According to market research, many homeowners are prepared for floods due to unclear real estate regulations, incomplete flood maps, and lack of important information as the insurance industry withdraws from high-risk areas.
The Marketplace has also found homeowners who have lost flood protection due to multiple damages, or especially due to an increased risk of climate change. The Canadian Insurance Agency (IBC) warns of situations that more Canadians may face.
The IBC estimates in the Marketplace that 6-10% of Canadian homes are currently uninsured due to floods, and more insurers will update their risk assessments to reflect the heightened threat of climate change. He said the estimates could go up over time.
“The increased risk of climate change could make more Canadians uninsured,” said Craig Stewart, vice president of federal affairs at the IBC.
According to a 2019 federal government report, Canada’s climate is warming twice as fast as the rest of the world, and the IBC says that one-tenth of Canada’s homes are now at high risk of flooding. We estimate that floods may repeat in the next home. 20 years.
But are potential homeowners warned about this risk? A marketplace team conducted an undercover investigation in the guise of a new Ontario homebuyer and found that brokers and sellers had no Canadian requirement to warn them about moving to flood-prone areas.
The marketplace was twice told that the house was not in the floodplain when the public data showed it differently. In another test, a producer disguised as a potential home seller also found that her agent did not always advise her to disclose past flood damage.
The recent floods in British Columbia have brought flood insurance to many homeowners. Some residents are unable to find insurance there, look to the state’s disaster relief, and others evaluate what coverage they have when cleanup begins.
But in some cases, preparing is not enough. Derrick Terakita knew that his home in Richmond Hill, north of Toronto, was in the floodplain and thought he had enough compensation until he renewed his insurance this year. In May his insurance company informed him that he was withdrawing his land water cover. Increasing harsh weather due to climate change.
“I was a little angry, but it’s an insurance company trying to protect their money,” Terakita told the marketplace.
Get Canada and Newfoundland’s top News, Market news, and other worldwide news only on https://nlgazette.com
