Whereas homeowner insurance coverage across British Columbia is unavailable or is prohibitively expensive for many homeowners in rural and remote areas or in areas serviced by cable ferries; And whereas homeowner insurance policy provisions across British Columbia are inconsistent, are subject to reductions in coverage when homes are sold or transition from construction insurance to regular homeowner insurance upon occupancy, and many policies cannot be renewed during wildfire season, which is becoming longer and more impactful each year: Therefore be it resolved that UBCM petition the Province to introduce and adopt legislation that requires all insurance providers in British Columbia to provide insurance to all homeowners in the province with provisions that are consistent, fair, and equitable.
Ministry of Finance Insurance coverage and pricing is an ongoing business decision undertaken by insurers, based on a careful analysis of risk, market conditions, and regulatory requirements. A number of issues have arisen in recent years that have driven the cost of insurance upwards, and, in some cases, have made insurance less available. Issues contributing to the increase in insurance costs include more frequent natural disasters flooding, fires, etc., a reduction in the number of insurers offering insurance in certain markets and other market pressures lower interest rates, supply chain issues that increase the costs related to building and construction, etc.. However, even during wildfire season, insurance remains generally available throughout the province. Only areas under imminent threat are subject to temporary restrictions or limitations on the sale of new coverage. Those who need new insurance coverage in areas under imminent threat may be able to find a specialized insurer and get short-term coverage, although this coverage is costly. Government intervention in a private market must be carefully considered, to ensure that any measures do not distort the market and create unintended consequences. For example, requiring insurers to provide insurance, regardless of the risk, may lead to insurers simply leaving the province, which could lead to significant increases in premiums with the insurers that remain. Government continues to work closely with regulatory authorities, such as the BC Financial Services Authority and the Insurance Council of BC, to understand what, if any options are available that could mitigate the increased cost of insurance, as well as improve availability and choice for consumers.