Insurance costs for wildfire claims in Fort McMurray are already estimated to be around $3.58 billion, making this wildfire the costliest so far in the history of Canada. 2,400 buildings were destroyed and thousands of people were displaced because of the wildfire, not to mention the evacuation of the entire area. A recent Insurance Bureau of Canada report gives this amount, and the report includes initial disaster estimates based on insurer surveys collected so far. Insurance Bureau of Canada vice-president Bill Adams explained “While this event is largely an insured one, the numbers fall well short of measuring the real tragedy of this wildfire – one that has taken an immense toll on thousands of individuals and families.” According to Adams the recent wildfire was one of the “most horrific and damaging natural disasters in Canadian history.”
The insurance costs for Fort McMurray wildfire claims are enormous, but what does this mean for policyholders and those who buy insurance in the near future? Will rates skyrocket because of the huge losses that insurance companies are facing because of the wildfire damage and claims? While the cost to insurance companies will be massive what happens to those who lost everything and had no insurance to cover these losses? Many in Fort McMurray are now facing this harsh reality. These costs are also probably in the millions or more, but individuals will have to cover these expenses on their own. There are programs and hotlines that can be used for those who have nothing left and who did not have insurance to cover their losses.