Wildfire Season in the Shuswap: Why Homebuyers Must Secure Insurance Early

By Leanne Mollica, Mortgage Broker — My Mortgage Strategy (Salmon Arm, BC)

Wildfire season has arrived in British Columbia, and for homebuyers in Salmon Arm, the Shuswap, the Okanagan, and surrounding regions, it brings a critical but often overlooked challenge: securing home insurance in time for closing. When wildfires are active, insurance companies can impose moratoriums that temporarily prevent them from issuing new policies or updating existing ones. This can create significant delays for anyone purchasing a property or switching lenders, because mortgage funds cannot be advanced without confirmed insurance in place. During active wildfire events, most insurers enforce restrictions when a fire is burning within approximately fifty kilometres of a property. If the home is located in an evacuation alert or evacuation order zone, insurers will typically halt approvals entirely until the risk level changes. These restrictions can last days or even weeks, depending on fire behaviour and containment progress.

For homebuyers, these delays can lead to serious consequences. Without insurance, lenders cannot release funds, which means the purchase cannot complete and possession cannot happen as scheduled. In competitive markets or tight timelines, this can create contractual issues, financial penalties, or the loss of the property. Even buyers whose closing dates are weeks away can be affected, since fire conditions can change quickly and insurers may impose moratoriums with little notice. Securing an insurance binder early ensures protection from unexpected fire activity and preserves your ability to close without disruption.

The safest strategy for homebuyers in the Shuswap and Okanagan is to arrange insurance as soon as subjects are removed and the purchase becomes firm. This proactive step locks in coverage before any moratoriums take effect and ensures that lender conditions can be satisfied well ahead of funding day. For borrowers refinancing or switching lenders, early insurance confirmation is equally important, as updated policies or amendments may not be permitted during an active fire event.

Given the unpredictability of wildfire season, preparing early is essential. A mortgage professional can help coordinate timelines and ensure that lender requirements are met well before closing. With proper planning, homebuyers can avoid last-minute complications and protect both their financing and their property purchase during peak wildfire months.

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