• Rebuilding or repairing your home
• Replacing damaged belongings
• Temporary living expenses if your home becomes uninhabitable
• Liability protection if others are impacted by the loss

In situations like these, knowing your coverage is properly set up ahead of time can remove a lot of uncertainty during an already stressful experience.

How Fire Risks Can Affect Your Home
Wildfire season in BC is becoming more intense and unpredictable, increasing the risk to homeowners across the province.

Understanding Fire Risks Around the Home:
Fire risks can come from several different sources, including:

• Wildfires and ember exposure
• Faulty wiring or overloaded electrical systems
• Unattended cooking
• Space heaters or fireplaces
• Candles left burning
• Improper storage of gasoline, propane, or other combustibles

During wildfire season, homeowners may also face risks related to smoke damage, evacuation orders, and delays in rebuilding due to increased demand for contractors and materials. At the same time, many fire losses happen unexpectedly during everyday activities at home.

How to Reduce Fire Risks?
Prevention is always better than dealing with the aftermath. Here are some essential safety tips:

• Test monthly and replace batteries annually.
• Install smoke detectors on every floor and inside bedrooms.
• Have a qualified electrician inspect your wiring and appliances regularly.
• Keep space heaters away from flammable materials and never leave them unattended.
• Never leave cooking food unattended, and keep flammable items away from stovetops.
• Never leave candles unattended and keep them away from curtains or paper.
• Store gasoline, propane, and other combustibles outside in approved containers.
• Make sure everyone in your household knows how to evacuate quickly in case of fire.

What to Do if a Fire Occurs?
If a fire breaks out, quick action can help reduce damage and protect your loved ones:

• Alert everyone immediately and evacuate the home safely.
• Call emergency services once you are in a safe location.
• Avoid re-entering the home until authorities declare it safe.
• Document the damage with photos or videos for insurance claims.
• Notify your insurer promptly to start the claims process.
• Follow your insurer’s guidance on repairs and cleanup.

Common Coverage Gaps Homeowners Overlook:
One of the more common issues we see is homeowners assuming their coverage automatically keeps pace with rising rebuilding costs or changes to their property.

Some areas worth reviewing include:

• Rebuilding values that may no longer reflect current construction costs
• Coverage limits for jewelry, collectibles, or high-value items
• Detached structures such as garages, sheds, or outdoor buildings
• Additional living expense limits
• Policy conditions related to renovations, vacancy, or heating requirements

Choosing the Right Home Insurance Coverage:
Selecting the appropriate coverage involves understanding your needs and the risks you face:

• Rebuilding Costs: Make sure your policy limits reflect the true cost to rebuild your home today.
• Personal Property: Inventory your belongings and verify coverage limits.
• Additional Living Expenses: Confirm your policy provides enough coverage for temporary housing if needed.
• Liability Protection: Protect yourself against claims made by others for damages or injuries caused by fire.

Why Work with Schill Insurance?
At Schill Insurance, we help you understand how home insurance covers fire risks—along with other perils—and ensure you have the right protection in place. We offer personalized advice, support during the claims process, and help you review your policy to keep your home and family safe.

Protect Your Home Today
With wildfire season approaching, it’s the perfect time to review your home insurance coverage. Reach out to Schill Insurance today to explore your options and ensure your home is protected against fire risks. Remember, being prepared is your strongest defense.

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From sophisticated phishing campaigns to business email compromise (BEC), criminals are targeting BC companies with evolving tactics. Understanding how these scams work and implementing effective prevention strategies can save your business from costly losses.

How Cyber Fraud Scams Have Evolved

Cybercriminals continually adapt their methods, making scams more convincing and harder to detect. Today’s scams often involve fake emails that closely mimic legitimate contacts, tricking employees into transferring money or revealing sensitive information. Business email compromise (BEC) is a prime example, where fraudsters impersonate trusted partners or executives to request wire transfers or confidential data.

Real Example of Business Email Compromise

Imagine receiving an email that appears to come from your supplier, requesting an urgent payment to a new bank account. The email looks legitimate, with familiar branding and language. When your staff processes the payment without verification, the money goes to scammers. This is a common real-world scenario of business email compromise impacting BC businesses.

Why Businesses in BC Are Vulnerable

Small and mid-sized businesses in BC, especially in Vancouver, Surrey, and across the Lower Mainland, are increasingly targeted. They often lack the extensive internal controls of larger corporations and rely heavily on email workflows, making them attractive targets for cybercriminals. Industries such as construction, property management, and professional services are particularly at risk.

Why Awareness Training Isn’t Enough

While employee training is essential, it alone may not fully prevent cyber fraud. Scammers use increasingly sophisticated tactics, and even vigilant staff can be caught off guard. A comprehensive approach that combines training, technology, and insurance coverage is vital for effective protection.

How to Prevent Cyber Fraud in Your Business

• Protect your BC business with these proactive measures: Implement Verification Procedures: Confirm payment changes by phone or through a second communication channel.
• Require Dual Approvals: Critical transactions should need approval from multiple authorized personnel.
• Use Secure Email and Authentication: Implement strong email security protocols and multi-factor authentication.
• Train Employees Regularly: Keep staff updated on current scams and red flags.
• Invest in Cyber Security Tools: Use anti-phishing tools, firewalls, and intrusion detection systems.
• Consider Cyber Insurance: Coverage can help mitigate financial losses and provide access to incident response teams.

How Cyber Insurance Helps
Cyber insurance in BC offers vital protection against fraud, phishing scams, and other cyber risks. Many policies cover social engineering fraud and provide access to experts who can assist with response and recovery. Having the right coverage ensures your business can recover quickly and avoid devastating financial impacts.

Concerned About Your Exposure to Cyber Fraud?
We work with businesses across British Columbia to identify where fraud is most likely to occur and how to reduce risk without slowing operations.

• Review your current processes
• Identify potential gaps
• Ensure your cyber insurance responds when it matters most

Protect Your Business Today
If you want expert guidance on safeguarding your business from cyber fraud and other cyber risks, call us or visit our cyber insurance page to learn more: Schill Insurance Cyber Insurance. Our experienced team is here to help you find the right coverage to keep your business secure.

Request a Cyber Risk Review today and protect your business from evolving cyber threats.

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If you live near British Columbia’s coastline, tsunami preparedness should be more than just something you hear about on the news once a year.

April 12–18 marks Tsunami Preparedness Week in BC, and it serves as an important reminder for homeowners and families in coastal communities to understand their risks, review their emergency plans, and make sure they know what to do if disaster strikes.

At Schill Insurance, we believe protecting your home starts with understanding your exposures—not just buying a policy and hoping for the best. So in recognition of Tsunami Preparedness Week, we’re breaking down what BC homeowners need to know about tsunami risk, emergency planning, and an important insurance gap many people don’t realize exists.

What Is Tsunami Preparedness Week in British Columbia?

Tsunami Preparedness Week is recognized annually by the Province of British Columbia to help educate residents on tsunami hazards, evacuation planning, and emergency readiness.

In 2026, Tsunami Preparedness Week runs from April 12 to April 18 and includes community education initiatives, emergency planning resources, and local preparedness events across the province.

The goal is simple: help British Columbians understand tsunami risk before an emergency happens.

Why Does BC Have Tsunami Risk?

British Columbia has the highest tsunami risk in Canada due to its location along the Pacific coastline and proximity to the Cascadia Subduction Zone—a major fault line stretching from Northern California to Vancouver Island.

Scientists believe there is approximately a 15% chance of a major Cascadia earthquake occurring within the next 50 years, with the potential to trigger significant tsunami activity along parts of BC’s coastline.

While not every coastal community faces the same level of exposure, tsunami risk remains a serious consideration for residents living near the ocean, particularly on Vancouver Island and other west coast communities.

Know Your Tsunami Notification Zone

The Province has divided BC’s coastline into five tsunami notification zones to help emergency officials issue alerts quickly and effectively.

Knowing your zone can help you understand your level of exposure and how emergency warnings may impact your area.

If you’re unsure which zone your property falls within, PreparedBC offers a full tsunami zone map online.

What Should You Do During a Tsunami Warning?

If you are near the coast and experience a strong earthquake or receive a tsunami warning, emergency officials recommend taking immediate action:

Drop, Cover, and Hold On during the earthquake.
Protect yourself from falling debris or injury while shaking is occurring.

Move to high ground immediately once the shaking stops.
Do not wait for additional instructions if you are in a tsunami-prone area.

Remain in a safe location until officials issue an all-clear.
Tsunami waves often arrive in multiple surges over several hours.

Avoid shorelines and beaches.
Even small tsunami surges can create dangerous currents and flooding.

High Ground Hikes Help BC Residents Prepare

One of the most practical preparedness initiatives offered during Tsunami Preparedness Week is the Province’s High Ground Hike program.

These organized community walks help residents practice real evacuation routes and become familiar with designated tsunami-safe areas in their neighbourhoods.

To view the current list of participating communities and upcoming event dates, visit the BC Government’s official High Ground Hike page.

Even if your area is not participating, taking time to review your evacuation route with your household is a smart preparedness step.

Does Home Insurance Cover Tsunami Damage in BC?

This is one of the most common questions homeowners ask—and the answer often surprises people.

Tsunami and tidal flooding are typically excluded under standard home insurance policies and most enhanced water damage endorsements offered by standard insurers. Coverage may vary by insurer and policy wording, so homeowners should review their individual policy terms carefully.

Many homeowners assume earthquake insurance automatically covers all damage resulting from an earthquake-related event, but that is not always the case.

Understanding what your policy includes—and what it excludes—is critical, especially if you own property near BC’s coastline.

Tsunami Preparedness Checklist for BC Homeowners

If you live in or near a coastal community, here are a few important preparedness steps to take this week:

• Learn your tsunami notification zone
• Review local evacuation maps and routes
• Build or refresh your household emergency kit
• Sign up for local emergency alerts
• Practice your evacuation plan with family members
• Review your home insurance coverage and exclusions

Preparedness is one of the easiest ways to reduce panic and improve safety during an emergency.

Final Thoughts: Be Prepared and Know Your Coverage

Living in British Columbia means enjoying one of the most beautiful coastlines in the world—but it also means understanding the natural risks that come with it.

Tsunami Preparedness Week is a great opportunity to make sure your family has a plan, your household is prepared, and your insurance coverage aligns with your needs.

If you have questions about your home insurance coverage or want help reviewing your policy, our team at Schill Insurance is here to help.

Sources & References

• PreparedBC (Government of British Columbia): https://www2.gov.bc.ca/gov/content/safety/emergency-management/preparedbc/know-your-hazards/earthquakes-tsunamis/tsunami
• BC Government High Ground Hike Program: https://www2.gov.bc.ca/gov/content/safety/emergency-management/education-programs-toolkits/high-ground-hike
• Insurance Bureau of Canada: https://www.ibc.ca/
• Natural Resources Canada Seismic Hazard Information: https://www.seismescanada.rncan.gc.ca/
• Financial Consumer Agency of Canada: https://www.canada.ca/en/financial-consumer-agency.html

Coverage availability, terms, conditions, and exclusions vary by insurer and policy. This article is provided for general informational purposes only and should not be relied upon as insurance advice. Please speak with a licensed insurance broker regarding your specific insurance needs and policy coverage.

Schill Insurance Brokers — serving BC communities since 1972.

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What Types of Water Damage Are Usually Covered? Most standard policies typically cover:

Accidental leaks: Unexpected failures or appliance malfunctions caused by the rain are usually covered, but damage resulting from neglect isn’t.

Roof leaks: Damage caused by storms or falling debris may be covered, though ongoing leaks from wear and tear are generally excluded. Repairs to roofs are often paid on an actual cash value basis, while interior damage is covered at replacement cost.

Flooding and Heavy Rain

Standard home insurance generally does not include flood damage. If your area is prone to flooding during heavy rains, consider adding Overland Water coverage. This optional protection helps cover sudden damage caused by water flowing over land and entering your home at ground level, including through doors, windows, or foundation walls.

In some cases, coverage for groundwater, water rising up through the foundation or basement floor, may also be available as an additional option, depending on your policy.

Protect Your Home During the Rainy Season

Prevent water issues by inspecting and maintaining plumbing, cleaning gutters regularly, installing sump pumps, sealing foundation cracks, and considering devices like backwater valves or smart leak detectors that automatically shut off water if a leak is detected.

At Schill Insurance, we understand the risks that come with rainy seasons. Our team can help you find the right coverage, to keep your home and belongings safe. Contact us today for a personalized quote and peace of mind.

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At Schill Insurance, we believe that safety starts with awareness and proactive measures. Whether you’re commuting, running errands, or exploring scenic routes, following these spring driving safety tips can help you stay protected.

Prepare for Spring Weather

Spring weather can be unpredictable—ranging from bright sunny days to sudden rain showers or even late-season snow. Wet roads can be slippery, and standing water increases the risk of hydroplaning. Always reduce your speed when encountering rainy conditions, and maintain a greater distance from the vehicle ahead. Remember, stopping distances increase on slick surfaces, so give yourself plenty of time to brake.

Watch for Road Hazards and Damage

As the snow melts away, it leaves behind a trail of potholes, cracks, and uneven pavement. These hazards can cause tire blowouts or suspension issues if not navigated carefully. Stay vigilant, especially in areas where road repairs are ongoing. Avoid swerving abruptly—slow down when approaching potholes, and inspect your tires afterward for any damage.

Clear Your Vehicle

Winter conditions often leave your car covered in snow, ice, and mud. Before driving, dedicate a few minutes to clearing all windows, mirrors, headlights, and taillights for optimal visibility. Properly functioning lights are crucial, especially during spring storms or foggy mornings. Additionally, check your windshield wipers and replace them if streaking or ineffective.

Watch for Wildlife and Pedestrians

Spring is a season of activity for wildlife, with animals crossing roads more frequently. Be especially cautious during dawn and dusk, when animals are most active. Pedestrians and cyclists also become more prevalent as the weather warms. Stay alert, obey speed limits, and be prepared to stop suddenly if needed.

Maintain Safe Following Distances

Muddy, wet, and slippery roads reduce tire traction. Keep a safe following distance—at least three seconds during dry conditions, and longer in rain or poor visibility. Increasing your distance gives you more reaction time if the vehicle ahead suddenly brakes or encounters hazards.

Use Your Headlights Properly

Visibility can be compromised during spring rains or fog. Use your headlights in these conditions to improve your visibility and ensure other drivers can see you. Avoid high beams in fog, as they can reflect off moisture and impair your vision further.

Regular Vehicle Maintenance

Spring is an ideal time to inspect and service your vehicle. Check tire pressure and tread depth—worn tires are dangerous on slick roads. Ensure your brakes are responsive and in good condition for sudden stops. Replace windshield wipers if they streak or fail to clear your windshield. Proper maintenance enhances safety and handling in changing weather conditions.

Be Alert in Construction Zones

Spring often sees an increase in roadwork as municipalities repair winter damage. Construction zones can introduce hazards such as lane closures, uneven surfaces, or workers near traffic. Drive cautiously through these areas, obey signs, and slow down to protect everyone.

Plan Your Routes and Expect Delays

Spring weather can cause unexpected delays, detours, and road closures. Check traffic updates before you leave, and consider alternative routes. Leaving extra time for your trip reduces stress and allows you to drive more safely.

Keep Emergency Supplies in Your Vehicle

Spring weather can be unpredictable. Be prepared for emergencies by stocking your car with essentials such as a first aid kit, flashlight, bottled water, and basic tools. In case of breakdowns or accidents, these supplies can be vital.

Practice Safe Driving Habits

Make safety a priority this spring. Obey speed limits, avoid aggressive driving, and always wear your seatbelt. Good driving habits are simple but effective ways to prevent accidents and injuries.

Review and Update Your Insurance

Spring hazards underscore the importance of having comprehensive auto insurance coverage. Take time to review your policy with Schill Insurance to ensure you’re protected against the season’s risks. An updated policy gives you peace of mind knowing you’re covered if the unexpected happens.

Extend Your Safety to Your Home

Spring isn’t just about driving—it’s also an excellent opportunity to perform essential home maintenance. Use our Spring Home Maintenance Checklist to prepare your property for the season. Clear gutters, inspect your roof for winter damage, and check your outdoor drainage to prevent flooding. A well-maintained home not only protects your investment but also complements your safety efforts on the road.

Enjoy Spring Safely

Spring offers countless opportunities for scenic drives, outdoor activities, and quality time with loved ones. But it’s important to stay vigilant and prepared for the season’s unique challenges. By following these driving safety tips and maintaining your property proactively, you can enjoy everything spring has to offer with confidence.

At Schill Insurance, we’re committed to your safety—both on the road and at home. Review your auto and home policies today to ensure comprehensive protection. And don’t forget to check out our Spring Home Maintenance Checklist for tips on keeping your property in top shape this season.

Drive safely, enjoy the beauty of spring, and make this season one of safety and renewal!

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What Is Tenant Insurance?

Tenant insurance, is a policy designed to protect tenants from financial loss related to their personal property and liability. While your landlord’s insurance covers the building itself, tenant insurance focuses on your possessions and your legal responsibilities.

Why Is Tenant Insurance Essential?

• Protection Against Theft and Damage: Protect your valuables from burglary, fire, water damage, vandalism, and other unforeseen events.
• Liability Coverage: If someone sustains an injury in your rental or you accidentally cause damage, liability coverage can help pay legal expenses and damages.
• Additional Living Expenses: If your rental becomes uninhabitable due to a covered loss, tenant insurance can cover temporary housing costs.
• Financial Peace of Mind: Knowing you’re protected helps you focus on enjoying your home without anxiety about potential risks.

What Does Tenant Insurance Cover?

This insurance can cover items such as electronics, furniture, clothing, and valuables if they are stolen, damaged, or destroyed. It also offers liability coverage to protect you if someone is injured on your property or if you accidentally cause damage to someone else’s property.

Although coverage can vary depending on the provider, most tenant insurance policies include the following key protections:

• Personal Property: Coverage for personal belongings like electronics, clothing, and furniture against theft, fire, vandalism, and certain water damages.
• Liability Protection: Coverage for legal costs and damages if you’re found responsible for injury or property damage to others.
• Additional Living Expenses (ALE): Reimbursement for temporary accommodations, meals, and other costs if your rental is uninhabitable due to a covered event.
• Medical Payments to Others: Covers minor medical expenses if someone is injured on your property.

Some policies offer optional add-ons for specific needs, such as high-value item coverage or coverage for natural disasters like earthquakes or floods.

How to Obtain a Tenant Insurance Quote

Getting a quote is quick and easy, especially with online tools. Here’s a simple process to follow:

1. Assess Your Needs: Estimate the replacement value of your belongings and consider any additional coverage you might need.
2. Compare Quotes: As a brokerage, we can help you compare options from multiple providers to ensure you find the best coverage at the most competitive price.
3. Provide Details: Share information with us about your rental property, belongings, and safety features such as alarms or security systems.
4. Review Carefully: Look beyond the premium—check what’s covered, limits, deductibles, and exclusions.
5. Select the Best Fit: Choose a policy that offers comprehensive coverage at an affordable rate.

How Much Does Tenant Insurance Cost?

Premiums depend on factors like your location, the value of your possessions, and coverage limits. On average, tenants can expect to pay between $25- $40 per month. Getting a personalized quote helps you find a policy that fits your budget and offers the protection you need.

Final Thoughts

Tenant insurance is a smart investment for any renter. It provides crucial protection for your belongings and liability, giving you confidence and peace of mind. At Schill Insurance, we’re committed to helping you find the right coverage tailored to your circumstances.

Don’t wait until an unexpected event occurs—get your tenant insurance quote today and secure your home and possessions with confidence.

You can click here to access and go through the Home Inventory list.

Protect what matters most with Schill Insurance—your trusted partner in coverage.

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Mortgage insurance is one of the most misunderstood parts of buying a home. Remember, purchasing a property is the largest and most significant transaction you’ll make in your life. That’s why it’s so important to choose mortgage insurance that truly meets your specific needs, ensuring your family’s financial security.

Mortgage insurance made for you

Most people who buy mortgage insurance do so through their lending institution. But it’s worth comparing options! Comparing mortgage insurance through your bank versus personal insurance can make a big difference in beneficiary control, coverage amount, portability, and overall cost-effectiveness.

Personal life insurance is generally considered a more flexible and valuable option for most individuals and families. We can help you find the right mortgage protection plan for your situation. You can get all your coverage in one place and often save money in the process!

Create your custom mortgage package today!

For peace of mind:
— Mortgage insurance can cover your mortgage amount as well as other loans (like your car loan or line of credit).
— You can add coverage for income replacement if you experience disability or critical illness. There are many options to customize your protection.

Flexible coverage to suit your changing needs:
— Coverage can be for the length of your mortgage or for life.
— You can renew your coverage if your needs change.
— You can convert your mortgage insurance into permanent life insurance without needing to provide new health information.

Affordable coverage to support your life goals:
— Enjoy one fixed, guaranteed premium for the entire term.
— Choose decreasing coverage to save even more.

In the end, mortgage insurance isn’t just about spending extra money—it’s about protecting your home, your family, and your future. By understanding how it works and when it’s needed, you can make confident decisions that align with your goals. At Schill Insurance, we’re here to help you navigate your options and find the right coverage for your life.

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So, what is it? Basically, permanent life insurance is a type of coverage that lasts your entire life. No matter your age, health, or past, your loved ones are guaranteed a death benefit when the time comes.

Here are the four key things you should know about permanent life insurance:

1. Cash Value
   Some plans include a cash value — think of it like a savings account that grows over time, tax-deferred. And the best part? You might be able to access this money during your lifetime if you need it.
2. Lifelong Coverage
   This isn’t temporary. You get coverage that never expires, giving you peace of mind that your loved ones are protected no matter what.
3. Stable Premiums
   Most permanent policies have premiums that stay the same over the years. Some plans even guarantee you’ll only pay premiums for a certain period, making it easier to plan your finances.
4. Tax-Free Death Benefit
   When it’s time, your beneficiaries receive the money tax-free, and they can use it however they choose — whether it’s to cover expenses, pay off debts, or help with future goals.

Now, you might be wondering: what types of permanent life insurance are there? There are three main kinds:

• Whole life insurance
• Universal life insurance
• Participating life insurance

Each one offers unique features, and the best choice depends on your personal needs, goals, and circumstances. The good news? These plans are all customizable. We’ll work with you to design a plan that fits your life — now and in the future.

At Schill Insurance, we believe there’s no one-size-fits-all answer. But if lifelong protection, stability, and peace of mind sound good to you, permanent life insurance might be the right choice.

We’re here to help you understand how it works and to guide you toward the best decision for your future.

Contact Schill Insurance today to renew your life insurance coverage — we’re here to help you protect what matters most!

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From supporting local organizations and charitable initiatives to sponsoring events and volunteering our time, we’re proud to have helped create meaningful impact where it mattered most. These efforts reflect our values and our commitment to building lasting community connections.

We’re grateful to support strong communities that make us all stronger, and we remain committed to continuing this work and finding new ways to support the people and places we call home.

Explore our 2025 Community Impact Report below

Schill Community Impact report 2025

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It rarely comes up during policy renewals and does not usually stand out on a declaration page, which is why it is often missed. Many property owners only become aware of the issue after a loss, when rebuilding costs exceed coverage limits and insurance payments fall short before repairs are complete.

With construction costs continuing to rise, labour shortages, updated building codes, and more frequent severe weather events, underinsurance is no longer an isolated concern. It affects homeowners, strata corporations, and commercial property owners across British Columbia, regardless of size or complexity.

This article outlines why underinsurance is so common in British Columbia, where it most often occurs, how it appears in real claims, and what property owners can do to reduce the risk of being under protected when it matters most.

Why Underinsurance Is a Growing Problem in British Columbia

British Columbia presents a complex and increasingly challenging insurance environment, particularly for property owners.

Over the past several years, rebuilding costs have risen faster than many insurance policies can keep pace with. Fluctuating material prices, shortages of skilled labour, ongoing supply chain delays, and stricter municipal and provincial building requirements have all driven construction costs higher. In many cases, these costs far exceed what property owners expect.

At the same time, many properties continue to be insured based on outdated information, such as original purchase assumptions, older appraisals, or coverage limits that are simply carried forward at renewal.

Insurance is not designed to respond to market value. It responds to replacement cost, meaning the cost to rebuild the structure as it exists today, under current construction standards and regulations. When coverage limits fall behind actual rebuilding costs, the resulting financial shortfall becomes the responsibility of the property owner.

The 5 Most Common Underinsurance Traps We See in British Columbia

1. Confusing Market Value With Rebuild Cost

This is the most common misunderstanding we see, and often the most expensive.

Market value is influenced by factors such as land value, location, and resale demand. Replacement cost is different. It reflects what it would cost to rebuild the structure today and includes materials and labour, demolition and debris removal, engineering and architectural fees, permits and inspections, project management, and current construction standards.

In many parts of British Columbia, land values have increased sharply while rebuild costs have quietly climbed beyond existing insurance limits. This creates a false sense of security. Coverage limits may appear adequate on paper until a loss reveals otherwise.

2. Outdated Building Valuations

A valuation completed three to five years ago often no longer reflects current rebuild costs.

Construction inflation does not move evenly. Certain components such as electrical systems, HVAC, fire protection, and structural materials have experienced much higher cost increases than others.

When insured values are not reviewed and updated regularly, coverage slowly erodes. Annual renewals can give the impression that coverage remains adequate, even as actual rebuild costs continue to move further out of alignment.

3. Underestimating By Law and Code Upgrade Costs

After a significant loss, buildings are typically required to meet current building codes rather than the standards in place when they were originally constructed.

This can result in substantial additional costs, including seismic upgrades, fire separation and suppression requirements, accessibility improvements, energy efficiency standards, and environmental remediation.

If by law coverage is limited or missing, these costs may not be fully insured, even when the physical damage itself is covered. This is a common and difficult issue, particularly for older buildings across British Columbia.

4. Deductible Shock, Especially for Strata Properties

High deductibles have become standard in strata insurance, particularly for water damage claims.

What is often misunderstood is how deductibles apply in real situations. Deductibles may be payable before insurance responds, responsibility can be charged back to individual unit owners, and deductible responsibility is not always clearly understood in advance.

When high deductibles are combined with underinsured building values, the financial impact increases significantly. Owners may face both uninsured loss portions and immediate out of pocket costs.

5. Co Insurance Penalties on Commercial Policies

Many commercial insurance policies include a co insurance clause that requires the property to be insured to a specific percentage of its true replacement cost.

If the property is underinsured at the time of loss, the insurer may reduce the claim payment proportionally, even for partial losses.

This often surprises business owners who assume co insurance only applies in total loss scenarios. In reality, it can significantly reduce claim payments on losses that would otherwise be manageable.

What Underinsurance Looks Like in a Real Claim

While no two claims are exactly the same, the pattern is often familiar.

A loss occurs, whether from fire, water, wind, or structural damage. Initial repair estimates come in higher than expected and continue to climb as the scope of work becomes clearer. Before rebuilding is finished, coverage limits are reached and insurance payments stop. At that point, property owners are left to cover the remaining costs themselves or delay reconstruction altogether.

Frustration is common in these situations and is something we regularly see once claims reach this stage. However, the insurance policy is functioning exactly as written. The issue is not that coverage failed, but that the coverage in place was never sufficient for the level of risk.

Why Saving Money on Insurance Often Costs More Later

Underinsurance is rarely intentional. In most cases, it results from a combination of pressure to reduce premiums, concern about over insuring, reliance on automated valuation tools, and a lack of regular, proactive coverage reviews.

Lower premiums can feel like a win until a claim occurs. When insurance is needed most, even small premium savings are quickly outweighed by uncovered losses, added financing costs, construction delays, and the stress that follows.

Effective insurance planning is not about purchasing more coverage than necessary. It is about structuring coverage properly, based on how losses actually occur and what it truly costs to recover.

How British Columbia Property Owners Can Reduce Underinsurance Risk

While underinsurance is common, it is not unavoidable.

Reducing risk starts with a few practical steps. These include reviewing replacement costs on a regular basis, understanding how deductibles apply in real claim situations, confirming that by law and code upgrade limits are adequate, and testing policies against realistic loss scenarios. Just as important is working with advisors who actively review coverage rather than simply processing renewals.

Insurance should evolve alongside your property, not fall behind it.

Why Claims Experience Matters

One of the most overlooked elements of insurance advice is claims experience, especially when coverage is tested under real loss conditions.

Policies that appear similar on paper can perform very differently when a loss occurs. Advisors who regularly handle claims understand where coverage tends to break down, where policy wording matters most, and where common assumptions fail. That insight plays a critical role in structuring insurance that is meant to protect real assets, operating businesses, and long term livelihoods.

Final Thoughts

Underinsurance does not announce itself. It often sits quietly in policies that appear reasonable until a claim brings the gap into focus.

In today’s British Columbia environment, assuming coverage is close enough is no longer a safe approach. Construction costs, regulatory requirements, and deductible structures have changed significantly. Addressing underinsurance proactively is almost always far less costly than discovering it after a loss has already occurred.

If you have questions about your coverage or want to better understand your risk, reach out to us before a loss puts that coverage to the test.

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