OTTAWA – Insurance executives say homeowners will never have access to comprehensive flood insurance in Canada unless there are new maps of flood-prone areas that take climate change into account.
That’s the finding of a study that surveyed senior executives at 13 Canadian insurance firms on extreme flooding, which devastated parts of southern Alberta and Toronto this year and is becoming more frequent across the country.
Affected homeowners are often surprised to learn their policies, while covering sewage backups, do not pay for damage from water entering basement windows from swollen rivers and streams.
Canada is the only G8 country where this so-called overland flood insurance is simply not available in the private sector.
The study by experts at the University of Waterloo, Ont., found most insurers agreed that existing flood maps are inaccurate, outdated and inadequate _ and until they improve, they can’t even consider new insurance policies for overland flooding.
The Canadian Press obtained an advance copy of the report, which was paid for by the Co-operators Group Ltd., a large insurance firm.