Insured losses from Jasper wildfire surpass $880M according to Insurance Bureau of Canada

The sudden and intense wildfire, which began on July 22, damaged or destroyed a third of the community, making it the second most expensive wildfire in Alberta’s history in insured losses.

“For thousands of residents in Jasper, this has been a time of hardship and heartbreak—homes and businesses lost, lives uprooted and an iconic community forever changed,” says Aaron Sutherland, vice president, Pacific and Western, Insurance Bureau of Canada (IBC). “Alberta’s insurers have been on the ground assisting customers with financial support and beginning the recovery process. Rebuilding will take time, and our industry will support the community every step of the way.”

Given Jasper’s unique location in a federal park, multiple levels of government are overseeing recovery efforts. IBC is calling on all orders of government to adopt an expedited and coordinated approach to decision-making to ensure reconstruction efforts can begin as quickly as possible.

“In an era in which flooding, heatwaves and wildfires are increasingly common and severe, we have learned the importance of safely returning people to their homes and communities as soon as possible after disaster strikes,” says Craig Stewart, vice president, climate change and federal issues, IBC. “In the coming months, as rebuilding efforts get underway, it will be important that all orders of government work together to establish a clear, effective and efficient decision-making process to ensure consistent progress. Every resident of Jasper must clearly understand the plan to rebuild or repair their homes and businesses as soon as possible. This will ensure the successful renewal of a community that has a special place in the hearts of people across our country and around the world.”

The Jasper Wildfire Complex was one of several major catastrophic events that occurred across the country during a six-week period this summer. Canada’s insurers have also been supporting customers affected by the Calgary hailstorm on August 5, as well as those who experienced major flooding in Ontario and Quebec in July and August. These events have placed immense pressure on insurance adjusters, who are critical following natural catastrophes, as they ensure the industry can support consumers as quickly as possible. IBC and its members are working with governments and regulators to address adjuster capacity across the country, and to help communities adopt strategies to build resilience and mitigate damage from future wildfires.

“Following the devastating wildfire in Fort McMurray, Alberta, in 2016, the municipality did an excellent job undertaking important fire resiliency efforts, with a particular emphasis on reducing home vulnerability through programs such as FireSmart,” adds Stewart. “Governments must invest in disaster mitigation, including rolling out similar programs to help communities fire- and flood-proof homes. These investments are critical in helping Canadians prepare for and recover from the impacts of wildfires and other natural catastrophes. As Canada embarks on one of the most ambitious housing plans in Canadian history, we must remember that the most expensive house is the one you have to build twice.”

Wildfire damage is covered by all home and business property insurance policies. Residents who have been affected by the Jasper wildfire or who have questions about their coverage should call their insurance representatives, who are able to support consumers with recovery and reconstruction efforts. Anyone with general insurance questions can contact IBC’s Information Centre at 1-844-2ask-IBC.

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