Earlier this week, thousands of Saskatchewanians were evacuated from their homes because of encroaching wildfires, and the flames have become so intense that their smoke is visible all the way in Toronto.
The wildfire season has begun, and once again, brokers need to remain on their frontlines in order to protect clients and adequately process an impending deluge of claims.
A brokerage owner in British Columbia, who has seen the disastrous effects of wildfires firsthand, is emphatic about the need for brokers to serve as an effective go-between for clients and their insurance carriers.
“One of the primary issues right now is that more people are building homes at the interface of the forest, and it’s up to brokers to make sure that they’re insured to value,” said Ruth Hoyte, AE Berry – Baron Insurance. “That was a lesson we learned from the Okanagan mountain fire in 2013 where there was a lot of devastation and homes affected that were not insured to value.”
Hoyte stresses that brokers should bring this to clients’ attention immediately, as many home and business owners unwittingly put themselves in precarious positions, and don’t realize what they’ve compromised until it’s too late to ameliorate the situation.
“We get a lot of phone calls from clients who see a fire approaching and suddenly want to insure their cabins, and we have to say no,” she said. “Although brokers are there to service clients, if they’re within a certain radius of the fire, their binding authority is restricted and they have to deny the request.”
As a result, Hoyte’s brokerage works with clients not only during the fire season but throughout the year to “ensure that their assets are protected and their homes are protected to value.” For this reason, she insists, “A big part of what brokers do is educate clients and act as risk managers.”
Brokers have several resources at their fingertips to fulfill this role effectively. Fred Muldowney-Brooks, director of risk services and solutions at Northbridge Insurance, has studied wildfires extensively and offers several suggestions that brokers can disseminate to their clients.
First, he emphasizes that there’s no need for panic, since “Wildfires are a naturally occurring phenomenon, and by no means a new occurrence.” While he acknowledges that Canadian urban growth is beginning to encroach on forested areas, and this may create the potential for new risks to life and property, there is no evidence that wildfires are escalating beyond what is typical.
In addition, brokers can advocate that clients adopt the following wildfire safety provisions:
• In fire-heavy areas, consider constructing homes and buildings with a metal roof instead of wood
• Install protective devices in chimneys
• Clear brush from around houses and buildings, and keep it 10 to 30 meters away from the structure
• Trim trees and ensure that branches remain 2 to 3 meters from the rooftop
• Comply with property egress requirements
• Remain appraised of threats through government services such as the BC Wildfire Service
“As a trusted adviser, it’s critical to make sure that customers have the information they need to understand the risks facing their homes and businesses, and be able to mitigate them,” he said.
