Game changer for overland water coverage in Alberta
Posted Aug 14, 2015 2:57 pm.
This article is more than 5 years old.
Experts predict a new trend in how Albertans can claim damage on their property when faced with flooding.
Recent water events across the province have prompted insurance companies to find a way to protect their clients from overland water.
Right now Aviva offers the coverage, making Alberta among the first in the nation to offer it. It is expected other companies will likely to follow suit.
Jeff Alderman, office manager with local broker Del Fisher Insurance, told 660 NEWS there is a catch; a property owner needs to be covered for sewer back-up to qualify for the new coverage.
“It’s for rising rivers, lakes, rainfall, spring run-offs, those types of water that can get into your house that way,” he said. “This works in conjunction with sewer back-up”
The insurance professional said anyone can apply, and from what he can tell, only a small fraction of people will not be able to qualify.
“We don’t actually have a list of who does and who doesn’t. What we do know is we looked at the ones that don’t qualify and incidentally I think it’s less than two per cent of our clients,” Alderman said.
The cost greatly depends on a person’s home, history and their personal situation.
“Homeowner policies didn’t cover this exposure before, when it happened before you’d report a claim to your insurance company, they would decline because it’s not an insured peril or insured coverage, then you would have to go to the government for the disaster fund they do in the event of a catastrophic storm and you’re relying on them,” Alderman said.
Many southern Alberta property owners have been left without coverage because of overland damage after flooding events like in 2013, and more recently in Chestermere.
The coverage shift could also lead to broader changes when filing claims for disaster relief with the province.
“Anybody that owns their home, rents a place, has a property should really look at this,” he said. “Review what you have or talk to someone in the industry, so if you deal with a broker, talk to the broker, there is a lot of limitations now on a lot of policies.”
