As the active Bald Range fire and other surrounding wildfires continue to affect our region, our hearts go out to the many families and neighbors who have been displaced or evacuated from their homes. During times like this, public safety, family well-being, and community support are what matter most. We also recognize that ongoing property transactions—whether you are actively buying, selling, or preparing for a future move—come with added uncertainty right now. From temporary insurance binding restrictions and inspection delays to closing adjustments and shifting timelines, regional wildfires impact real estate in unique ways. To help you navigate these challenging circumstances, we’ve outlined essential tips and key details for both buyers and sellers below.
TIPS FOR BUYERS AND SELLERS
Stay informed on wildfire zones: Track wildfire zones by using provincial resources like B.C. Wildfire Service’s Wildfire Map. Staying informed can help you determine whether to pursue a property, if you should add a clause to your offer, and next steps in case a seller is under an evacuation order.
Obtain your quote early and bind them right away: Talk to your insurance broker to secure a fire insurance quote early, and to ask detailed questions. For example, ask whether the insurance company could bind the policy in advance, and if they could revoke a bound policy. Most insurance companies will bind your insurance within 30 days of completion so bind right away! Reason being, if a fire breaks out 14 days before you close, you'll be okay because you were bound 30 days out. Get quotes and bind the suitable insurance right away! Fire Clauses are your best friend: Make sure to ask your agent to include a Fire Clause or Force Majeure clause for protection if a fire breaks out and you cannot get insurance. If a fire breaks out before you complete your sale, you will not get insurance or financing if you have no home insurance. These fire/force majeure clauses will protect you and allow you to extend the closing date to ensure you can get home insurance and financing. It's a standard in the South Okanagan due to fire season every year so make sure to put those in your contract!
If you have questions, just give us a call!
Get a Binding policy: There’s a big difference between getting a quote from an insurance provider and an insurer “binding” a policy. A quote just summarizes the coverages being offered and the annual premium (price). When an insurance provider binds an insurance policy, it means they’ve issued the policy and coverage will come into effect on the agreed-upon date. Buyers should request that the insurer binds the policy to align with the closing date so that coverage is active when the sale has been completed. However, if the closing date changes, a bound offer won’t become valid until the buyer becomes the owner and the buyer should notify the insurer to change the effective date.
Once a policy has been bound, the insurer is generally bound to honour the policy (assuming there is no misrepresentation on the buyer’s part), even if a fire were to ignite that is a potential threat to the home or a pre-existing wildfire were to spread.
Don’t assume, ask is this policy bound and can it be revoked?
Once a policy has been bound, the insurer is generally bound to honour the policy (assuming there is no misrepresentation on the buyer’s part), even if a fire were to ignite that is a potential threat to the home or a pre-existing wildfire were to spread.
Don’t assume, ask is this policy bound and can it be revoked?
If you are selling your home in a fire-prone area, it’s important to maintain your existing insurance coverage until after completion is confirmed in case the transaction falls through.
Double check your home insurance: You may think you're covered for forest fires or overland flooding but most people don't read the fine print. With all the active fires in the area, now would be a good time to double check your coverage and make sure you are covered for everything and accurate replacement value should anything happen to your home.
Ensuring you have comprehensive coverage, understanding what your policy covers, creating an inventory of your belongings, keeping important documents safe, and staying informed about wildfire risks in your area are all crucial steps.
Seek legal advice if:
You’re uncertain or have questions about any clauses or terms the buyers have added to the contract.
Your property has been directly damaged by a wildfire.
You’re planning to purchase another property after the sale of the current property and have concerns about how an extension due to a wildfire clause could impact your transaction and/or financing. In this situation, you may also want to talk to your lender about financing options.
Ensuring you have comprehensive coverage, understanding what your policy covers, creating an inventory of your belongings, keeping important documents safe, and staying informed about wildfire risks in your area are all crucial steps.
Seek legal advice if:
You’re uncertain or have questions about any clauses or terms the buyers have added to the contract.
Your property has been directly damaged by a wildfire.
You’re planning to purchase another property after the sale of the current property and have concerns about how an extension due to a wildfire clause could impact your transaction and/or financing. In this situation, you may also want to talk to your lender about financing options.
As a homeowner, you must understand the risks and take steps to protect yourself and your community. You can make your home more resilient to wildfires by following the BC Government’s FireSmart guidelines, which help reduce hazards on your property.
Our thoughts are with all those
effected by fires.Wishing you the best and hoping your homes are intact.
Huge thank you to all the emergency workers who are responding to the fires!
*Information here is from BC Financial Services Authority & the BC Real Estate Association
