Loss adjusters are working to assess the impact of recent flooding in Nova Scotia, with a Crawford leader having cautioned that the damages could be on par with those seen in the aftermath of Hurricane Fiona.
"The amount of rain was comparable to what they got during Hurricane Fiona,” said Heather Matthews, Crawford chief client officer for Canada. “We're suspecting the amount of damage will be comparable as well."
Hurricane Fiona drove insured losses of more than $800 million, though true damages could have been “well into the billions of dollars”, according to the Insurance Bureau of Canada (IBC).
Since the flooding wreaked havoc in Nova Scotia on Saturday, at least three fatalities have been reported, including two children. Parts of the Halifax Regional Municipality faced more than 250mm of rain during persistent thunderstorms, according to a report from The Weather Network. This is approaching the total average rainfall for summertime in Halifax of 270mm.
One of the greatest challenges for many people will be finding out that their policies may not include overland flooding.
“People may not be able to [access insurance to] cover the damages that they have experienced,” Matthews said. “Some insureds may not have even been eligible to purchase an overland flooding endorsement simply because they are located next to a river or other body of water.”
There has been some talk that the government is in the midst of creating and implementing a program to help residents and business owners who may be without cover, according to Matthews.
The Insurance Bureau of Canada (IBC) has called for the acceleration of the creation and implementation of a national flood protection program that would assist individuals in accessing flood insurance before an event.
Crawford has deployed all of its Maritime loss adjusters to help assess the claims that have sprung forth in flood’s wake.
“The superintendent issued a 60-day temporary license for anyone with a license in their home jurisdiction to travel to the province and adjust claims,” Matthews said.
As claims start pouring in, the destruction from the flood has been causing issues for insureds in the province.
“We’re seeing some infrastructure claims, especially from government buildings,” Matthews said.
Large commercial properties are feeling the sting as well, with retailers, property managers and others issuing claims for both property damage and business interruption.
Residential areas have also been affected, as well as clients with other personal lines insurance cover including auto.
“You’ve probably seen those images of cars being submerged in water,” Matthews said. “We’ve had a large uptick in calls related to those types of situations.”
A car lodged on a guardrail and partially submerged in flood water along the Little Sackville River in Middle Sackville, on Saturday, July 22.
— Matt Dagley (@mattdagley) July 23, 2023
(Photo credit: Communications Nova Scotia) pic.twitter.com/kYs2hvjHXo
On the property side, Matthews said that work to prevent the formation and spread of mould is being done, with water that has leeched into buildings being let out.
Supply chain disruptions could prove problematic for mitigation efforts. Labour shortages add to complications, as contractors are short staffed and trying to respond to all the business inquiries that have multiplied due to the flooding.
“It’s going to take Nova Scotia a long time to rebuild after the flooding,” Matthews said.
The cost of building materials remains high, especially for essential components like drywall and lumber.
“With events like this, we typically expect that it will take years to rebuild the infrastructure that was damaged,” Matthews said.
However, she also noted how many residents of Nova Scotia have been resilient in the face of disaster and personal tragedy.
“We’ve seen a lot of them very hard at work already,” Matthews said. “They're doing their own tear outs, they are also trying to cope and help their neighbours out in any way that they can.”
