In BCREA’s June 2017 eBulletin, the Insurance Bureau of Canada’s Aaron Sutherland (Vice-President, Pacific), explained that property owners need to take the initiative to inquire about overland flood insurance and how to reduce flood risk.
Overland flooding occurs when a large amount of rainfall or snow melt causes a large body of water to overflow onto dry land. Home insurance in Canada hasn’t traditionally covered losses or damage caused by such events until two years ago. Since then, several property and casualty (P&C) insurers have introduced overland flood insurance products which, while new to the market, provide homeowners with a new level of financial protection. Flood insurance may not be available everywhere or for every type of flooding (for example, it’s not available for coastal flooding), but it’s gaining traction as more insurers add it to their portfolios.
About 40% of British Columbians have already purchased some form of flood insurance. This is encouraging, especially when you consider the lack of a financial safety net that otherwise exists when a flood occurs. Government disaster assistance is strictly intended to replace or restore essential property. It doesn’t help to replace personal items like bicycles, jewelry, and artwork, or if a secondary home is damaged.