HALIFAX, May 26, 2003 – The rain storms that swept across Atlantic Canada on April 1st caused $14.3 million in insured damage to cars, homes and other properties.
“It was a devastating week,” said Paul Kovacs, Senior Vice-President and Chief Economist, IBC. “This single event resulted in the most insured damage in Atlantic Canada history.”
In Nova Scotia, where more than 100 millimetres of rain fell, insurance companies reported damages totaling $11.1 million. The bulk of the claims are for personal property damage as a result of water backing up into basements. Losses in New Brunswick, Newfoundland and Prince Edward Island totaled $3.2 million.
“Property damage is always a difficult thing to deal with, but thankfully many Nova Scotians had the proper insurance coverage to protect them from the results of this storm,” said Mr. Kovacs. “This event reinforces the basic concept of insurance – to provide financial peace of mind in a world filled with risk.”
The insurance industry is accustomed to helping people put their lives back together after natural disasters. In September 2001 floods in Atlantic Canada resulted in insurable losses of $6.1 million and the damage from the 1998 ice storm, in Eastern Ontario and Quebec, totaled $5.5 billion with the insurance industry picking up $1.7 billion of the total cost.
Natural disasters are hitting Canadians with increasing frequency and severity. “While we can be proud of the way we respond to natural disasters, there are steps that can be taken to ensure communities are better prepared to withstand the effects of these disasters,” Mr. Kovacs said.
IBC’s new national Foundation for the Future program recognizes the efforts of communities to manage exposure to natural disasters, extreme weather and weather-related events. IBC is working with all levels of government to create a culture of preparedness and all are embracing the need for everyone to be better prepared.
“By making the investment now to manage exposure to natural disasters, extreme weather and weather-related events, we can reduce the risk and severity of future damage,” said Mr. Kovacs.
Insurance Bureau of Canada is the national trade association of the private property and casualty insurance industry. It represents the companies that provide more than 90 per cent of the non-government home, car and business insurance in Canada. To view news releases and information, visit the media section of our web site at www.ibc.ca.