Too Catastrophic to Insure ?
Major flood events in Toronto in 2013, and in Calgary in 2014, which cost the insurance industry $1 billion and $1.7 respectively, triggered the provision of Overland Water (flood) coverage in 2015.
The cost of the recent flood in Abbotsford B.C., where covered by insurance, is $1 billion and counting. However, if the damages occurred in an area designated as being a flood plain, no insurance coverage would be available, because consistent, repeat flooding is predictable and therefore uninsurable.
One in ten homes in Canada is at high risk of flood, and between 6% to 10% of Canadians are “uninsurable” as a result. Currently, a federal task force has been working on a National Flood Insurance Program through the government to provide coverage in situations where it is unavailable through standard insurance markets. A report is due in the spring of 2022.