In March, Canada’s federal budget announced the implementation of Canada’s first National Flood Insurance Program, which will work to protect Canadians at highest risk of flooding.
In response, Celyeste Power, president and CEO of the Insurance Bureau of Canada (IBC), issued the following statement:
“Today’s funding from the federal government will help ensure all homeowners, regardless of their risk, have access to affordable flood insurance. This is a major step forward, and critical to protecting homeowners across the country, even those at high risk of flooding.”
The national flood insurance program was created in collaboration with Canada’s property and casualty insurance industry, which means it incorporates input from the country’s major insurance providers. With this agreement, Canada joins the U.K., U.S. and most other G7 countries in providing a national flood insurance program.
Recommendations put forth by the Task Force on Flood Insurance and Relocation, which was created in 2020 and published a final report noting that more than 1.5 million households in the nation are highly exposed to flooding, resulted in the announcement. Flooding causes over $1 billion in damage annually to homes, properties, and infrastructure such as roads and highways, and is Canada’s greatest climate-related risk. Residential property owners bear approximately 75% of the costs of uninsured losses for flooding each year.
How is Canada working to help those at risk of flooding?
From six to 10% of homes are ineligible for flood insurance, says the IBC, and if weather patterns continue, that number will go up. The national flood insurance program will likely create a special pool for the most high-risk properties, with premiums capped or subsidized.
Special considerations are also being made for the potential strategic relocation of those at most risk.
Work is also underway on a Flood Hazard Identification and Mapping Program and a flood risk portal to make flood risk information more accessible to Canadians.
Do you live in a flood plain?
All Albertans should be aware of whether or not they live on a flood plain and the risk associated with their location. The Alberta Floods Portal allows you to look up the flood likelihood of where you live, and whether you reside in a fringe, floodway or hazard area. In Calgary, if you live on or closely adjacent to either of the Elbow or Bow Rivers, you are more than likely in a flood hazard area.
Although the area is somewhat sparsely populated, land before the Elbow enters the Glenmore Reservoir has a 95.8% chance of flooding in the next 30 years. Thankfully, upgrades to the Glenmore Reservoir dam greatly improved the dam’s flood resilience and should better protect Calgarians from incidences akin to the massive Alberta floods of 2013. The addition of 21 steel gates now allows engineers to hold back much more water from the Elbow, and the reservoir’s storage has increased by approximately 10 million cubic metres.
Ensure you have overland flood insurance
Overland flood insurance first became available in Canada in 2015, which was too late for those affected by the 2013 floods. Many policy-holders were left having to pay for major damage to their basements and foundations because water entered through windows and doors rather than sewers and drains.
Today most major providers offer flood insurance as part of an enhanced (or extended) water damage endorsement, or as a stand-alone addition to home insurance coverage.
It is also imperative to carry sewer back-up coverage on your home insurance policy for when the city’s sewers and pipes are overwhelmed. Installing a backflow valve to stop water from entering your home through the sewer system is highly recommended. Home insurance policy-holders may also qualify for subsidies for the installation of a sump pump or other approved mitigation device. Just ask your broker or provider what might be available.
Lane’s is your Alberta insurance ally
When it comes to your home insurance coverage, we at Lane’s are your allies in the insurance business. We are a leading Alberta-based brokerage, committed to providing outstanding customer service, advanced claims support, and access to the widest possible range of insurance products. We are locally owned and work for you, not for the insurance companies. Contact us at our Calgary, Banff, Edmonton and greater Alberta offices.
