Jasper wildfire damage now estimated at $1.23B — and could go higher, insurance industry says
The devastating wildfire that struck the Rocky Mountain town of Jasper in July 2024 has left a trail of destruction, with the estimated cost of damages soaring to $1.23 billion. This staggering figure, released by the Catastrophe Indices and Quantification Inc. (CatIQ), represents a $350 million increase from the initial estimate of $880 million made in August.
The Insurance Bureau of Canada (IBC) has confirmed that the Jasper wildfire ranks as the second-costliest fire event in Canadian history, following the 2016 Fort McMurray wildfires, which caused $6.2 billion in damages. Aaron Sutherland, IBC’s vice-president for the Pacific and Western regions, attributed the increased costs in Jasper to the town’s unique geography and relative isolation.
The removal of debris from the 358 structures destroyed in the wildfire has proven to be a complex and costly process. Each structure’s debris must undergo testing for toxins, such as asbestos, before being transported to designated landfills. Some materials have to be hauled as far as 365 kilometers away to Edmonton, significantly adding to the overall expenses.
As the cleanup efforts continue, there are concerns that delays in rebuilding could further escalate costs. The Municipality of Jasper anticipates completing debris removal by mid-spring, but reconstruction cannot commence until the ground thaws and building permits are approved by Parks Canada. The IBC is working to coordinate efforts between insurers in Jasper and warns that a shortage of construction workers could impede progress and drive up expenses.
The Jasper Recovery Coordination Centre (JRCC), comprising representatives from the municipality and Parks Canada, is overseeing the rebuilding process. Contractors from across the country may be enlisted to supplement the local labor pool as the town progresses through the five rebuilding phases laid out by the JRCC. Currently in phase two, focused on site surveys and building plans, Jasper is gearing up for phase three, which will involve building applications and is slated to kick off in the near future.
Beth Sanders, Jasper’s director of urban design and standards, emphasized the importance of expediting recovery plans and phases to facilitate a swift and efficient rebuilding process. Despite the challenges posed by the wildfire’s aftermath, officials are dedicated to supporting residents through every step of the reconstruction journey. With a proactive approach and a commitment to collaboration, Jasper is steadfast in its mission to restore the town to its former glory.
