B.C. resort destroyed in the 2023 Okanagan wildfire files lawsuit over insurance “gaps” 

August 19,2025

RED FM News Desk

A lakeside resort in British Columbia, destroyed by a wildfire in 2023, claims it cannot rebuild due to “gaps” in its insurance coverage that it alleges were not disclosed. 

Lake Okanagan Resort and a related holding company filed a lawsuit last week in B.C. Supreme Court, stating that its parent company had a long-standing relationship with Western Financial Group, the insurer named in the civil claim. 

The lawsuit notes that most of the resort’s buildings and utilities were destroyed by the McDougall Creek wildfire in August 2023. The resort says it has been unable to rebuild because its insurance did not cover key infrastructure. 

The companies had several insurance policies, including coverage for the marina and gas bar, commercial general liability, the resort property itself, and environmental impairment liability. However, none of the policies covered utilities, leaving the resort without water, sewage, or electrical services, and rendering surviving buildings uninhabitable. 

The lawsuit alleges that Western Financial failed to inform the plaintiffs of these potential coverage gaps. These claims have not been proven in court, and the insurer has not yet responded. The wildfire also destroyed homes in West Kelowna on August 17, 2023, prompting a large-scale evacuation.