The insurance broker for Lake Okanagan Resort is denying claims made in a civil suit that blames the company for a lack of restored water and sewer services after the resort burned down in the 2023 wildfire.
Lake Okanagan Resort was destroyed after the McDougall Creek wildfire ripped through the Central Okanagan in August 2023. Rebuilding at the resort has been delayed as there is no access to water, sewer or electrical services.
The resort alleges that Western Financial breached its duties when it “failed to comply with the standard of care expected of a reasonable and prudent insurance broker.”
Western Financial Group stated in a response to the civil court filing by Lake Okanagan Resort that it has no duty of care regarding the company that actually provides water services.
The resort and its subsidiary, 1782 Holdings Ltd., filed a civil suit against Western Financial and a second company, the documents state, “whose exact identity is unknown to the plaintiffs,” on Aug. 15, 2025.
The resort and 1782 Holdings claim that, although the resort owned and operated strata properties and the utilities for them, 1782 Holdings owns the underlying rights and the water and sewage services locate on the property.
Western Financial alleges that it held only a contract with Lake Okanagan Resort and not with 1782 Holdings, and therefore had no role in ensuring the water and sewage services were insured. The response documents also claim the resort failed to properly disclose all the relevant information for Western Financial to allow proper coverage.
Although the resort is looking for relief, citing damages for lost income, the loss of value of the resort, and losses arising from the fire. Western Financial said it is opposed to the request.
None of the allegations has been proven in court.