage is not automatically included. Only comprehensive or all perils auto insurance policies provide coverage against fire damage. Therefore, it’s important to review your policy details to determine if you have this optional coverage.
If you currently reside in an area affected by wildfires and do not have home insurance, obtaining coverage at this time may prove challenging. Insurance companies may temporarily limit the sale of new policies in areas with imminent threats, making it unlikely for you to secure coverage. Additionally, during a state of emergency declared by the local government, insurers may extend your existing coverage for up to 120 days beyond the expiration date, acknowledging the difficulties posed by the crisis.
In conclusion, it’s crucial for Canadians to understand that their home insurance does cover damage caused by wildfires and smoke, along with additional living expenses in case of relocation. However, it’s important to be aware of the impact frequent claims can have on insurance premiums. Furthermore, auto insurance policies may not automatically cover fire damage, so it’s vital to review your policy to ensure you have the necessary coverage.
As wildfires continue to ravage parts of Canada, it is essential for homeowners to take proactive measures by reviewing their insurance policies and understanding the extent of coverage provided. Stay safe and protected during this challenging time.
