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If possible, assemble any documentation related to your property and belongings (proofs of purchase, photos, receipts and warranties) to share with your insurer.

Once you have reported a loss, you will be assigned a claims adjuster. This could take some time, given the sheer number of claims.

Q: What effect will the fire have on the insurance industry?

A: Kee: “Our industry is well-capitalized for these types of events. This is what we plan for and it’s what we’re here for. It’s too early to tell the exact level of damage on the ground, but we can say that no one event will lead to an automatic increase in premiums. There are many factors. We have a competitive market so insurers will have different exposures during different events. Consumers may be in a position where they also want to shop around.”

Q: This is the third major disaster in Alberta over the last several years. What will be the impact on premiums?

A: Adams: “The single largest expense faced by every single insurer is claims. They really are the predictor of what future trends in cost for the premiums that people pay will be. While we can’t predict what’s going to happen in the future, we can look at what’s happened in the past. In the past, traditionally, when you see long-term trends in claims, premiums lag behind those long-term trends. If you see claims going up year over year, it’s likely that premiums will follow. As claims start to subside, there’s a lag before you see insurance rates come down in response. Globally, these type of events are happening with greater frequency and severity. Any Albertan who owns a home or has a tenant’s policy will have likely seen an increase in their insurance rates over the last two or three years.”

Q: So homeowners should expect rates to go up after this?

A: Adams: “The short answer is we don’t know. Individually, insurers are going to make those decisions. You could have a company who has seen because of the claims collectively they have had over the last number of years, you will some companies potentially look for premium increases in response to that. You’ll also have companies for whatever reason their customer base not as affected by the overall trend that we’re seeing, so there wouldn’t be the cost pressures.”

bmah@postmedia.com

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