The Insurance Bureau of Canada (IBC) has called on federal action to better protect Canadians from flooding on the anniversary of the Nova Scotia flash floods.
On July 21, 2023, the province experienced catastrophic flooding after an atmospheric river brought over 250 mm of rain within 24 hours, devastating Halifax, East Hants, West Hants, Lunenburg, and Queens. At least four people died in the flooding.
The intense flooding also led to a provincial state of emergency, extensive infrastructure damage, and $257 million in insured losses, according to Catastrophe Indices and Quantification.
Amanda Dean, vice-president for Ontario and Atlantic at the IBC, reflected on the progress made in recovery efforts and noted the occurrence of another deadly flash flood in the province just last week.
“Progress on the rebuild and recovery process following last year’s destructive flash flooding has been encouraging, but we must never forget that this event resulted in the tragic loss of life,” Dean said.
The availability of overland flood insurance remains a pressing issue. Craig Stewart, vice-president of climate change and federal issues at IBC, said around 10% of Canadian households are unable to access affordable flood insurance.
“Although insurers paid out more than a quarter of a billion dollars in claims for this extreme weather event, we expect total losses were far higher due to the number of uninsured properties, as well as damage to public infrastructure,” said Stewart.
Since 2017, IBC has collaborated with the federal government to develop a low-cost National Flood Insurance Program for the 1.5 million Canadian homeowners in high-risk areas.
Although Budget 2024 set timelines for this initiative, the necessary resources have not been allocated. Stewart emphasized the need for government action to establish this program before the next federal election.
“Unless the federal government commits the necessary resources this fall to stand up the National Flood Insurance Program while provinces and territories commit to mitigating flood risk, insurers will not be able to support the program before the next federal election,” said Stewart.
“Just last week, the remnants of Hurricane Beryl caused deadly flooding to the same areas of Nova Scotia that were impacted by last year’s flash flood. This is another clear reason to move forward with Canada’s National Flood Insurance Program. This is the single, most important step the government can take to better protect homeowners from the financial risks of climate change."
Nova Scotia has faced significant catastrophic insured losses in recent years, totalling $581 million for 2022 and $610.9 million for 2023. The IBC said it plans to release a report reviewing the insurance industry’s response to last year’s severe weather events and offering recommendations for improving the claims process.
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