Roberts-McClure Insurance - Home Insurance

Flood Damage Is Not Covered

I live in an area of Atlantic Canada that is prone to flooding during severe storms. Does my insurance policy cover me against damage from flooding? If not, what can be done to protect my home?

Ah, life on the ocean. Fresh salt air, sandy beaches - and the ever-present threat of a flooded basement.
Insurance companies do cover some losses due to water damage, but usually only those caused by a sudden and accidental escape of water - like a washing machine that overflows, or a broken water main. They don't cover damage arising from floodwater.

After all, insurance is there to compensate you for losses that are unexpected. If you live on a flood plain, it stands to reason that, at some point, you will be flooded. There's nothing unexpected about that. While limited flood-damage coverage may be offered in some parts of the country, the cost is usually beyond the reach of most homeowners.

So what to do? Well, we can't control Mother Nature, but we can soften the blow and even prevent damage and destruction. Zoning laws and enforcement are key. People must be informed about the risk of flood in their area and, if they choose to remain there, they must be prepared to accept the risk. Dykes, dams and floodways, however, will help limit the damage. For example, the Winnipeg floodway that re-gained national notoriety during the '97 Red River flooding has been used 17 times to reduce flood loss in that city, and has paid for itself more than 20 times over.

The property and casualty insurance industry is working on a plan to help protect all Canadians from damage and loss caused by severe weather and earthquakes. The industry's "Natural Disaster Reduction Plan" calls for a three-pronged course of action: the creation of a natural-disaster protection fund; an increase of 15 per cent in current disaster (recovery) financial assistance arrangements; and the promotion of a culture of preparedness to improve the planning process. Insurers are currently working with all levels of government to make this happen.

In the meantime, you can visit the following Internet sites to bone up on flood prevention:

www.safeguard.ca - the federal government's public awareness group.
www.fema.com - the Federal Emergency Management Agency in the U.S.
www.cpcusociety.org - the Chartered Property Casualty Underwriters Society of America has an excellent self-help book titled "Rising Waters - Flood Safety."
www.iiaa.org - the Independent Insurance Agents of America provides flood disaster tips.

We can prevent a natural hazard from causing a natural disaster if we take our lead from the Boy Scouts and BE PREPARED.

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Flood Damage Is Not Covered