The summer was punctuated by major storms, including heavy rainfall in both Edmonton and Toronto that wreaked havoc on infrastructure and homes.
Record-breaking rainfall in Edmonton saw 580 millimetres of rain as of the end of July, which easily beat the record set in 1953 with 417 millimetres from June through August. Rain forced Edmonton’s Heritage Festival to reduce its hours due to more high winds and wet weather as well as the cancellation or delay of the city’s Great Outdoors Comedy Festival, the K-Days carnival, a Post Malone concert and an appearance by the singer Kesha. The Post Malone concert on July 25 dropped an incredible 30 millimetres of rain from 9 p.m. to 10 p.m., with wind speeds averaging 39 km/h during that time. A maximum wind speed of 94 km/h was recorded by Environment Canada.
More recently, Toronto suffered major flooding during what is being termed as a “100-year storm.” The City of Toronto reports that tens of thousands of people lost power. The Don River burst its banks, closing portions of the Don Valley River, and homes flooded, trees and power lines came down, and both subway and Toronto island ferry service were suspended. The average rainfall for Toronto in August is roughly 78 mm of water, however on that day parts of Toronto received 150 mm in only a few hours.
Increased storms place stress on infrastructure
Repeated and consecutive rainfall events are placing increased pressure on Edmonton’s stormwater and power infrastructure, according to EPCOR. The utility provider noted that it is investing $1.6 billion over the next 20 years in flood mitigation infrastructure to help strengthen the city’s ability to manage severe weather.
“While the system is designed to manage typical rainfall at a city-wide level, we know extreme and prolonged rainfall can challenge or temporarily exceed capacity in localized areas,” EPCOR said in a statement.
Saturated ground conditions can further compound the problem. When the soil is already saturated, less rainfall is able to naturally seep into the ground, meaning more water enters the stormwater system, which can contribute to localized flooding.
The City of Edmonton said the storms in June have prompted it to apply for Alberta’s Hazard Assistance and Resilience Program (HARP). The program allows municipalities to seek reimbursement from the province for up to 90 per cent of eligible disaster-related costs.
June’s storms resulted in approximately $26 million in uninsurable losses and damage, according to the city. The Insurance Bureau of Canada reported that, as of mid-July, Edmonton’s storms had resulted in approximately $230 million in insured damages since May.
“The city continues to assess the impacts from July storms and will submit further HARP applications by the end of August,” the city said. “Where possible, the city has leveraged existing warranties and insurance.”
Toronto’s infrastructure is also under scrutiny, says the Canadian Underwriter. The Institute for Catastrophic Loss Reduction (ICLR) has been critical of Toronto’s approach to urban flooding for 15 years, causing the City to move toward assessing flood risk strategically across the GTA rather than only responding specifically to where the most complaints were generated.
Toronto’s Basement Flooding Protection Subsidy Program is another example of proactive action in the city.
The program was recently expanded to reimburse more flood-protection measures at higher amounts and now covers a plumbing assessment for preventative measures such as a backwater valve.
The heavy cost of inaction
The Insurance Bureau of Canada IBC) says that the cost of inaction on climate change adaptation is too high, threatening the economy and Canadians’ well-being. Sixty percent of Canada’s core public infrastructure is owned or maintained by municipal governments, with 35% of those being in fair, poor, or very poor condition.
They have determined three different types of adaptation:
- Grey: Refers to building physical infrastructure, such as dikes and sea walls, and using fire-resistant building materials.
- Green: Refers to protecting, strengthening and modifying natural systems that can calm flooding, such as wetlands, forest turnover rate, and soil nutrition.
- Soft: Refers to the legal, socio-cultural, political and financial management policies and systems that enable adaptation.
Public Safety Canada estimates that every dollar invested in mitigation saves $3 to $5 in recovery costs. Communities have seen both cost-savings and co-benefits from implementing adaptation measures.
How insurers are helping
The IBC highlights the work being done by insurers in Canada and around the world to understand and respond to the changing climate. Insurance professionals are on the front lines of documenting these changes, seeing firsthand the growing costs associated with flooding and other severe weather events.
As Canadians face new and evolving risks, insurers have an integral role to play in developing innovative insurance products providing appropriate coverage. They can also help educate homeowners, businesses and governments about practical ways to adapt to climate-related risks and reduce the potential for damage.
Canadian insurers took an important step in this direction in 2015 when they first introduced overland flood insurance for homeowners. The most recent market survey available at the time, conducted in early 2018, found that:
- 21 insurers, representing approximately 82% of Canada’s residential property insurance market, were offering overland flood insurance.
- Approximately 35% of properties across Canada had overland flood insurance coverage.
Despite these advances, insurance may not be affordable or even available for properties considered to be at the highest risk of flooding. To address this gap, a National Flood Program is currently in the works. Insurers and the federal government have been working together on solutions designed to protect Canadians who are particularly vulnerable to flooding while ensuring that affordable coverage is accessible.
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.
