🔥Wildfire Insurance🔥
Why Securing Home Insurance Before Closing Should Be a Top Priority for Summer Buyers
If you're planning to close on a home this summer, congratulations, it's an exciting milestone. But there's a critical step that many buyers overlook until the last minute, and in today's insurance landscape, leaving it too late can put your entire purchase at risk: securing home insurance before your closing date.
The Summer Wildfire Window Is Real
In British Columbia and across much of Western Canada, summer brings elevated wildfire risk. Every year between June and September, insurers pay close attention to active fire activity and, increasingly, they respond by implementing temporary coverage moratoriums. These are periods during which they will not issue new home insurance policies in affected or at-risk zones.
This isn't a worst-case scenario. It happens regularly, and it can happen with little warning.
What This Means for Your Purchase
Most mortgage lenders require proof of home insurance before they will fund a mortgage. No insurance, no funding. No funding, no closing.
If you find yourself in the final days before possession and a moratorium has been triggered in the area where your new home is located, you may have very few options available to you (and none of them are easy). Delays to your closing, potential penalties, or in some cases losing the home altogether are all possible outcomes.
When Should You Start Looking?
Our strong recommendation: begin your insurance search the moment you have an accepted offer, and have a policy confirmed well before your closing date — ideally within your subject removal period so you know coverage is available before you firm up the deal.
Don't wait until the week before possession. You can pay for and bind your insurance policy 30 days prior to the closing date. Having your insurance paid for in advance does not mean you pay for an additional month, you are securing the policy early and giving yourself peace of mind. Don't assume coverage will be easy to obtain in summer months. Contact an insurance broker early and ask directly whether there are any active restrictions or moratoriums in the area.
A Few Things Worth Knowing
Insurance premiums and availability can vary significantly depending on proximity to wildland-urban interface areas, local fire history, and the property's construction type.
Some insurers have entirely withdrawn from offering new policies in certain high-risk regions. A broker who shops multiple carriers will give you more options than going directly to a single company.
If you're purchasing a strata property, confirm what the strata's master policy covers and what you're responsible for individually as this affects what type of personal policy you'll need.
Work With Your Team Early
Your REALTOR®, mortgage broker, and insurance broker should all be in communication as you approach your closing date. If you don't already have an insurance broker you work with, ask for a referral, this is one of the most useful connections we can make for our clients.
Purchasing a home is one of the largest financial decisions you'll ever make. A little extra diligence on the insurance front — especially during summer months — protects that investment from day one.
Have questions about what to expect during the closing process? We're always happy to walk you through it.