The estimated cost of wildfire damage in the Rocky Mountain town of Jasper has ballooned to $1.23 billion, partly because the municipality’s relative isolation is making it more expensive to remove debris, say insurance industry officials.
The new cost estimate for the July 2024 wildfire, calculated by the Catastrophe Indices and Quantification Inc. (CatIQ) and released Wednesday, is $350 million higher than August’s initial estimate of $880 million.
And the figure is backed up by the Insurance Bureau of Canada (IBC). The bureau says the Jasper wildfire — which destroyed one-third of the town’s structures — is the second-costliest fire event in Canadian history, after the 2016 Fort McMurray wildfires that left $6.2 billion in damages.
“We have seen increased costs in Jasper due to its unique geography in the province,” said Aaron Sutherland, IBC’s vice-president, Pacific and Western.
“We have to move materials further than you would if this event happened in Edmonton, Calgary or somewhere near those communities.”
As well, debris from each of the 358 destroyed structures needs to be tested for toxins, including asbestos, Sutherland said. “That is adding increased costs,” he said.
After testing, most debris is loaded into trucks and dropped off 75 kilometres east of Jasper at the West Yellowhead Regional Landfill, just outside the town of Hinton, Alta.
But Sutherland added that some material has to be transported as far away as Edmonton, 365 kilometres east.
Delays could further increase costs
Sutherland said insurance costs could continue rising, especially if there are rebuilding delays.
The Municipality of Jasper says debris removal is expected to be completed by mid-spring. Reconstruction can begin once the ground thaws and building permits have been approved by Parks Canada.
The IBC, an industry association representing 66 Canadian home, car and business insurance companies, is helping co-ordinate efforts between insurers in Jasper. It warns that a lack of construction worker availability could slow down rebuild efforts and increase costs.
“When we think about the next steps, the big challenge could be from just the labour pool in and around Jasper and the number of qualified home builders and contractors to rebuild this community,” said Sutherland.
Following the approval of new rebuilding regulations in Jasper, construction crews face challenges as the damaged townsite is rebuilt into a community that will be more resistant to wildfire. The CBC’s Acton Clarkin reports from Jasper.
The Jasper Recovery Coordination Centre (JRCC), made up of representatives from the municipality and Parks Canada, is tasked with keeping the rebuild on track. It says contractors from all around the country could be brought in to supplement the labour pool.
There are five rebuilding phases laid out by the JRCC. The town is currently in phase two, which is focused on site surveys and coming up with building plans.
Beth Sanders, Jasper’s director of urban design and standards, has been working alongside the JRCC on these efforts. She said officials try to work quickly through recovery plans and phases but noted that operations are constantly being updated.
“We’re there to help people with all of the minutiae of the decisions that they have to make and answer as many questions as possible so that when they make an application, it’s as complete as possible,” she said. “Because what we know at our end is when an application is complete, we can move it through more quickly,” she said.
Phase three of Jasper’s rebuilding plan will focus on building applications and is expected to get underway in the coming months.