Insurers and claimants under strain as weather-related disasters mount in B.C.

Arctic outflow winds that swept across Western Canada in mid-January led to long wait times for those who needed pipe repairs and set a new record for energy usage in B.C., as people cranked up the heat.

It also led to more than $180 million in insured damages in B.C., Alberta and Saskatchewan, according to estimates from the Insurance Bureau of Canada (IBC).

B.C. incurred a lion's share of that amount, racking up about $140 million in insured damages, according to Rob de Pruis, the bureau's national director of consumer and industry relations.

He said 70 per cent of insurance claims related to the cold snap were for personal property and damage caused by frozen and burst water pipes.

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"An extreme cold snap ... causing this much damage, that's pretty unusual," de Pruis told CBC's The Early Edition. 

Temperatures plunged below –45 C in some parts of B.C., breaking a number of weather records between Jan. 11 and 15.

It is the latest in a series of severe weather events over the last few years, which has underscored concerns about the growing economic cost of weather-related disasters — and the rising cost of insurance coverage for insurers and taxpayers, de Pruis said.

Between 2001 and 2010, Canadian insurers averaged $675 million a year in losses related to severe weather, but now exceed $2 billion annually, according to IBC.

In 2023, insured damages from severe weather exceeded $3.1 billion nationally, making it the fourth most expensive year on record.

Among these events, the wildfires in B.C.'s Shuswap and Okanagan regions stood out as the most expensive, accounting for a combined total of $720 million.

"We're not only seeing more of these events, but they're more severe and we are seeing homes and businesses being impacted significantly," de Pruis said. 

Fire damage, including damage from wildfires, is covered under most home insurance policies, according to IBC.

Likewise, if a vehicle has been damaged by fire, flood or weather, customers are covered by optional insurance coverages – comprehensive or specified perils –  according to the Insurance Corporation of British Columbia (ICBC).