The McDougall Creek wildfire burns on the mountainside above lakefront homes in West Kelowna, B.C., on Friday, Aug. 18, 2023. THE CANADIAN PRESS/Darryl Dyck
DDVANCOUVER - A lakeside British Columbia resort that was destroyed by a wildfire in 2023 says it can't rebuild due to "gaps" in its insurance coverage that it allegedly wasn't told about.Â
Lake Okanagan Resort and a related holding company say in a lawsuit filed last week in B.C. Supreme Court that its parent company had a "long-standing" relationship with Western Financial Group, the insurance firm named as a defendant in the notice of civil claim.Â
The lawsuit says most of the buildings and utilities at the resort were destroyed by a wildfire in August 2023, and the resort alleges it hasn't been able to rebuild due to a lack of insurance coverage.
The companies say the resort had several insurance policies, including coverage for its marina and gas bar, as well as commercial general liability coverage, a policy for the resort property itself and a policy for "environmental impairment liability."Â
But the lawsuit says no policy covered the utilities on the resort, leaving it unable to rebuild "due to the lack of water, sewage, and electrical services," while the surviving buildings can't be occupied due to the lack of utilities.Â
The lawsuit says Western Financial failed to advise the plaintiffs of "potential gaps" in its coverage, but the allegations have not been tested or proven in court and the insurer has not yet filed a response.
The property was destroyed by the McDougall Creek wildfire that swept down on West Kelowna on Aug. 17, 2023, setting streets of homes on fire and triggering a mass evacuation.
This report by °µÍø½ûÇø was first published Aug. 19, 2025.Â
°µÍø½ûÇø. All rights reserved.
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