Shuswap residents may experience some sticker shock when renewing their home insurance.
Costly climate-related catastrophes and inflation have contributed to a spike in the cost of insuring one's home. On average, people are seeing an increase of about a 25 per cent, said SASCU wealth and insurance director Randi Northeast, adding the cost of tenant insurance has also risen, though not as dramatically.
Both are affected, in part, by the increasing value of the contents of one's home. Loss to climate related disasters is another factor behind the increase for homeowners.
Northeast noted 2024 saw record loss, with more than $8 billion paid out across the country "due to severe weather loss."
"The number of claims are going up for personal property, that’s a 115 per cent increase last year," said Northeast.
With that there's been, since 2019, a 485 per cent increase in the cost of repairing/replacing personal properties impacted by severe weather.
In January 2025, the Insurance Bureau of Canada (IBC) reported 2024 as being the costliest year for severe weather-related losses, shattering the previous record of $6 billion in 2016 following the Fort McMurray wildfires. Last July and August alone saw four catastrophic weather events "result in over $7 billion in insured losses, and more than a quarter of a million insurance claims – 50 per cent more than Canadian insurers typically receive in an entire year."
While one can "shop around" for cheaper insurance, Northeast cautioned it may not offer the same degree of coverage.
"As a brokerage we do have our sort of main market that we go to for home insurance," explained Northeast. "Our brokers do go to various markets to see any price differences and we try to align the price along with appropriate coverage. So when you’re shopping around, some of the places, like… online discounters, it can be dangerous because you might not be getting the coverage that you really need.
"You can get it cheaper; however, when you experience a loss you may be very surprised to find out what is and isn’t covered."
SASCU assistant manager Brenda Khela pointed out how it can be beneficial for homeowners to stick with the same insurer.
"People always just assume shop around right away – that isn’t always a good answer," said Khela. "First of all there’s the coverage, you don’t know if you’re getting the same, but second of all, when you are new with a company and you have a loss in the first year, they do things differently for you than someone that’s been with them five or 10 years.
"It’s based on stability and how long you’ve been with them. It actually can impact you more shopping around and having a different insurer every single year."
Khela and Northeast recommended talking to your insurance broker about possible discounts.
"If you’re claim free you can get a discount, and some companies based on your age will give you a discount," said Northeast, reminding homeowners they should review with their broker any changes/upgrades to their home, such as plumbing or roofing.
Another discount option for homeowners is a soft credit check.
"That one can make a substantial difference, like up to $600 on homes…," said Khela.
There have also been discussions in the insurance industry around a discount for FireSmarting your property, though this is not yet available.
Asked about the impact of recent wildfires in the Okanagan-Shuswap, Khela said owners of homes in certain areas of Kelowna may have difficulty accessing insurance.
"I have heard as well that more and more insurance companies are looking at the location and it might not even be wildfires, it could be floods – if you’re close to a flood plain…. the affordability is impacted, or maybe even the availability itself is impacted. If you are able to get it it’s going to be pricey," said Northeast, adding that most insurers will not bind a policy when there's an active fire burning within 50 kilometres of your home.
On the subject of wildfires and preparedness, along with making sure you have your insurance policy should you need to evacuate, Northeast advised photographing your home and its contents and keeping the images on a portable USB drive.
"It’s really helpful to take pictures or have footage," said Northeast.
