The wildfires burning across parts of Western Canada this summer are horrendous for countless reasons: the loss of property, impact on the environment, and stress on those forced to evacuate.

But there is also one other impact that is often missed – the impact on home insurance. This holds true for other natural disasters, not just wildfires. It could be floods, landslides, snowstorms, hail storms, tornadoes, and other such acts of nature.

Most home insurance policies do cover damage from forest fires or wildfires (although some may include a clause about whether the fire originated on your property). That means most of the victims in the devastating wildfires in Lytton, B.C. should be compensated as long as they had insurance.

But there are a few considerations. If you live in a wildfire zone, your premiums are likely to be higher due to the higher risk. That’s true for anyone living in an area with known natural risks and is just one of many considerations insurance companies make when assessing a new customer.

The problem arises when you try to purchase a new home insurance policy in an active wildfire zone. By the time an area is put under evacuation notice, it is too late. When a region is already on fire, the risk of property damage or loss becomes an almost certainty that no company wants to take on. Some insurance companies won’t finalize a policy if there are active fires within a certain distance – one company, for example, doesn’t offer wildfire protection if there is a fire within a 50-kilometer radius. In British Columbia this summer, that excluded many homeowners.

There is a well-known story of a woman in Okanagan, B.C. who was trying to set up condo insurance, but was delayed for weeks due to ongoing wildfires. An hour after the woman signed her new policy, another fire started. If she had delayed at all before signing, she would not have been able to get insurance.

The lesson here is to make sure you have the right policy in place protecting your home as soon as you can – delaying can cost you.

A beautiful, fresh coat of paint on the exterior of your house can give you major first impression points. In fact, a study by Consumer Reports found that exterior paint, including touch-ups, can boost the value of your home by up to 5 percent.

The main area to focus on if you have a small budget is the easy fixes: sections where the trim or molding is rotten or the paint has been chipped off. Small details make a big difference and pay dividends.

If you are planning to do a total redo, though, there are a few things to keep in mind. One way to think about it is following the 60-30-10 rule where a maximum of three different paint colours are used: 60 percent is the body of the house, (like stucco or brick), 30 percent is the garage doors and trim, and the last 10 percent is a pop of colour on the front door and shutters.

And if you’re debating what colour to paint your front door, choose black. According a Zillow Paint Color Analysis report which looked at photos of 135,000 homes to see how paint colours impacted sales, a black front door could increase the price of your home by 2.9 percent – they found that houses with dark charcoal, smoky black or jet black doors sell for an average of $6,271 more than expected.

On the flip side, that same study found that homes painted yellow on the outside sold for an average of $3,408 less than other homes. Play it safe with a solid neutral colour or, for the more adventurous, match the colour to the architectural style and era of the house.

There are a lot of different paths to financial freedom but one of the most tried-and-true is property ownership – and now, more than ever.

The first step, of course, is to own a property that you can rent out that is cash-flow positive. If you have a loft above a garage or an in-law suite in your garden (or the space to build one), perfect! If not, consider what type of AirBnB property you would be best suited to run – a cabin at a local ski resort? A waterfront property with lovely views? Executive stop-overs close to the city centre? Consider the profit potential, location and accessibility, and make sure to scope out the competition.

Once you have your property and the guests are starting to trickle in, there are a few things you can do to add value to your property and charge more per stay:

• Create an experience for guests: Be more than just a bed to sleep in and you will have guests flocking to you. Create a unique experience with fun things like having a mural painted on a blank wall for Instagram photos, a large hammock in the garden to relax in, a hot tub with a view, and other memorable draws.
• Add amenities: This doesn’t need to be costly. Small, thoughtful touches like a well-stocked cabinet with coffee and tea, hotel-size toiletries, a USD multi-charger, an iron, a hair dryer, and other must-haves add significant value. Don’t forget to advertise them!
• Make entertainment accessible: A Netflix subscription will go a long way to keeping your guests entertained while they relax. Board games, books, magazines, and a sound system are always good bets, too.
• Add a self-check in option: Many customers filter for this option so, if you don’t have it, you’ll be missing out. It requires installing a smart lock or a lock box, and a little bit of extra communication.
• Be creative: You can always list creative alternatives like a well-set up camper van or Airstream in your garden, a luxurious treehouse, or a converted boxcar – all of which are currently listed and usually fully-booked on Airbnb!

Remember to double check and follow all local guidelines and laws regarding short-term rentals before listing your property. Many places, for example, require a business license to operate an AirBnB.