Okanagan & Shuswap fires cause $720M in insured losses, highest in B.C. history

This summer’s wildfires in the Okanagan and Shuswap are the most costly insured event ever in British Columbia, and the tenth costliest in Canadian history.

The Insurance Bureau of Canada said the McDougall Creek fire in West Kelowna and the Bush Creek East fire in the Shuswap have resulted in over $720 million in insured losses, according to initial estimates from catastrophe indices and Quantification Inc.

Top 10 natural disasters for insurance payouts in Canada (Image credit: CNW Group/Insurance Bureau of Canada)

Aaron Sutherland, vice-president, Pacific and Western, Insurance Bureau of Canada (IBC) said this year’s wildfire season has broken all records in terms of the amount of land burned and damage caused to homes and businesses in B.C.

“Our hearts go out to every individual and family who has been impacted by these wildfires, and to the firefighters who lost their lives helping to protect our communities. The wildfires’ impact is another tragic reminder of the risk BC residents face due to climate change and the increasing frequency of natural catastrophes,” Sutherland said.

The combined, insured losses from the Bush Creek East and McDougall Creek fires far exceed the cost of the last major wildfire in Okanagan Mountain Park near Kelowna in 2003. That fire 20 years ago resulted in $200 million in insured damage.

“Canada’s insurers are here to help their customers rebuild following this devastating loss,” added Sutherland. “Wildfire damage is covered by all standard home and business insurance policies, and anyone who has been affected by these events or has questions about their coverage should call their insurance representative. Anyone with general insurance questions can also contact IBC’s Consumer Information Centre at 1-844-2ask-IBC.”

The McDougall Creek, Clark Creek and Walroy Lake wildfires started in the central Okanagan Valley in mid-August. Due to hot, dry and windy conditions, the three fires spread quickly, prompting widespread evacuations on both sides of Okanagan Lake. Structural damage was reported in the communities of West Kelowna, Kelowna and Lake Country, and many properties were completely destroyed.

In West Kelowna, officials confirmed that 70 homes were affected by the wildfires, and 20 were lost in Westbank First Nation. In Kelowna, three homes and two outbuildings were completely destroyed, with a further three being destroyed in Lake Country. In the areas of Traders Cove and Lake Okanagan Resort, an estimated 100 structures were completely destroyed. The Lake Okanagan Resort was also destroyed.

The Bush Creek East wildfire started in mid-July in the Shuswap region, and spread rapidly in early and mid-August, racing through communities such as Scotch Creek and Celista.

More than 270 structures were destroyed, and there was also extensive damage to public infrastructure, such as hydro poles.

The amount of insured damage is an estimate provided by CatIQ (www.CatIQ.com) under licence to IBC.