When the flood waters finally receded last June in southern Alberta, brokers and insurers made a lot of exceptions to ensure clients were covered. But this time around, one brokerage is preparing clients not to expect the same treatment should a repeat of 2013 occur.
“One of my major concerns is that consumers are all aware of what their policy will actually pay for,” says Jeff Burke, the CEO for Western Financial Group, in High River, Alta. “Because if the same event happened this coming June 20, their policies – and likely the government – would not behave the same way they did last storm, if it happened to the same people.”
Since last year’s flood, which is the costliest natural disaster in Canadian history pegged at around $2 billion in estimated damages, there have been premium changes to policies, and new requirements for policyholders.
“Every (insurance) company has reacted a bit differently. We’ve contacted many of our clients because there have been premium increases,” says Burke. “There have been deductible changes, there have been coverage changes, and there have been requirements by some companies to put in sump pumps or backup sewer devices to try and mitigate future losses.”
High River – like Calgary – was hit hard by last June’s flooding, with large sections of the city being evacuated for 11 days. For Burke, having a nearby feedlot within the High River floodzone made the decision easy to include sewer backup coverage for those in the community.
“After those 11 days the water was contaminated, and there was no real way to tell where that contamination came from,” he told Insurance Business. “So we placed that under sewer backup, for those who had that cover.” (continued.)
#pb#
Burke was tapped to take the president’s chair in September 1 of last year, eventually assuming the role of CEO on January 1. It marked the first leadership change in Western's 17-year history, taking the reins from company founder Scott Tannas.
Burke has made it a priority to ensure all of Western Financial’s clients are not only aware, but prepared, for another major flooding event – and why the industry as a whole needs to take a proactive role.
“Even though we’ve talked to many clients already, we’re covering our bases to make sure everybody is prepared,” says Burke. “That is why it is important as an industry that we make people aware of that fact. We’re actually going to put our own newspaper advertisement out, and we’re sending out another mailer.”
The 2013 flooding was the result of torrential rainfall between June 20 and 24, killing four people and forcing 100,000 residents from their homes. It forced the provincial government to declare a state of emergency for Southern Alberta.
Immediately after the flooding, some 5,000 insurance professionals deployed to focus on helping with the claims process. Last month, the Alberta government earmarked $1.5 billion for flood mitigation and recover programs over the next three years. In November, Ottawa pledged $2.8 billion in federal flood relief.
