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Insurance Considerations in Light of Recent Floods


Environment Canada reports more than 100 millimetres of rain covered the Fraser Valley City of Abbotsford in November. The surrounding area was affected too. Flood warnings were issued in the same week for Coldwater, Coquihalla, Nicola and Tulameen rivers. Public Safety Minister Mike Farnworth stated the province was prepared to implement Alert Ready, a public warning system that sends emergency notifications directly to cellphones1.

In the same month, Environment Canada meteorologist Rodney Barney tweeted that the community of Port aux Basques located in the southwestern tip of Newfoundland and Labrador experienced approximately 50 millimetres of rainfall overnight.2

The Insurance Bureau of Canada calculated the insured damage caused by the flooding in B.C. reached $450 million, calling it the “most costly severe weather event in the province’s history.”3

Prior to the floods, wildfires in the province caused nearly $155 million in insured damage. Severe weather conditions are expected to increase over the years, so property owners must educate themselves on the insurance options available to them in the case of a crisis.

You might be surprised to know that most home insurance policies don’t cover loss or damage caused by overland water, or fresh water flooding. Therefore, it is important to review your policy to determine whether or not you’re protected against flood damage.

  • Because flooding is becoming a rising issue in Canada, the Canadian government created a task force specifically for exploring the possibility of a national flood insurance plan. Currently, if you haven’t requested flood coverage, you aren’t protected in most cases. Instead, flood coverage is often considered an addition to your policy.

When it comes to flood insurance, the level of flood risk in your area determines your premium amount. If you live in a very high-risk area, home insurance providers may say you aren’t eligible for coverage or may charge you a higher premium. This may affect your deductible and coverage limit. This is where the help of an insurance broker may be needed. A broker can help you shop around and gain different perspectives on what coverage is available to you. While flood insurance isn’t mandatory for property owners, you should seriously consider it even if your risk is relatively low.

Why You Need NFP by Your Side

NFP offers stand-alone primary and excess coverage for flood-related damages and losses. It’s important to consult with us for a personalized assessment of what coverage is available in the case of flooding. Many property owners aren’t fully aware of the details regarding their property insurance. While most insurance products may seem similar in price and function, insurance providers are very different when structuring a policy.

At NFP, we know there’s no one-size-fits-all insurance policy, so it is important to consider a relationship with an expert who can investigate and bring to the surface the most trusted insurance policy coverage to meet your unique needs. We’re not only responsible, but we’re also responsive.

[1] For more information, visit Canadianunderwriter.ca.

[2] For more information, visit Canadianunderwriter.ca.

[3] For more information, visit CBC.ca.

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