And after Tuesday’s severe flash floods in southern Ontario, some residents are learning the hard way that their insurance doesn’t cover flooding – and can rush so as to add that optional protection to their policies for the long run.
Does constructing insurance cover flooding?
“Those who live in a flood zone or have experienced flooding may be more aware of what their insurance policy does and does not cover and what options are available to them,” says Rob de Pruis, the agency’s national director of consumer and industry relations.
“However, if you have just moved to the area or have never experienced anything like this before, this coverage may not be available to you.”
Torrential rain hit Toronto and the encompassing area on Tuesday, flooding major highways and a significant transportation hub. Rain warnings were issued for much of southern Ontario.
It remains to be too early to evaluate the extent of the damage, said de Pruis, but “we know that this was a very significant flood event.”
Storms have gotten more frequent
Many are already comparing Tuesday’s event to a flood within the Toronto area in July 2013 that forced nearly 80,000 people to evacuate. According to the agency, the floods were attributable to record amounts of rain in consequence of storms within the region.
Just a month earlier, catastrophic flooding in Calgary forced nearly 80,000 people to evacuate and claimed five lives.
Combined, the 2 events cost the insurance industry about $3.1 billion in damages, the office said.
Optional flood insurance is becoming increasingly popular amongst homeowners across Canada and is being offered by an increasing number of insurers, de Pruis says, as extreme weather events like this week’s flooding grow to be more common.
