It’s been a wild May in Alberta. Officials state that this is already the second-worst wildfire season on record, even though it is still early in the spring/summer season. Upward of one million hectares in Alberta have burned so far in 2023, in stark contrast to the 450 hectares burned by this time in 2022.
As of May 24, more than 7,000 Albertans remain under evacuation orders, with 65 wildfires still burning and 17 of those considered out of control. A good rain combined with dedicated firefighting efforts has allowed for evacuated residents in the areas of the O’Chiese First Nation, Swan Hills, Fox Creek, Yellowhead County, and Little Smoky (in addition to those from Drayton Valley last week), to now return home. For those coming back, it’s time to start assessing the damage.
Families can feel comfortable in that their home insurance will more than likely cover them for damages incurred from the wildfires, which is a circumstance completely out of homeowners’ control and generally included in good policies. If insurance has been kept up to date and properly reflects changes and improvements to the property, which are then supported through a comprehensive home inventory, filing a home insurance claim should be relatively pain-free.
For farmers and ranchers, the process can be a bit more arduous as there is a business aspect involved and rural properties face their own particular set of challenges. Farm insurance generally includes coverage for homes, outbuildings, machinery and equipment, livestock, produce (such as fruits, vegetables, honey, and grain), and loss of income coverage for when your business is interrupted, such as the circumstances happening now.
Farm vehicle insurance should include all of the equipment and machinery you use on your farm, plus personal vehicles, such as the family car.
Wildfire insurance claims for crops
Many Alberta farmers had already begun prepping and seeding their properties before the wildfires swept in. If you have suffered a loss of crops or damage to your property, talk to your insurance provider about filing a wildfire insurance claim.
Crops can be covered for losses due to hail, snow, frost, drought, excess moisture, wind, wildlife, insects, plant disease, and fire caused by lightning through regular, private farm insurance provided policyholders have met the restrictions laid out through their provider. A number of farmers in Alberta who grow products other than grain and produce, like hard red spring wheat, feed barley, canola, and yellow field peas, choose to be covered by government-subsidized crop insurance through the Agricultural Financial Services Corporation (AFSC), which also protects from reductions in yields due to an insured peril like a wildfire.
According to the AFSC, clients who have property insured under their Moisture Deficiency Insurance (MDI) may be entitled to their Pasture Spot Loss Fire Benefit. In order to qualify:
- Clients are required file their claims within two weeks of the fire
- A minimum of 100 acres must be burned
- The insurance must have started by March 1 and cover accidental fire and fire caused by lightning
For one year after the fire, only unburned acres are eligible for MDI coverage. The indemnification for the Pasture Spot Loss Fire Benefit covers up to 200% of MDI coverage over two years, recognizing it takes time for pastures to recover.
AFSC claims are generally decided through calculations determining how far margins will fall due to wildfire damage. If margins fall below 70 per cent of previous years, a benefit can be triggered. Other relevant factors used in the calculation include a reduction in income, increased expenses, and reduced inventory.
Wildfire insurance claims for livestock
Ranchers and farmers take wonderful care of their animals, treating them as members of their family and offering them the best possible life. The loss of these beings is devastating, especially if they had to be left behind.
Livestock is often insured through regular farm insurance for incidences such as fire, explosions, and even animal attacks, depending on what form you choose. A wildfire insurance claim can include any livestock that has been lost or harmed. If additional circumstances arise, such as the loss of pastures, feed stacks, and stables and housing, those costs can also be included.
Steps to take when filing your wildfire insurance claim
The Insurance Bureau of Canada (IBC) advises taking the following steps when filing your insurance claim due to the Alberta wildfires when it is safe to do so:
- Assess the damage
- List damaged and destroyed items and property
- Take photos of the damage
- Contact your insurance representative
- Assemble proofs of purchase, photos, receipts, and warranties of damaged property (if possible)
- Keep the damaged items unless they pose a health hazard
- Document all of the cleanup expenses and keep all of the receipts
- Evacuees should also present the receipts associated with leaving their home and staying elsewhere
After a loss is reported, an insurance adjuster is assigned. Those who have filed claims will be contacted and the adjuster will investigate the circumstances around the loss, examine the documents provided, and explain the claims process. Clients will be asked to fill out a Proof of Loss form listing all losses and providing their corresponding value. They then must swear to the validity of the report.
Don’t be afraid to ask questions at any time during the process, including whether or not the interior of your home and outbuildings are safe from any toxic residue and whether air-quality or soil testing may be covered.
Questions about your Alberta farm insurance?
The knowledgeable and understanding professionals at Lane’s Insurance are here to help you answer any questions you may have about where to access assistance after the wildfires and any other concerns you may have about your Alberta farm insurance. For personalized assistance, please contact a Lane’s Insurance customer service representative.
