Climate change is increasing the frequency and severity of extreme weather events in British Columbia, making it more important than ever to ensure your home and business are adequately insured. Rising risks like wildfires, floods, and windstorms are impacting insurance costs and availability.
How Climate Change is Impacting Insurance Costs & Coverage
Increased Premiums
With more frequent and severe climate-related events, insurance costs are rising to reflect the heightened risk. BC homeowners in high-risk zones may see higher premiums or stricter policy terms.
Stricter Policy Exclusions
Some insurers are tightening exclusions, particularly for flood-prone areas or wildfire-prone regions. Ensuring you have the right endorsements is essential.
Types of Insurance to Protect Against Climate Change Risks
Overland Flood Insurance
This coverage protects against water damage caused by excessive rainfall, river overflow, or coastal surges. Standard home insurance does not include overland flood protection.
Wildfire Insurance
With BC’s wildfire season becoming more intense, it’s crucial to ensure your home insurance includes coverage for fire damage, particularly in rural or forest-adjacent areas.
Earthquake Insurance
Seismic risks in BC make earthquake insurance an important add-on. A standard home insurance policy does not cover earthquake damage unless specifically included.
Business Interruption Insurance
Businesses impacted by climate-related disasters may face extended closures. Business interruption insurance can help replace lost income and cover operational costs during disruptions.
Government & Industry Response to Climate Change Risks
- Government Disaster Assistance: Federal and provincial programs may offer relief in large-scale disasters, but they rarely cover all damages.
- Resilience Initiatives: Insurers and municipalities are promoting climate-resilient building practices to mitigate future risks.
How Homeowners & Businesses Can Reduce Risk
- Strengthen Buildings: Upgrade to fire-resistant materials and flood barriers.
- Improve Drainage & Landscaping: Reduce flood risks with proper grading and stormwater management.
- Regularly Review Policies: Climate risks evolve; ensure your insurance coverage keeps pace.
Climate change is making comprehensive insurance coverage more important than ever. Contact a Park Insurance broker today to discuss climate-related insurance options tailored to your property or business.
