Here’s How Much A Flooded Basement Will Cost Canadian Homeowners

Flood Insurance Plan

You’ll find in Canada many types of floods that happen every year have an insurance cover. However, no insurance provides cover for basement flooding even though it’s the most frequent disaster. For instance, let’s say insurance provides $15, 000 insurance cover for basement flooding, but after the disaster, the cost expands to $40, 000, that means you end up getting $25, 000 from your pocket which is unfair. And you never know whether the flooding may happen in the same year again and that keep tearing your wallet apart.

You will find traditional flood insurance mostly lean towards backed-up sewer coverage, and they do not consider flooding coming in through the window or basement wall referred to as “overland flooding. Every homeowner should look for overland flood insurance which may cost you a few hundred dollars to prevent you from incurring insane basement repair prices. The overland flooding insurance cover was introduced four years ago and is serving homeowners in Canada than waiting for unknown surprises.

Over the years, overland flooding was not an issue in Canada, but in recent years, big storms are often happening due to climate change. Basement flooding is a nightmare no one would love to wake up to because only professionals can handle the flood, and that is money. That’s why you need to monitor your home as often for leaks, mold and cracks to protect your building's foundation.

Weather

Any occurrence of severe weather is a nightmare for insurance companies. Last year alone, extreme weather caused a loss of life, property damage, social disruption and soared insurance damage to $1.9 billion according to IBC statistics. Don’t forget this was the fourth year in a row to experience such devastating weather effects not forgetting the highest loss through 2013 Calgary flood and 2016 Fort McMurray wildfire.

During the summer season, storms were responsible for damages caused by $240 million insured damages, especially prairies last year. According to IBC, Toronto alone suffered $80 million insured damages due to flood in August, while Quebec and Ontario damages surpassed $85 million.

The Canadian government spends $3 for every $1 damages covered by insurance according to IBC estimates.

When you factor the number of events and severity, continuous climate change may pose even great danger in coming years. More emphasis needs to be placed to counter floods from causing havoc to building every year through improved infrastructure.

Future Plans

Homeowners need to be proactive with your insurance coverage for you never know how the climate may affect the weather. If you look at statistics, the flood level is increasing and involving many insurance companies as insured damages soar every year. You cannot predict today’s weather with the past because even the least affected areas are recording slight weather changes.

Cities in recent years have recorded an influx of people moving from flood-prone areas. Montreal, Vancouver and Montreal have seen many Millennials moving to cities and are hoping house prices won’t burst anytime soon. Unless the government does not negotiate the flood basement insurance on behalf of the Canadians, the living standard may go high and prompt owners to move away from their homes.

Out of all G7 countries, Canada is the only one without a proper flood forecasting system. Major rainstorms plus spring flooding account for 80% weather occasions that are eligible for 3 years consecutively for disaster funding. The UN report should caution homeowners about future looming flood dangers that may lead to a more flooded basement. The report says Canada will experience weather changes that will contribute to water shortages and increased flooding yearly.

Further, the reports show that by the year 2060 which is a lifetime of approximately half of Canadians living today, Maritimes plus coastal floods off British Columbia that happened once in a century will become annual events. The flooding is projected to affect more Canadians beyond what will happen to British Columbia and Maritimes. Such news should caution all homeowners living near waterways considered to be a danger zone during the flood.