As wildfire season becomes an increasingly common reality in British Columbia, homebuyers need to be more prepared than ever. Purchasing a home during this time presents unique challenges, particularly when it comes to securing home insurance and navigating the real estate market. In this blog post, we'll provide essential tips for buying a home during wildfire season, ensuring you can protect your investment and make informed decisions.
1. Understanding the 50 km Wildfire Insurance Radius
One of the most critical factors to consider when buying a home during wildfire season is the 50 km wildfire insurance radius rule. Most insurance providers in BC won’t bind policies on properties within 50 km of an active and uncontained wildfire. However, some may consider properties between 25 km and 50 km away on a case-by-case basis. It’s crucial to stay updated on the status of wildfires near your prospective home using tools like the BC Wildfire Dashboard.
2. Drafting Contracts with Wildfire Risks in Mind
When drafting a purchase contract during wildfire season, it’s essential to include a "subject to insurance" clause. This clause protects you in case you can’t secure insurance by the completion date, which could otherwise jeopardize your mortgage approval. Additionally, consider negotiating for a longer completion period, such as waiting until fall when wildfire activity is typically lower.
3. The Importance of Getting a Binder, Not Just a Quote
When securing home insurance, it’s vital to understand the difference between a quote and a binder. A quote only outlines the coverage and costs, whereas a binder means the insurer has issued a policy that will take effect on the agreed date. Ensure your insurance policy is bound to your closing date to avoid gaps in coverage, especially during wildfire season.
When securing home insurance, it’s vital to understand the difference between a quote and a binder. A quote only outlines the coverage and costs, whereas a binder means the insurer has issued a policy that will take effect on the agreed date. Ensure your insurance policy is bound to your closing date to avoid gaps in coverage, especially during wildfire season.
4. Start Shopping for Insurance Early
Wildfire season can make it more challenging to secure home insurance, so it’s important to start the process as early as possible. Delays in obtaining insurance can hold up the sale or even cause a deal to fall through if your mortgage is contingent on securing coverage. Don’t wait until the last minute—begin your search for insurance providers as soon as you start the home buying process.
5. Seek Legal Advice When Necessary
If you encounter any legal challenges during the home buying process—such as needing to extend the completion date due to wildfire risks—seek legal advice immediately. Changing dates or terms in a contract can reopen the agreement, so it’s crucial to understand your rights and obligations fully.
Conclusion
Buying a home during wildfire season in British Columbia requires careful planning and awareness of the unique risks involved. By understanding the 50 km insurance radius, drafting contracts with wildfire risks in mind, securing insurance early, and seeking legal advice when necessary, you can navigate the process with confidence. Protect your investment and ensure a smooth home buying experience, even during these challenging times.
If you have any questions or need assistance with your real estate needs during wildfire season, feel free to contact me directly!