Being ordered to evacuate during a wildfire is stressful enough, but while you wait to see whether your home or condo has been damaged, you’ll rack up costs for lodging, food, transportation, pet boarding, etc. Can you claim some of these costs on your home insurance?
Possibly, but it depends on your policy and several factors, including what triggers coverage, caps, time limits, and more. We reviewed Statistics Canada’s 2023 and 2024 wildfire-area study, the Insurance Bureau of Canada’s wildfire coverage guide, the Canadian Red Cross guide to homeowners’ insurance, and the Canadian Red Cross wildfire preparedness guide to learn about wildfire evacuation coverage.
What Insurance Gaps Can a Wildfire Evacuation Expose?
If fire damage makes a house uninhabitable, some policies may pay additional living expenses during a typical restoration period or up to a payout cap. If your home is undamaged but you are prohibited from returning, other provisions may apply. Look for mass-evacuation or prohibited-access clauses that provide coverage for a set number of days. Both types of provisions vary by policy.
Examples of coverage gaps include a short prohibited-access time frame, reaching the cap, low limit for ordinary living expenses, lost wages, transportation, pet care, and other incidental expenses, or business losses under a policy not written to cover them.
Why Evacuation Duration Matters
The true economic cost of a wildfire often correlates more closely with the duration of evacuations from affected areas. Every day a business is closed, and a worker is displaced, the local economy bleeds productivity that is often irrecoverable.
The table below shows the number of days the affected areas were evacuated and the number of working days lost in that area.
| Area and year | Evacuation-order days |
|---|---|
| Kelowna, B.C., 2023 | 36 |
| Yellowknife, N.W.T., 2023 | 22 |
| Jasper, Alta., 2024 | 27 |
| Edson, Alta., 2023 | 7 |
| Upper Tantallon and Hammonds Plains, N.S., 2023 | 14 |
For a city like Jasper, losing 8% of its annual working days in a single event is a catastrophic blow to local economy. For households, these weeks spent in hotels or with relatives lead to mounting “Additional Living Expenses” (ALE) that can quickly exhaust standard home insurance policy limits.
Does Home Insurance Cover Wildfire Evacuations?
| Situation & Cost | Usual starting point | What to verify |
|---|---|---|
| Mandatory order, home not damaged | Additional Living Expense (ALE) may apply for mass evacuation or prohibited access. | Civil-authority trigger, beginning, ending, number of days, dollar limit and successive orders |
| Home unliveable after insured fire or smoke damage | During a reasonable time to repair or rebuild, Additional Living Expense coverage may apply. | Deductible, policy limits, ALE limits, approval for temporary housing and repair timeline |
| Hotel, meals, laundry and extra travel | Only an expense in excess of normal spending, if reasonable, may qualify. | Allowable expense categories, receipts, pre-approval and daily caps |
| Mortgage, rent, groceries and other normal bills | ALE generally does not cover regular living expenses. | Costs that will continue and how the insurer calculates increases |
| Lost wages or missed work | Income protection is not included in a home insurance policy. | Employer-provided benefits, emergency aid programs and other income-protection options |
| Home-based or other business interruption | Personal ALE is not commercial income protection. | Insured trigger, commercial policy, waiting period, coverage limits and records |
| Condo unit or rented home | The resident’s own condo or tenant policy may provide ALE. | Corporation or landlord policy, right to habitability and responsibility for repairs |
| Vehicle damaged by fire | Optional auto insurance may respond, such as comprehensive or all-perils coverage. | Insurer instructions, deductible and coverage under the auto policy |
Read More: Read the Canadian Wildfire Insurance Guide
Evacuations Trigger Claims Even When Homes Aren’t Destroyed
IBC says an evacuation order can trigger a claim, even without confirmed property damage, but the adjuster determines which trigger applies.
Keep in mind that prohibited-access coverage could end when an evacuation order is lifted. Damage-based ALE depends on your coverage and whether an insured loss has rendered the home unliveable.
The Canadian Red Cross says it’s common to pay for these expenses first and get reimbursed later. Keep all receipts and confirm how your insurer will calculate the expenses. You may be reimbursed for the difference between your normal spending and the additional amount.
Read More: Use the Home Fire Insurance Claims Guide
Build the Claim Record During the Evacuation
- Keep all evacuation orders, updates and all-clear notices, along with the addresses they applied to.
- Make a list of any help from government or charitable agencies, as this could affect your insurance claim. Programs can vary by province and event.
- Call your insurer as soon as it is safe to do so to start a claim. Write down your claim number and the adjuster’s name, and find out what type of coverage was triggered.
- Keep receipts for increased costs, including accommodation, food, laundry, pet care, storage and transportation. Some expenses may require your insurer’s approval, so call ahead. Keep a log of your normal and additional expenses.
- Take pictures of and list damaged food, appliances and belongings. Don’t throw anything out until your insurer advises you to dispose of damaged items.
Read More: Read What to Do About Home Insurance Claim Delays
What This Means for Households in Canada
An emergency fund covers upfront expenses before reimbursement, as well as expenses not covered by the policy.
Before wildfire season, locate the ALE section of your policy and identify the language covering prohibited access, its time limit, dollar limit, deductible and contact number. Ask how your policy handles multiple evacuation orders, pets and additional commuting expenses, and what happens when officials allow residents to return.
Estimate how much you’ll need for an evacuation based on family size, lodging costs, pets, accessibility needs and transportation.