British Columbia Financial Services Authority warns homeowners and buyers on wildfire insurance risks and offers an optional 30-day wildfire clause for home purchases

The British Columbia Financial Services Authority (BCFSA) issued a consumer alert urging British Columbia property owners and prospective homebuyers to assess wildfire and extreme weather risks and confirm their home insurance coverage is adequate. The alert also points buyers to an optional BCFSA wildfire clause for Contracts of Purchase and Sale that can help manage insurance and mortgage-financing challenges during active wildfire conditions. BCFSA recommends homeowners review policy details such as deductibles, coverage limits and living expense coverage if displaced, and keep policy documents and a photo or video record of property and belongings accessible. For homebuyers, it advises obtaining a fire insurance quote before making an offer and discussing key contingencies with insurers, lenders, and transaction professionals, including what happens if wildfire risk rises or a wildfire starts before closing. Where buyers have difficulty securing fire insurance, BCFSA notes options including requesting insurance information from the seller and using an “incumbent stay on risk” approach where the seller’s insurer temporarily reissues the policy in the buyer’s name. The optional wildfire clause allows a one-time extension of up to 30 days if wildfire conditions prevent obtaining fire insurance, reflecting that lenders may withdraw financing without insurance; buyers using the clause must demonstrate best efforts to secure coverage and keep records of attempts.