The status of the Jasper wildfire rebuild

Most properties destroyed by the wildfire that demolished one-third of the picturesque community of Jasper, Alta. last summer have now received an approved demolition permit from Parks Canada, Insurance Bureau of Canada (IBC) reported Wednesday.

A total of 92.5% of the properties have received the permits, which are reported before contractors can begin to remove debris and prepare insured properties for reconstruction, IBC says in a press release Wednesday.

IBC told Canadian Underwriter in September 2024 that all three levels of government (federal, provincial and municipal) were discussing how to streamline the Jasper rebuild, which has a complex, 100-year leasing arrangement and stringent rules around development on Parks Canada land. Because of numerous unresolved issues around rebuilding on Parks Canada land, the reconstruction effort is likely to be a multi-year project, IBC’s national director of consumer and industry relations, Rob de Pruis, said at the time.

IBC now says more than 60 residential properties and most commercial sites in the town have been completely cleared and are awaiting final testing and sign-off from Parks Canada. Following approval, owners of these properties can apply for reconstruction permits (also from Parks Canada) to begin rebuilding.

Insurers expect to have nearly all debris removed from residential properties by May 1, so that rebuilding can begin. The timing of reconstruction efforts will depend on how quickly property owners apply for and receive approval of development or reconstruction from Parks Canada, IBC says.

“Several property owners have yet to apply for a demolition permit and are strongly encouraged to do so, in order to commence the recovery process,” IBC says in the release. “Insurers appreciate the efforts of Parks Canada to expand its capacity and expedite the permitting process.”

 

Billion-dollar event

The latest loss estimate for the wildfire, which was active between July 22 and Aug. 17, 2024, is $1.23 billion, according to Catastrophe Indices and Quantification Inc. (CatIQ).

This is up from the $1.05 billion loss estimate issued 90 days after the event, and an initial estimate of more than $880 million. The new total covers commercial and residential property and vehicle claims. CatIQ says commercial changes led to the increase between the $1.05 billion and $1.23 billion estimates.

“The Jasper wildfire is the second costliest wildfire on record for Canada, behind the 2016 Fort McMurray wildfire which, at the time, generated insured losses of $3.64 billion and 33,000 personal property claims,” Laura Twidle, CatIQ’s president and CEO says in a statement. “Though the Jasper event resulted in only about 1,700 personal property claims, the sums are much larger — on average more than four times the amount of the claims from Fort McMurray.

“This underscores the reality that a fire does not need a massive footprint to cause significant losses.”

Alberta’s insurers have been on the ground in Jasper since the first day of the fire and continue to provide insurance support to residents who lost their homes.

Insurers, in partnership with the Canadian Red Cross, also coordinated and paid for the removal, de-gassing and proper disposal of about 2,300 fridges and freezers ruined by food spoilage due to prolonged power outages during several weeks of the evacuation, IBC reports. “This coordinated residential bulk-debris-removal program is helping to reduce costs and speed up recovery in the community.”

“There’s still a lot of work to do and rebuilding will take time, but there is light at the end of a very long tunnel for Jasper residents who lost so much in the fire,” says Aaron Sutherland, IBC’s vice president of the Pacific and Western regions.

Insured damage caused by severe weather events surpassed $8.5 billion for the first time in Canadian history in 2024. In less than a month last summer, Canada recorded four new Top 10 costliest events: the Calgary hailstorm ($3 billion in losses), remnants of Hurricane Debby in Quebec and beyond ($2.7 billion), Jasper wildfire ($1.2 billion) and southern Ontario flash flooding ($940 million).

 

Feature image: Work continues to assess, repair and rebuild as some residents return to Jasper, Alberta on Monday August 19, 2024. Wildfire caused evacuations and widespread damage in the National Park and Jasper townsite. THE CANADIAN PRESS/Amber Bracken