Residents of the province of Saskatchewan will be glad to hear that select insurers operating in the region will be offering overland flooding insurance packages – though some conditions apply.
“As our climate has changed we’re seeing more and more extreme weather events happening more and more often, so insurers are adapting to what we call the new weather reality,” said
Insurance Bureau of Canada (IBC) director of government relations Aaron Sutherland.
Learn more about overland flooding insurance here.
Sutherland told CBC that not all customers will be eligible for overland flooding insurance, specifically those at highest risk of the disaster. He, however, confirmed that about 90% of homeowners will qualify for the coverage.
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“Insurance is for unforeseen and unpredictable risks. But if you live right in the river valley, beside the creek that is known to overflow year after year, well that’s a more predictable risk,” Sutherland explained.
Although there will be customers who will not make the cut, Sutherland offered reassurance that the IBC is working with all levels of government to create a public-private partnership that could provide some financial assistance.
The decision of Saskatchewan’s insurers to offer overland flood insurance came after water-related damages significantly jumped to over $1 billion annually since 2015. According to the IBC, water damages are currently the number one source of insurance claims in the country.
“When you think about the province being just over three per cent of Canada’s population, it actually accounts for over 10 per cent of the insured loses,” Sutherland elaborated. “You’re certainly punching above your weight class.”
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