Fire department fees and home insurance coverage: what you need to know

This article has been updated from a previous version.

A fire at your home is devastating enough, but for some Canadians, the shock doesn’t end when the flames are out.

Most cities and towns in Canada fund fire departments through municipal budgets. This means when residents pay property taxes, they’re also covering the cost of firefighter salaries, equipment, and fuel should a fire break out in their home.

But in some municipalities, residents are charged additional fees for fire service, even on top of their property taxes. For instance, in places like Alberta’s Lacombe County, these costs can vary widely depending on where you live and they may affect what your home insurance will cover.

Here’s what you need to know.

How fire department fees work

Most Canadians contribute to fire services through their property taxes. This funding model covers firefighter salaries, equipment maintenance, and operational costs. However, it's not the only system.

In some municipalities, particularly in rural or less populated regions, residents pay fees for fire service on top of their property taxes. These areas may rely on volunteer-run fire departments and use a "fee-for-service" model to cover the costs of responding to an emergency. 

This can include charges for:

• The number of trucks and firefighters deployed.
• The hours spent at the scene.
• The specific equipment used.
• The amount of water or foam concentrate applied.

These fees are not paid upfront. Much like an ambulance ride, you receive a bill after the service is complete, which you are then responsible for paying.

Does home insurance cover fire department fees?

Suzanne Cardinal, commercial lines manager at Ontario West Insurance Brokers, says home insurance will cover fire department deployment costs.

“Virtually every insurance policy, whether it’s commercial or personal, has some provision for payment of fire department fees,” she says.

Even if you don’t pay those fees upfront, Cardinal adds, your home insurance policy would typically cover both the fire damage and the fire department charges. However, coverage limits can vary, and, in some cases, they may fall short of the actual cost.

Read more: What to know about wildfire season and insurance

How much can firefighting actually cost?

Deployment fees alone can cost hundreds of dollars, and firefighting expenses can escalate quickly. For example, in a notable 2021 case in Alberta’s Beaver County, a couple faced more than $62,000 bill after a fire on their property. Their home insurance policy covered only $10,000.

This kind of financial exposure isn’t limited to isolated incidents. For instance, as of 2024, the Rural Municipality of Corman Park notes that the Saskatoon Fire Department charges $1,090.23 per unit for the first hour of service and $272.56 per unit for every additional 15 minutes, with a maximum charge of $30,000.

Firefighting fees can vary drastically from region to region. How a local municipality sets up its fee structure, the remoteness of a particular area, and the cost of operating the local fire department can all play a role. 

In many rural areas, fire departments are entirely volunteer-run, in contrast to the all-professional forces seen in larger towns and cities.

Related: Northern Ontarians pay up to 80% more for home insurance than the rest of the province

Will my home insurance rate be affected by firefighting fees?

While insurance companies may cover most firefighting fees, Cardinal says the process can still affect a person’s home insurance rates.

“If you live in a municipality where those fees are charged, and insurance companies have to pay them out — that increases how much the insurance company is paying out every year,” she says. In turn, insurance companies may charge higher premiums to recoup that loss.

In cases where a fire department is called to an incident with little damage, Cardinal says a municipality that collects a firefighting fee might cost a client their claims-free home insurance discount, even if there isn’t any damage.

What is clear is that fire department fees are paid after a call is complete, not before. Cardinal compares it to the costs for ambulance rides where a patient gets a ride to the hospital, receives the bill, and then (if possible) makes a claim for it to be covered under their medical insurance.

She says there isn’t much a consumer can do if they happen to live in a municipality with a fire department fee model.

“If you have a fire, you have a fire,” Cardinal says, “and you’re going to call the fire department. The consequences of that action [can] vary by where you live. You might get a bill, you might not — but you might want to find out beforehand.”

Read next: One home insurance claim could up your premium by 20%, says Rates.ca report

How to protect yourself 

Being proactive is the best way to avoid a surprise bill. Here are actionable steps you can take to understand your risk and make sure you're protected. 

1. Review your policy documents: Look for a section within your policy called "Additional Coverages" or "Extensions of Coverage." This is where you will typically find details on fire department service charges. 
2. Note the coverage limit: Pay close attention to the maximum amount your insurer will pay. Is it a set amount like $10,000, or does it cover the "reasonable" costs without a specific cap? 
3. Contact your broker or insurer: The simplest way to get clear answers is to ask. Call your insurance representative and ask these specific questions: 

• Does my policy cover fire department service charges? 
• What is the coverage limit for these fees? 
• Is this limit per incident or per year? 
• Are there any circumstances where these fees would not be covered? 

While you can’t always control where you live or the fee structures in place, being proactive about your coverage can provide peace of mind when it matters most. After all, when an emergency strikes, the last thing you want to worry about is the bill. 

Learn more: How to protect your home from severe weather