The Insurance Bureau of Canada (IBC) has announced that the wildfire that struck Lytton, BC on June 30, 2021 is estimated to have caused $102 million in insured damage – $24 million higher than initial estimates.
Citing the latest updated figures from Catastrophe Indices and Quantification Inc. (CatIQ), IBC said that while the number of claims remained unchanged from initial estimates, the “significant” delays in both recovery and reconstruction efforts served as key drivers in the increased costs.
IBC initially reported that the Lytton wildfire, which occurred on June 30, 2021, caused an estimated $78 million in insured damage. About 300 claims were filed related to the catastrophic incident, the bureau added.
According to IBC, the removal of debris from destroyed properties is not yet permitted in Lytton – though such a measure would typically be allowed within days or weeks of the damage. The bureau also highlighted that the area is of considerable archaeological importance to local First Nations, and has advised that a “respectful, responsible debris removal process” begin immediately.
By comparison, two other communities also devastated by wildfire – Fort McMurray (2016) and Slave Lake (2011) – had most of the debris removed six months after their respective fires, and reconstruction was underway, IBC said.
IBC also cautioned that in the coming months, the additional living expense (ALE) supports being provided by insurers to their insureds affected by the Lytton fire will soon expire.
"It has been over six months since wildfire devastated Lytton, yet the reconstruction of homes and businesses has yet to be permitted in the village," said IBC Pacific and Western vice president Aaron Sutherland. "We commend those leading recovery efforts, but greater urgency is needed.”
Sutherland added that the community of Lytton currently remains the same today as it was immediately after the fire, except now blanketed by snow.
“The ongoing uncertainty only makes this devastating situation even harder for many impacted residents,” the vice president mentioned. “Tragically, long delays in the recovery process may result in fewer residents returning to the community."
