Residents of Saskatchewan who have been dealing with the aftermath of devastating wildfires now have a new issue to grapple with: insurance claims. 

What's happening?

According to Prince Albert Now, thousands of residents made insurance claims after the wildfires that ripped through the province earlier this year.

That process has been long and trying for many. Linda Lowe of Denare Beach has had four separate companies work on her claims.

"I cannot imagine going back to work full-time and having to deal with all the juggling that's going to take place with the insurance," Lowe told Prince Albert Now. "I'm fortunate that I have this summer off that I'll just be sitting at my computer constantly."

Making matters worse, the number of wildfire damage claims is so high that residents can expect their premiums to increase significantly as a result.

Why are rising insurance premiums important?

As the risk of natural disasters goes up, insurance premiums go up as well because insurance companies try to offset the chances of making big payouts to policyholders. In places such as California, the risk of wildfire is so great that companies are refusing to write new policies. Similar issues are present in Colorado and Florida, which face the threats of wildfires and hurricanes.

Emily Proulx, branch manager of Hub Insurance in Prince Albert, pointed out that those in high-risk areas will see the biggest rise in prices and that some could be unable to get coverage.

"We were trying to put insurance on those properties, and we were getting flat out 'Nos' from the insurance companies," Proulx told Prince Albert Now. "... They will use a pin drop, a radius. Depending on who the insurance company is, it might be 50 kilometers, it might be 75 kilometers. In one conversation that I had with an underwriter, they used the word 'threat.' They didn't even bring kilometers into the conversation. So, backing up to these properties that we were trying to insure, the houses were in Prince Albert, there were fire hydrants down the street."

The problem is that as the global climate shifts and warms because of the burning of dirty fuels and other human activity, severe weather events become bigger, stronger, and more widespread. Where once only the highest-risk areas featured sky-high insurance premiums, those areas are now larger and the prices higher, making it more difficult for people to own homes. 

What's being done about insurance premiums?

In Canada, there's no current or pending legislation to protect homeowners from skyrocketing premiums, but in the United States, there is hope of reprieve. Colorado has taken steps to protect homeowners, while California is doing the same.

If we make small changes in our daily lives, we can curb rising global temperatures and make the planet safer. Recycling, installing a native plant garden, and buying eco-friendly appliances can all add up to a safer future.

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