Getting house insurance during the 2021 fire season in the Okanagan might have been a big challenge for many home buyers. Perhaps it comes as no surprise that most Canadian insurers are hesitant to provide new policies because of the perceived risk. If there is an uncontrolled fire within 25km of a property where you have an accepted offer, at the time of making a mortgage application, many insurance underwriters will not be forthcoming.
This has been a record-breaking year for wildfires in B.C. and not just in the far north. In fact, at the time of writing this, over 1000 fires have been identified in British Columbia since April 1, and hot days continue.
Generally speaking, insurers will only bind insurance policies 30 days before a house sale completes. They are watching the wildfire situation daily, as you are. Real estate agents must ensure that a buyer’s contract contains an insurance moratorium clause, providing an insurance grace period for the property. This will allow a buyer to extend the Completion date (if needed) on a deal if a fire is not controlled near the property.
Unsurprisingly, this can make buying and selling a home incredibly stressful in 2021. Nonetheless, there are options, and I can help by providing moratorium clauses and by assisting buyers to find alternative insurance providers. Online underwriters could very well be a good option here.
If you are considering a rural property, it’s even more important to choose a professional realtor with experience who understands the necessities posed by fire risks. Luckily, I have this experience and will always be ready to work with you. Give me a call today to find out more about what it takes to buy or sell a home here in the South Okanagan.
*** Shannon Simpson is a real estate professional in Okanagan who specializes in providing top-quality results for every client. His passion for offering friendly and effective real estate services has made him one of the most successful and highly-praised Realtors in the local region. Having lived in all three major cities within the Okanagan, he can offer a unique perspective on the regions real estate market, and his services are renowned for their success rates and excellent value!