SHARP HOME

Monday, 20 April 2015

Flood Insurance Coverage in Alberta


Climate change in Canada


The June 2013 Alberta flooding was a loud wake-up call for many Albertans. Our climate is changing, and Mother Nature let us hear her roar that day. The floods took the lives of four Albertans, displaced thousands of people, and cost the economy a whopping 4.7 Billion dollars. If we zoom out a bit and examine the Alberta flooding on a global scale, the flood was ranked number three most costly natural disaster in 2013 behind the Eastern European floods-16.5 billion in losses, and the European hailstorms totally 4.8 billion in economic costs. In Canada alone, from 2006-2012, the costs of insurance damage from extreme weather related claims have increased by 650%! That does not even include the June 2013 flooding.

How claims effect your rates


What do these numbers mean to you, and why should you care? Whether or not you were affected by the Alberta floods, you will see the impact on both your insurance coverage and insurance premium costs. Overland flooding is an exclusion on your policy; always was and probably always will be. The reason is simple, it costs too much money. Think about it, insurance companies in Alberta paid out 1.9 billion in flood-related claims, most of those for sewer backup. Where do these 1.9 billion dollars come from? Well, it comes from you. Insurance, from its very inception is this: the loss of the few covered by the many. Simple, right? Well, what happens when the loss is the many? It means your premiums must increase regardless of whether or not you had a claim. In other words, insurance is a large pool that every policy holder contributes to; if someone has a loss, money comes out of this pool. If the pool is drained too fast, then people have to put in more money to ensure there is enough to cover future losses.

Sewer backup coverage




Sewer backup coverages are changing in order to reduce the amount of large claims made on insurance policies. Make sure you are covered properly by checking your policy carefully for two things: your sewer backup limits which can range from $15,000 to $100,000. Many insurance companies have reduced the maximum payouts for sewer backup claims, so check to see if yours have been affected by this. The second important change is your deductible. Common deductibles for sewer backup used to be $500 or $1000, but companies are now implementing deductibles as high as $2500.

Why are these changes happening? Well, let’s discuss the most obvious reason first, money. Insurance companies are doing their best to cope with the climate change and the demands it’s putting on insurance claims. Limiting small claims, or even capping claim limits will obviously reduce the payout amount but it will also help to keep your own home insurance rates from increasing too much over the next few years. Sewer back up claim payouts per occurrence is increasing a lot. Basements are developed, really developed. Hundreds of thousands of dollars can go into creating a fully developed basement equipped with home gym or theatre. What once could have been a $20,000 payout for a sewer backup claim can total up to $150,000! Some words of advice: read over your sewer back up coverage carefully and always read over the exclusions outlined in your policy.

Overland Flood Insurance




Our climate is changing and flooding is a reality of that change. Will we experience a flood of that scale again? Possibly, no one can say for sure when. What we do know for sure is that most insurance companies are not going to pay. Clearer-written exclusions on policies and changes to sewer backup coverage will limit sewer backup claims due to overland flooding. Flooding can also be caused by melting snow, rainwater, and other factors. Flooding is a frequent occurrence in the Prairie Provinces so it’s important to know how to protect your home and how to prevent a loss from happening. For more information, see our blog post on “What to do in a flood emergency.”

Aviva Insurance is offering the first ever Overland water coverage in Canada. What does this mean? It means with this enhancement you will have coverage for water damage due to rising freshwater levels, water damage caused by melting snow and ice, and damage due to torrential rain. For more information on this groundbreaking coverage, please visit: www.floodinsurance.ca

Tell us what you think about flood insurance. Leave a comment below and let us know if you would purchase extra coverage for flood insurance. Insurance should meet the needs of our clients, and not the other way around. We want your feedback!

26 comments:

  1. I think flood insurance is very needed for Alberta. Because here always flood occurs. Thanks for pointing that post. We are provide solution about business insurance.

    ReplyDelete
  2. water damage restoration torrance Svc including photos, cost and more. Torrance, CA - Restoration Specialist.

    ReplyDelete
  3. Flood Elevation Certificate is help us to reduce flood insurance costs, improve coverage, increase asset values.

    ReplyDelete
  4. Very nice article, I enjoyed reading your post, very nice share, I want to twit this to my followers. Thanks!. water restoration tampa

    ReplyDelete
  5. I was reading your article and wondered if you had considered creating an ebook on this subject. Your writing would sell it fast. You have a lot of writing talent. Brandon insurance agency

    ReplyDelete
  6. The flood damage restoration wilmington has a team of highly trained and experienced technicians who are aspired to help the people in minimizing the loss, stress and damage related to the flood damage.
    our blog

    ReplyDelete
  7. The services will vary based on what kind of measures is required pertaining to the situation. For example, floods are not always due to environmental conditions, at times, if there is a leak in the house, even that could lead to floods and cause potential damage.
    Williams FIND US ONLINE Remediation LLC

    ReplyDelete
  8. Effective smells may wait for a considerable length of time or months. While it is feasible for a property holder to stop some of this and restore a portion of the annihilation, a group of experts will be required to bring the building again to its past state.
    Floodspro website

    ReplyDelete
  9. These things can result in minor or exceptionally extreme harms to your property. It is the employment of water damage experts Fort Lauderdale to restore your property to its earlier condition.
    Floods pro online services

    ReplyDelete
  10. Can I ask you whats the normal rate for water damage insurance price for Alberta ?? You see im from Dallas Texas, and I was just thinking what I should try to go for back here.

    ReplyDelete
  11. This is new to me since. I don't have any idea that even the this kind of problem could be cover by insurance. Is it available for flooded basement?

    ReplyDelete
  12. This is such a great resource that you are providing and you give it away for free. I love seeing blog that understand the value of providing a quality resource for free. ezfloodrestoration.com

    ReplyDelete
  13. Your blog is providing a great information about insurance policies with many beneficial services. It is a great need in Calgary. We are also offering services with many insurance quotes. For more details you can visit https://alpineinsurance.ca/

    ReplyDelete
  14. Nice post. This post has lots of important information. Actually this blog is full of information. I like this post and this blog. Thanks for sharing this post. Mold damage

    ReplyDelete
  15. Best in class gear is utilized to reestablish your home and belonging, and these experts can likewise take out the smoke and other hostile scents caused by flame.flood damage cleanup companies

    ReplyDelete
  16. It's exactly the same as residing in a flood zone where by people pay a premium for an insurance plan.Surviving Basement Water Damage

    ReplyDelete
  17. great information! i latterly came across your blog and had been reading along. I notion i would go away my first comment. I don’t know what to mention besides that i've.best garrys mod games

    ReplyDelete
  18. first-rate process for publishing this type of useful net website online. Your web log isn’t only beneficial however it's far additionally actually creative too. There tend to be now not many individuals who can truely write no longer so easy posts that artistically. hold the pleasant writing.garry"s mod free play online

    ReplyDelete
  19. The business identities are nowadays flocking to get websites published, registered and hosted on the internet. Seeing to the exponential demand, the marker is witnessing mushrooming of a number of website design and development companies.Visit Here

    ReplyDelete
  20. Your blog postings are going well but it is getting more and more difficult to come up with new topics about which to write. After reading this article, coming up with blog topics will no longer be an issue.best online shoe shops

    ReplyDelete
  21. As a blogger, I am sure that you would like your blog to make some serious noise online. You want people to talk about it and you want your visitors to recommend it to their friends and family members.casual shoes men

    ReplyDelete
  22. If you are obsessed to have an excellent blog, the key to get it is just on your self. It is possible only if you are an excellent Blog Writer. However, to be an excellent writer is not easy. So, here are some tips to help you shape yourself becoming an excellent blog writer.gmod download free

    ReplyDelete
  23. Without issue, the object is sincerely the best challenge be counted in this registry related trouble. I would love to look you again and could eagerly look in advance to your next updates. Shoes

    ReplyDelete
  24. It is human to desire a platform where you can express your thoughts and ideas. Blogs is such a platform where people can say whatever they feel like openly. Before the invention of blogs, people had to create a website to express their ideas which used to be quite costly. But blogs have given people a way to express themselves and it doesn't even cost anything. Following are eight way to do excellent blogging...Shape Globe

    ReplyDelete