Insurance Bureau of Canada reminds consumers overland flooding not covered by insurance
CALGARY, June 14, 2007 – Insurers have responded quickly to help policyholders in the wake of the severe storms that swept through Alberta last week. Calgary residents and insurers are now dealing with the damage caused by the storms and flash flooding that followed on Tuesday, June 5.
“In Calgary alone, there have been 3,094 insurance claims so far as a result of the storms, and insurers expect to pay $42 million to cover these claims,” stated Jim Rivait, Vice-President, Prairies, NWT and Nunavut, Insurance Bureau of Canada (IBC). “When including claims from Edmonton, the numbers rise to 3,447 claims and an expected $48 million in payouts. The insured damage has been mostly sewer back-up in homes, and some auto claims.”
Residents are reminded that damage caused by overland flooding and seepage cannot be covered by home insurance. Generally, overland flooding is only a risk for the small percentage of the population who live in a flood plain, and since the purpose of insurance is to spread risk amongst many policyholders, flood insurance for those at risk would be unaffordable.
“Insurance Bureau of Canada (IBC) urges homeowners to be patient during the claims process,” Rivait said. “The booming economy in Alberta has resulted in a labour shortage that impacts residents particularly in times like this, as it can be difficult to find contractors.”
Rivait added: “The provincial government has now officially declared the storm a disaster. The industry will be working closely with Alberta Disaster Services, and we expect that everyone with insured or uninsurable losses will be taken care of.”
About Insurance Bureau of Canada:
Insurance Bureau of Canada is the national trade association of the private property and casualty insurance industry. It represents more than 90% of the non-government home, car and business insurance in Canada. For more information, visit www.ibc.ca.