For many Albertans, and especially Calgarians, the memories of the devastating 2013 southern Alberta floods remain sharp in our minds. Sustained heavy rains over several days on the Rocky Mountains’ snowpack caused both the Elbow and Bow Rivers to overflow. At their peaks, the Elbow’s inflow measured at 1,240 cubic metres per second, or 12 times its normal rate, and the Bow’s inflow measured at 2,400 cubic metres per second, or eight times its regular flow rate. There was as much as $6 billion in financial losses and property damage across southern Alberta, with insured losses reaching approximately $1.74 billion.
A total of 32 states of emergency were declared and over 100,000 people evacuated from their homes.
Since then, Calgary and Alberta have made great strides in becoming more flood resilient. Significant investments in infrastructure, such as new gates on the Glenmore Dam, reduced Calgary’s flood risk by 55%. The completion of the Sunnyside flood barrier and Springbank Off-Stream Reservoir in 2025 and further reduced Calgary’s flood risk by a total of 70%.
Unfortunately, many who sustained damage found that they were not covered through their home insurance. At the time overland flood insurance simply didn’t exist. Standard policies excluded overland flooding, defining it as uninsurable or requiring special endorsements that were not widely available at the time.
Fortunately, however, the way flood protection works in Canada has evolved dramatically over the last decade. According to the Insurance Bureau of Canada’s July 2026 report, The State of the Flood Insurance Market in Canada, what was once a major gap in property protection has evolved into a highly accessible and competitive system — much to the contrary of what insurance companies once believed. Here are some of the main points provided in the IBC’s report.
- Flood insurance access has improved greatly
Back in 2013, overland flood insurance, which, technically, is coverage for water that enters a home from overflowing rivers, lakes, or sudden heavy rainfall, was virtually non-existent for Canadian homeowners. Most water damage claims were strictly limited to sewer backups or internal plumbing failures.
Today, things have completely turned around:
- Approximately 94% of residential properties across Canada are now eligible for overland flood insurance from private insurance carriers.
- In 2017, only 26% of Canadian households carried overland flood protection. By 2023, that number reached 71%.
- More than 30 insurance companies now offer dedicated flood coverage, including the providers we at Lane’s work with.
- Over the last seven years, the number of properties considered uninsurable for overland flood dropped by nearly 45%, leaving roughly 6% of Canadian households in high-risk zones without traditional private coverage options.
- A national flood insurance program has been studies and will now be implemented in Canada. It will likely create a special pool for the most high-risk properties, with premiums capped or subsidized.
- Protection is affordable
Advancements in technology have fundamentally changed how insurers view the risk of overland flooding and its cost.
Approximately 88% of overland flood policy endorsements cost $300 or less per year, says the IBC’s report, affordability driven by massive private-sector investments in modern technology. Insurers now use high-resolution, property-level mapping, precise elevation data, and advanced catastrophe modelling. Instead of broadly charging higher rates across an entire postal code, insurance companies can now evaluate risk down to the specific type of structure. For the vast majority of Albertans, adding overland flood protection to a standard home insurance policy is both straightforward and cost-effective.
- Risk is concentrated in certain areas
While 94% of Canadian homes can easily access flood coverage, flood risk itself is not evenly spread. Water damage remains Canada’s costliest climate peril, representing nearly 39% of all most devastating insured losses nationwide.
What is important to note is that approximately 2% of residential properties account for more than 50% of Canada’s total potential flood losses.
For households located directly in extremely vulnerable floodplains or low-lying river valleys, private insurance remains difficult or impossible to secure. In these cases, insurance alone cannot solve the problem. Long-term structural solutions are required, such as community berms, floodways, and government-backed high-risk insurance programs, such as Canada’s national flood insurance program.
- How to protect your home and property
While community-level infrastructure plays a major role in managing severe river flooding, individual homeowners have significant power to reduce their personal flood risk. Taking proactive steps not only protects your family and belongings, but it can also make your policy more affordable and also lower your deductible.
Here are some important actions Alberta homeowners should consider undertaking:
- Standard home insurance policies do not automatically cover overland flooding or groundwater seepage. Ensure you understand the difference between sewer backup coverage and overland flood coverage, as both are typically added as separate endorsements.
- A sewer backwater valve stops municipal wastewater from backing up into your basement during heavy rainstorms. Many municipalities offer rebates or incentives for installing a backwater valve.
- If your home relies on a sump pump, test it regularly and consider installing a battery-powered backup system. Summer power outages during severe thunder events are common, and a secondary power source will keep your basement dry if there is a blackout.
- Make sure your drainage is good. Ensure your soil and landscaping slope away from your foundation’s walls by at least six feet. Also extend your downspouts so rainwater discharges at least 1.5 meters away from your house.
- Keep window wells and gutters free of debris.
Supporting Albertans with comprehensive home insurance solutions
Homeowners looking for tailored home insurance coverage can turn to us at Lane’s Insurance. We are a locally owned brokerage specializing in providing advanced claims support, personalized customer service, and access to a wide array of home insurance products. With offices in Calgary, Banff, Edmonton, and across Alberta, Lane’s works for your rather than the insurance companies and will work hard to find you the very best coverage at the very best price.
