CAMPBELL RIVER, B.C- No home insurance could be sold in the Campbell River area while the recent wildfire was burning.
Related: Wildfire Update
The wildfire, which was burning since Wednesday near the Quinsam Coal Corporation, was within 50 km of the city.
“All insurers watch to see what the risks are in your area, and if we have a fire that is within 50 km of the risk area (Campbell River), then there is a restriction on binding,” said Barbara O-Shea, branch manager at Hub International Barton Insurance in Campbell River.
“So they will not let you put a new policy in place.”
O’Shea said nothing changes for those with an existing policy, however during a high risk period, a homeowner cannot add extra coverage.
“We would be waiting on bated breath, we’d be asking our underwriters and calling every few hours to see when we could, but it’s ultimately up to them.”
Underwriters evaluate the risk of insuring a home to determine if it’s profitable for the insurance company to take the chance.
She said that homeowners who just bought a home but had not yet purchased insurance would be in a tight spot.
“If you went out and you just bought a brand new home and your closing date was today – if you hadn’t put insurance in place prior to that, we wouldn’t be able to provide coverage for you.”
“It’s not a nice place to be in, because you have no control over that. But we don’t have any control of that either,” added O-Shea.
O’Shea said that the restrictions on binding are up to a number of factors, including fire size and wind, and that underwriters have to decide whether or not the risk of loss is too high.
