In recent years, Canada has experienced some of the most destructive wildfire seasons in its history across many provinces. In 2023, more than 16.5 million hectares burned, making it the worst wildfire season on record. Similarly, in 2024, according to the Catastrophe Indices and Quantification Inc. (CatIQ), the record was broken for the costliest year for severe weather-related losses, reaching $8.5 billion.
With weather-related disasters on the rise, you may be wondering whether your insurance policies cover wildfire damage. The answer is, typically yes, across home, renters and auto insurance, but only if you have the right coverage in place. Let’s break it down.
Key Points
- Wildfire coverage is normally included in standard home, renters and comprehensive auto insurance in Canada.
- Your location and property design can affect premiums or eligibility, especially in wildfire-prone areas.
- Government help is available, but it’s designed as a supplement, not a replacement, for home insurance.
Does Insurance Cover Wildfires?
Yes, in most cases, your insurance policy should cover damage caused by wildfires in Canada.
Whether you’re talking about home insurance, tenant’s insurance or vehicle insurance, wildfire protection is typically included as part of standard policies, although of course, there may be some exceptions. What’s covered depends on your policy type, your coverage limits and whether you’ve opted for additional protection.
Let’s take a closer look.
Does Home Insurance Cover Wildfires?
Most standard home insurance policies in Canada cover fire damage, which includes damage from wildfires. This typically falls under the “fire or smoke damage” portion of your policy, and in most cases, you won’t need a special add-on. That said, exact coverage can vary based on your provider, where you live and any exclusions that might be outlined in the fine print.
If your home is damaged or destroyed by wildfire, here’s what’s generally covered:
- Dwelling structure: Your insurer will help cover the cost to repair or rebuild your home.
- Personal belongings: Items inside your home, such as furniture, electronics and clothing, are usually covered, up to the policy’s personal property limit.
- Additional living expenses (ALE): If you’re forced to evacuate or your home becomes uninhabitable, most policies include at least some coverage for temporary accommodations, meals and other living costs.
| Note: Keep in mind that insurers may restrict coverage in high-risk wildfire zones, or even place limits during active wildfire seasons. |
Learn more: How To File A Home Insurance Claim In Canada
Does Renters’ Insurance Cover Wildfires?
Yes, most renters’ insurance policies will also cover wildfire damage. If the building you live in is damaged by fire, your landlord’s insurance should cover the structure and building itself, but it’s your renters’ insurance that protects your personal property and relocation costs.
Here’s what’s typically covered:
- Personal belongings: Your clothing, furniture, electronics and other valuables are covered against fire and smoke damage.
- Additional living expenses (ALE): If your rental unit is uninhabitable, your policy may cover temporary housing, meals and essential living expenses while repairs are underway.
| Note: If you rent and don’t yet have coverage, renters’ insurance is an affordable way to protect yourself from wildfire losses, and it often costs less than a dollar a day. |
Does Car Insurance Cover Wildfires?
Yes, but usually you’ll need comprehensive coverage as part of your auto insurance policy to be covered by wildfire. That’s because this type of coverage is optional in Canada, so if you only carry the minimum required liability insurance, you won’t be protected against fire damage.
If you do have comprehensive coverage, here’s what’s usually included:
- Vehicle damage: If your car is damaged or destroyed by wildfire, your insurer may cover repair or replacement costs.
- Personal belongings: Some policies may also cover valuables inside the car at the time of the fire, though limits can apply.
- Rental car coverage: If your vehicle is out of commission due to fire damage, your insurer may cover the cost of a rental car during repairs, provided you’ve added rental vehicle coverage to your policy.
Can You Get Wildfire Coverage In High-Risk Areas?
If you live in a wildfire-prone region, such as a community near forests or open grasslands, your insurance may come with higher premiums, stricter terms or added risk requirements.
Higher Premiums and Stricter Underwriting
While wildfire damage is typically included in standard home insurance policies, insurers often assess additional risk factors for properties in high-risk zones. If you’re in an area with frequent wildfire activity, your insurer may:
- Charge higher premiums
- Set higher deductibles for fire-related claims
- Impose wildfire mitigation requirements
- In rare cases, decline coverage or choose not to renew your policy
These practices often reflect growing concerns in the insurance industry. According to the Catastrophe Indices and Quantification Inc. (CatIQ), insured losses from wildfires have increased dramatically in recent decades, with 2024 shattering the record for the most expensive insurance damages from weather-related events in one year.
Risk Mitigation Requirements
To qualify for or maintain insurance in wildfire-prone regions, you may be asked to implement risk reduction measures. These often include:
- Clearing brush, wood piles and other combustible materials around your home
- Installing fire-resistant roofing
- Maintaining defensible space zones as recommended by FireSmart Canada
These preventative steps can help reduce the risk of damage to your property from fire, and may improve your eligibility for coverage. If you live in a high-risk area, it’s worthwhile checking in with your insurer to clarify where your coverage lies and how to be proactive about fire safety.
Does The Government Offer Any Disaster Financial Assistance?
If your insurance doesn’t fully cover wildfire damage, or if you’re uninsured, you may be eligible for financial support through government disaster programs.
Canada’s disaster assistance framework operates through a partnership between federal and provincial governments. Provinces and territories are responsible for managing on-the-ground responses and offering financial assistance to residents. When the cost of a disaster exceeds their capacity, the federal government may step in through the Disaster Financial Assistance Arrangements (DFAA) program.
The DFAA is administered by Public Safety Canada and helps cover the costs of significant natural disasters, including wildfires. As stated on its website, the DFAA program does not provide funding directly to Canadians impacted by disasters.
Instead, it aims to help provinces and territories cover the costs associated with disaster recovery. The program does not replace private insurance, but is intended as a last resort for costs that are essential and uninsurable.
What DFAA Covers
Under DFAA, federal funds may be provided to support:
- Evacuation, shelter, and emergency response costs
- Repairs or replacement of essential property not typically covered by insurance
- Costs for restoring public infrastructure
Provincial Wildfire And Disaster Financial Support Programs
While the Federal government provides financial disaster support to provinces through the DFAA, provinces are expected to offer their own disaster relief assistance programs. Here’s a look at some of the provincial programs and resources available:
- Alberta: Hazard Assistance and Resilience Program
- British Columbia: Disaster Financial Assistance
- Manitoba: Wildfire Incidental Support Program
- Quebec: General Financial Assistance Program Regarding Disasters
- New Brunswick: Disaster Financial Assistance
- Nova Scotia: Department of Emergency Management
- Ontario: Disaster Recovery Assistance for Ontarians
- Saskatchewan: Provincial Disaster Assistance Program
Other Financial Resources
If wildfire damages leave you in urgent need of support, there are additional financial and community resources available beyond insurance and government assistance.
Emergency Loans
Some financial institutions and alternative lenders may offer emergency loans to cover short-term expenses such as:
- Temporary lodging (e.g., motels)
- Groceries or restaurant meals
- Clothing and hygiene products
- Transportation
These are typically unsecured personal loans, and interest rates vary depending on the lender and your credit profile. Use them cautiously, as they may not be the most affordable option, especially if you’re unsure how long your recovery period will last.
Visit 211.ca For Local Help
Visit 211.ca to search for a local aid and low-cost community programs. It’s available 24/7 and can help you find:
- Shelter if your home is unsafe or inaccessible
- Food banks and community kitchens
- Clothing donations and household essentials
- Counselling or mental health services for coping after a disaster
Nonprofits and Community Support
Local nonprofits, churches, and relief organizations often mobilize quickly after a natural disaster. Some offer direct support in the form of grocery cards, clothing drives, or financial assistance. If you’ve been evacuated, check with local reception centres, municipal websites, or social media pages for current relief efforts in your area.
Insurance Company Relief Programs
After major wildfire events, some insurers may be willing to offer premium deferrals, payment flexibility or other assistance to impacted customers. These programs aren’t always advertised widely, so it’s worth calling your provider directly to ask what’s available.
Alternative Provincial Emergency Assistance
In some provinces, short-term emergency aid resources are available for evacuees, even if provincial assistance doesn’t apply. For example:
- British Columbia Emergency Support Services can provide evacuees with vouchers for food, lodging and transportation during evacuations.
- Alberta’s Emergency Needs Allowance program offers immediate financial support for basic needs if you’re affected by a disaster.
Bottom Line
Wildfires are a growing threat across Canada, and while most standard insurance policies include wildfire protection, it’s essential to confirm the details with your provider before making any assumptions.
Coverage can vary based on your location, risk level and policy type. For added peace of mind, make sure your home, vehicle and personal belongings are properly insured, and if possible, consider taking proactive steps to protect your property. While federal and provincial assistance may be available for relief during and after major disasters, it’s no substitute for a strong insurance policy.
