The High wood River are rivers waiting to flood you out! Alberta found that out for sure in June of 2013. The entire province will pay for the tragic loss of life and property for a long time. So, then why is there no flood coverage for home insurance in Calgary?
There Are Over 5 Billion Reasons!
There were tremendous losses to bother personal and public property due to the unprecedented amounts of water that descended on southern Alberta. If you allow Alberta the 3,645,257 people estimated in a 2011 census, the $5 billion overall recovery estimate equals almost $13.7 thousand per citizen. Of course, we are not personally on the hook for costs, and that amount will be divided between provincial, federal and municipal governments along with insurance agencies, it points to the enormous expense involved in cleaning up after a flood.
There were tremendous losses to bother personal and public property due to the unprecedented amounts of water that descended on southern Alberta. If you allow Alberta the 3,645,257 people estimated in a 2011 census, the $5 billion overall recovery estimate equals almost $13.7 thousand per citizen. Of course, we are not personally on the hook for costs, and that amount will be divided between provincial, federal and municipal governments along with insurance agencies, it points to the enormous expense involved in cleaning up after a flood.
There is no flood insurance in Alberta simply because only those people who live in flood-prone zones would be likely to purchase it. Hence, there would be a small amount of people among whom to spread the cost of claims. Therefore, the cost of flood insurance would be so high that it would become unaffordable.
How Bad Is It?
How Bad Is It?
Well, Canada is the only G8 country where homeowners simply cannot buy insurance against overland water. A business may be able to find a source of insurance and be willing to pay the price, but no citizen can buy private insurance against flooding.
It is called overland flooding because it refers to the water that enters a residence as a result of swollen streams, lakes, or rivers. Home insurance in Calgary may protect you against sewer backup to burst pipes - but not from overland flooding.
It is called overland flooding because it refers to the water that enters a residence as a result of swollen streams, lakes, or rivers. Home insurance in Calgary may protect you against sewer backup to burst pipes - but not from overland flooding.
This leaves Alberta's and all Canadians exposed, and there is no relief in the near future. Climate change may or may not be behind the Alberta floods, but flooding is increasing in frequency and severity. There were also floods in Toronto, Quebec, and Manitoba, and so without legislation the Canadian insurance industry is unlikely to take the risk.
The entire insurance industry is focused on the flooding issue, and the June floods have cost insurance companies $2.25-billion for commercial and governmental claims.
Solution?
Solution?
Under Canada's Disaster Financial Assistance Arrangements, the provincial and federal governments fill in the gaps in financial recovery. The insurance bureau of Canada (IBC) looks back to design the future, and without a comprehensive analysis of flood plains throughout Canada - and the U.S. for that matter, it has to look to present options. This includes increased deductibles, new products, and engineered payouts. The future does not appear to include flood coverage in home insurance policies for Canadians.
Lane's Insurance is a customer oriented, matter-of-fact insurance brokerage that believes service is still important to people. As proud members of the Independent Insurance Brokers Association of Alberta, Lane's works with numerous carriers to meet your insurance needs while maintaining competitive pricing. The buy private insurance against flooding.
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