With New Brunswick’s capital Fredericton still reeling from the Easter weekend flooding, one insurer has reportedly been canceling home insurance policies in the area.
Steve Rogers said that his insurer, Economical Insurance, will no longer cover his home, because the company is no longer writing policies for a “high-risk area” like Fredericton.
CBC News reported that the city of Fredericton is experiencing a second straight year of record-breaking flood levels. However, the vast majority of the homes in the area are not at risk, such as Roger’s property.
“The Mactaquac Dam would have to break for it to even get close to us, I believe,” he remarked.
While Rogers tried to explain that his home was relatively safe from flooding, Economical did not budge; Rogers’ policy will expire by the end of the month.
Rogers said that the decision of the insurer showed “no loyalty” to a long-time client.
New Brunswick consumer advocate of insurance Michèle Pelletier explained that insurance providers rarely cancel a policy mid-term, but it is well within their rights to choose not to renew.
“It’s very unfortunate, but that is the way our act is done,” Pelletier told CBC News.
