Canada continues to experience an alarming surge in wildfires, with 2025 already shaping up to rival the devastation seen in 2023. From coast to coast, flames have consumed vast areas of forest, sending smoke across provincial borders and affecting everything from public health to travel plans. Ontario, in particular, has been grappling with the effects, especially in the north, where active fires and deteriorating air quality have become the norm. Even major urban centres like Toronto are feeling the impact of smoky skies and public event cancellations.
Are you protected against wildfires in Canada? Will your insurance policies cover your home and any travel disruptions that may occur? Let’s examine how the right home and travel coverage can protect you against wildfires.
Current Wildfire Situation in Canada (2025)
Canada’s wildfire season typically runs from May through October, but in recent years, the season has started earlier and lasted longer. The worst of it is being felt in the prairie provinces, like Saskatchewan and Manitoba, since late May. As of today:
- Over 2,800 wildfires have been recorded across the country.
- 7.2 million hectares of land have already burned.
- In Ontario alone, nearly 300 wildfires have been reported, with northern regions most affected.
- Emergency crews from across Canada and international partners, including the U.S., France, and Australia, have been deployed to help control the fires.
Toronto and southern Ontario have experienced days of poor air quality as smoke from northern fires and other provinces drifts, prompting warnings and precautionary health measures. What was one of the culprits this year? Lightning during our recent storms.
How Wildfires Are Affecting Ontario
1. Air Quality Concerns in Urban Areas
Even if fires are burning hundreds of kilometres away, the smoke can travel long distances. Toronto and other southern Ontario cities have faced multiple Air Quality Health Index (AQHI) advisories this season.
These advisories have led to:
- Outdoor event cancellations
- Reduced park and tourism activity
- Increased healthcare visits for respiratory issues
- Precautions for vulnerable groups, such as seniors and children
2. Tourism and Outdoor Recreation Disruptions
Ontario’s tourism industry, which had been rebounding after the COVID-19 pandemic, has taken another hit:
- Northern outfitters and guided wilderness tours are reporting cancellations.
- Provincial parks and campgrounds have enforced fire bans and, in some cases, full closures.
- Cities like Toronto and Ottawa have postponed or scaled back outdoor festivals due to smoke concerns.
3. Rising Insurance Costs
The wildfire risk has intensified the pressure on home and travel insurance markets:
- Wildfire-related payouts have increased significantly in recent years.
- Homeowners in high-risk zones may see higher premiums or limited coverage options.
- The Insurance Bureau of Canada (IBC) continues to work with the federal government on a national strategy, but there is no wildfire-specific insurance relief program yet.
Understanding Air Quality in Canada: What the AQHI Means
When wildfires are burning, the Air Quality Health Index (AQHI) becomes a critical public resource. It rates air quality on a scale from 1 to 10+ and helps Canadians make informed decisions about outdoor activity.
AQHI Scale and What It Means
| Rating | Risk Level | Recommended Action |
|---|---|---|
| 1-3 | Low | Ideal for outdoor activities |
| 4-6 | Moderate | At-risk groups should consider limiting strenuous activities |
| 7-10 | High | Everyone should reduce prolonged outdoor exertion |
| 10+ | Very High | Stay indoors; avoid outdoor physical activity |
What You Can Do During Poor Air Quality Alerts
- Limit outdoor exposure, especially exercise or prolonged time outside.
- Use a certified air purifier at home.
- Wear a properly fitted KN95 mask if going outside.
- Close windows and doors, especially if you’re in an area affected by drifting smoke.
- Check your local AQHI daily via Environment Canada’s website or apps like The Weather Network.
4 Consequences of Canada’s Wildfires
1. Hot and Dry Weather Ahead
Fire bans remain in effect across most provincial parks in Ontario. The increased dryness from the season not only fuels wildfire risk but also disrupts traditional summer activities, such as camping, fishing, and cottage trips.
2. Higher Cost of Living
Insurance companies have seen mounting losses due to wildfires:
- 2024 saw insured damages of over $3.5 billion nationally.
- Some insurers are adjusting their risk models, which may result in premium increases or coverage limitations, particularly in rural and northern communities.
3. Event and Flight Cancellations
Wildfire smoke has induced event and flight shutdowns due to poor air quality and poor visibility.
- Forced outdoor events to shut down across Ontario cities.
- Led to reduced zoo access, masks for theme park staff, and modifications to public services.
- Caused delays and disruptions at airports, even in cities far from the fire zones, due to poor visibility and rerouted air traffic.
4. Drop in Domestic and International Tourism
Smoke from Canadian wildfires continues to affect not only local tourism but also international travel. In 2023, satellite imagery showed smoke reaching Europe. In 2025, similar patterns are already being seen, with hazy skies in New York, Chicago, and even northern Europe, deterring international visitors.
To learn more about travel insurance coverage, please click here.
Does Your Home and Travel Insurance Cover Wildfire Damage?
Most homeowners’ and tenants’ insurance policies in Ontario do cover wildfire damage. It’s usually covered by both all-risks property insurance and the basic fire and extended coverage package. Here’s what you should look for:
- Fire and Smoke Damage: Standard in most property insurance policies.
- Mass Evacuation Coverage: Covers the cost of temporary relocation due to a mandatory evacuation.
- Contents Insurance: Protects your belongings inside your home or apartment.
- Travel Insurance: May cover trip cancellations or interruptions due to wildfires, but coverage varies. Always check the “known risk” clause.
If you’re travelling to or from the affected areas, or have plans to attend outdoor events–including sporting events, shows, and other activities–you’re bound to be affected in some way. If you live near wooded areas or travel frequently to wildfire-prone regions, consider:
- Reviewing your coverage limits.
- Repeatedly check the status of your flights or events.
- Asking about specific wildfire exclusions or caps.
- Adding travel interruption insurance if planning a summer getaway.
- Follow our wildfire prevention tips to maximize your safety!
Final Thoughts on Canada Wildfires: Stay Protected and Informed
Wildfires are becoming a growing concern across Canada, and Ontario is no exception. Whether you’re a homeowner in the north, a city resident in Toronto, or a traveller planning a summer escape, understanding the risks—and how your insurance can protect you—is more critical than ever.
At isure, our brokers can help you review and update your policies to make sure you’re fully protected—whether it’s your home, rental property, or summer travel plans. We’re here to answer all your wildfire-related coverage questions!
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