Anger flares in Fort McMurray

More than five months on, the slow pace of insurance payouts has riled residents

Insurance News

By Paul Lucas

The residents of Fort McMurray probably wish they could finally close the door on the devastation that struck their homes earlier this year – however, sadly, the after-effects of the wildfires continue to take their toll and are leading to ever-increasing anger among residents.

During the wildfires in May about 90,000 residents were forced to evacuate their homes, while more than 1,900 structures were destroyed and crude oil output was rocked.

Since then, the Red Cross estimates that around 80,000 have returned – however, they are struggling to deal with the costs of Canada’s most expensive disaster ever as they look to city officials and insurance companies to help them rebuild their lives.

According to a National Post report, progress is being slowed down by the unrushed pace of insurance payouts coupled with harsh winter weather which is ramping up construction costs and slowing progress.

Speaking to the publication, Kevin Lewis, a demolition company owner, noted that “people are mad and companies are mad”. He said “nobody trusts a word the city says.”

Even though the bulk of oil sand operations have returned to normal rates, just 184 development permits have been issued and only 30 houses have put frameworks in place, the report highlights.

In the National Post report, Marc Fortais, of Regional Municipality of Wood Buffalo, noted that frustration is easy to understand but that certain rules had to be followed for the city to process the rebuilding efforts properly.

“We hoped to have a ton of houses started and on the ground but we have had significant complexities,” he said.

It is expected that many residents will have to wait until next year for their homes to be rebuilt with daytime temperatures averaging minus 12 and potentially falling as low as minus 40. This means that concrete companies add a winter heat surcharge that can boost the costs of a house’s foundation by as much as 10%.

“Lots of people are frustrated with how it’s going. The rebuild is going slower than expected, I am not sure if it’s insurance issues or permits or a mixture of both,” added fire captain Damian Asher, who lost his home while battling the wildfire in another part of the city.

“People that are renting or living with friends are still sitting on the edge of not knowing whether they will be able to start rebuilding or not,” he added.

Related stories:
Bigger Fort McMurrays may lie ahead, research warns
Fort McMurray wildfire homeowners to get compensation
 

Keep up with the latest news and events

Join our mailing list, it’s free!