2013 was a record-breaking year for the home insurance industry, thanks to catastrophic weather events, like floods, hail, and ice-storms that swept throughout Canada. According to the Insurance Bureau of Canada, the total number of claim payouts reached $3.2 billion. This number is almost twice as large as the number for total payout claims that ranks in second place. It is also a tenfold increase from the losses incurred by home insurance policy holders just a decade ago. In response to this record-breaking number, Don Forgeron, chief executive of IBC, stated that the weather effects of 2013 hit insurers and Canadians hard.
As a result of this influx in natural disasters, not just in Canada, but around the world, insurers are forced to raise their home insurance premiums and revamp their coverage options for customers. But, many insurers are also dedicated to investing in new technology that can help them track and predict extreme weather events.
One of these weather events that insurers are growing more and more aware of is flooding and water damage. In recent years, water damage has surpassed both fire damage and theft in number of home insurance claims in Canada. For example, the rainfall and flooding that hit Southern Alberta in June of last year now reigns as the most costly natural disaster in Canada’s history. As a result of these intense storms, the IBC reports that insured damages went well over $1.7 billion.
With natural disasters becoming prevalent occurrences in Canada, protect your home from the threat of intense weather and talk with your insurance broker to find out how you can guard your home financially from a disaster.