Wreckage was floating around a house in Chilliwack, British Columbia, on November 20th. JESSE WINTER/Reuters

As catastrophic floods become more common, more and more Canadians choose professional insurance, but due to the current events in British Columbia, insurance rates may rise as insurance companies reassess risks.

Land flood insurance is different from general family insurance, which usually only covers floods caused by pipe bursts or roof damage. In fact, flood insurance was only provided in 2015, a few years after Calgary's widespread floods caused billions of dollars in damage to the area.

According to the Insurance Agency of Canada (IBC), the use of flood insurance is growing rapidly, with approximately 50% of Canadians getting land flood insurance in 2020, up from 20% in 2017.

The agency stated that the vast majority of Canadians can get land flood insurance ranging from US$100 to US$300 per year, while people in other high-risk areas may have to pay US$500 to US$1,000. However, as once-rare events such as flooding in the Lower Mainland of British Columbia began to occur frequently, premiums are facing upward pressure.

Aaron Sutherland, vice president of IBC Western and Pacific, said: "We have been tracking insurance claims for severe weather events-such as storms, fires, floods, etc.-going back to the 1980s." He said that dealing with these weather events is important as a trend, not a fluke.

"In the past, the industry had to pay only a few hundred million U.S. dollars for these claims each year, but recently this number has soared to more than 2 billion U.S. dollars per year, only for claims related to climate change."

Mr. Sutherland said that in British Columbia, 5% of people live in houses with a high risk of flooding, even without insurance. He said that the premium for flood insurance is usually up to about $1,000 per year, and it will no longer be available at that time.

He added that in the flooded Sumas Prairie area of ​​Abbotsford, there are likely to be people who are at high risk and are not insured.

John Shmuel, the managing editor of Ratesdotca, said that in the past many homeowners did not prioritize flood insurance, but people need to seriously consider any flood risk when buying a home.

However, he said that it is difficult to obtain this information in Canada because there are no nationwide floodplain maps and many maps available date back to the 1980s.

"You can't buy a house and know exactly whether your house is built on a rerouted river or a previous floodplain," Mr. Shmuel said, adding that future homeowners should do their own research and consult an insurance agent beforehand. People buy a house.

"Most people might not even think of this when buying a house... but I won't make that mistake, especially based on the so-called'one-hundred-year events that we have seen become more frequent."

Ian Lee, an associate professor at Carleton University's Sprot School of Business, said he has seen the worst that can happen in some communities after the flooding of the Ottawa River.

"I heard that these homeowners cannot get flood insurance now-the risk is too great," Professor Li said.

"Some cities, because they know they want to provide some kind of support to the homeowners, actually take the initiative to say that we will not allow you to rebuild in the floodplain, and there are other cities that say we will re-divide these areas."

He said that the Canadian government is developing a national flood insurance plan for people in high-risk areas, but the specific content and cost of the insurance are still unclear.

At the same time, if people face higher costs, they can take some measures to reduce insurance premiums.

Mr. Sutherland said that because land flood insurance can usually be combined with standard flood insurance, install a sewage pump (which can remove the water accumulated in the basement) or a return valve (to prevent sewage from flowing out of your house in the wrong way). Pipeline) can further protect your house and reduce your insurance premiums.

He added that if homeowners are facing financial pressure, they can also choose a higher deductible or a lower maximum payout. Although some insurance plans cover full damage to the house, other insurance plans have a maximum payout between US$25,000 and US$50,000.

Finally, Mr. Shmuel said that it may take several weeks to several months to receive payment, because insurance companies sometimes send an adjuster to verify your claim. He said that it is important to start your claim process as soon as possible.

"You want to track all the destroyed things, any receipts you have," Mr. Shmuel said.

"Whether you are in a car accident or the basement is flooded, the sooner you claim, the fresher your memory will be."

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