The June 11, 2013, Fort McMurray has declared a state of emergency of the river breeched its banks Hanging Pierre and orders of evacuation took effect. For the next eight days, Albertans held their breath as flood warnings were downgraded and the waters began declining. But on June 19, heavy rains began to fall over the southern Alberta; the Bow and Elbow rivers showed no signs of slowing.
On June 20, the state of emergency was declared and evacuation orders began to Calgary, Canmore and High River, the Siksika First Nation, nine municipalities, including the City of Lethbridge ; the towns of Black Diamond, Cochrane, Sundre and Turner Valley; the Municipality of Crowsnest Pass; Rocky View County; and the Municipal Districts of Bighorn No. 8 Pincher Creek No. 9 and Foothills No. 31. On June 21, the City of Medicine Hat has also declared a state of emergency and braced for flooding; followed by the City of Red Deer and a dozen other communities, including several First Nations communities
The 2013 floods devastated the province of Alberta to a degree never experienced before. the provincial government has described as the worst in Alberta history. Over 100,000 Albertans have been displaced in the region with total damage estimated at $ 5 billion. Unfortunately, some of the displaced also faced devastating blows that came through insurance companies refuse to pay claims. It appeared as if they were tasteless on what they would cover; a neighbor in the street completely covered, while another three doors down would not. The media broadcast residents of the affected areas naming and shaming the insurance companies, so that some later reversed their decisions.
Ultimately, as a house of insurance brokerage, we wanted to shed light on how our customers have fared a year later and what the industry is like today ' hui. There were occasions when some of our customers were initially denied coverage, but we intervened on their behalf with success. For an insider's perspective, we discussed with the Vice President, Austen Lillies, who works with business customers and vice president, Lena Tityk working with our personal customer
Commercial Insurance Lillies with Austen :.
commercial point of view, the number of reported claims and the amount of damage was initially overwhelming, but our customers and insurers pulled together to get through. Now, a year after the floods, we are happy to share that most companies insured for flood-related losses have been resolved. We continue to work on more complex claims, but the majority were settled and closed with the approval of the customer.
In terms of changes in the future of commercial insurance, the industry has had to review and adjust the guidelines or underwriting principles as a result of the flooding. It is perhaps not surprising that we expect restrictive rules deployment because the number of applications. However, most insurers have been reasonable with their modified terms.
coverFlood was generally very cheap and made lower deductibles. We now see the flood rate being charged on the basis of "Flood Zone Mapping", and / or loss of the previous year. The majority of changes with coverage against flooding comes with increased deductibles and a cap on the size of the loss. It is now common to see flood franchises to a minimum of $ 25,000 per claim up to $ 500,000 per claim. Loss limits are usually a percentage of the total insured limit, however, limit the amounts of losses are generally sufficient for exposure. The franchise has increased in some cases ($ 100,000 +) are difficult for business customers to accept, but the consensus is that it is much better than not having one available flood coverage.
Some insurers are taking a very hard and do not offer coverage or very limited quantities online. This is usually done by location. In these circumstances, it is important that your broker works with several insurers to find the best solution for you. In some cases, we had to find autonomous flood policies. However, we want that commercial companies are also aware that some insurers offer such coverage has changed the wording in their policies that floods resulting Overland flooding is excluded; pay particular attention to the terms of the policy.
The companies that have invested in flood mitigation efforts must ensure that their broker is aware of the plans and efforts made with the intention of preventing or reducing the efforts of flooding. Ex .: back flow preventers drains, sump pumps, emergency power systems, bypass equipment and water-resistant reconstruction techniques can help you get coverage against flooding at reasonable conditions
personal insurance with Lena Tityk:
Availability, affordability and sustainability are all areas of concern for insurance companies in Canada. At Rogers, we processed 450 applications for flood and now a year later, 94% are resolved. Now, looking to the future for home insurance is available and sustainable from the perspective of the company, the insurance companies have to increase premiums. This is directly related to the rising costs of disasters across the country. They also began limiting coverage to respect the water, wind, hail to ensure they remain viable on the market.
That said, consumers can expect premiums will continue to rise over the next five years. Personal lines customers will also see an increase in duty rates
Example increased rates :.
• Average increase 20% on homes without claims
• Home with multiple demands increase in premiums up to 55% - 60%
Keep in mind that n is not only a bad year that affects the change in premiums or coverage. Some examples of disasters affecting the markets:
- 2013 Alberta floods: + $ 6 billion ($ 1.7 billion insured)
- 2012 Calgary hail, windstorms: 552 million $
- 2011 Slave Lake fire: $ 700 million
- 2010 Calgary hailstorm: $ 400 million
- 05 Alberta floods: $ 400 million
- 1998 Que.-Ont.-N. B. Ice Storm: $ 5.4 billion
- 1997 Man. flood: $ 3.5 billion
Changes offers for personal lines are similar to commercial insurance, in that the formulations are changed, deductibles are high, they limit coverage and in some cases, no coverage is provided depending on where the house and / or the risk is situated regardless of mitigating the insured prepared. (Ex. Installing sump pumps and back water valves.)
As always, if you have questions or concerns about insurance policies against floods, please do not hesitate to contact our experts!
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