Insurer cancels home policy, says city is too risky following flooding
Company pulls out despite a good number of homes being considered not at risk
Insurer cancels home policy, says city is too risky following flooding
CATASTROPHE & FLOOD
By Lyle Adriano
29 Apr 2019

With New Brunswick’s capital Fredericton still reeling from the Easter weekend flooding, one insurer has reportedly been canceling home insurance policies in the area.

Read more: NB experiences “significant flooding” over Easter weekend

Steve Rogers said that his insurer, Economical Insurance, will no longer cover his home, because the company is no longer writing policies for a “high-risk area” like Fredericton.

CBC News reported that the city of Fredericton is experiencing a second straight year of record-breaking flood levels. However, the vast majority of the homes in the area are not at risk, such as Roger’s property.

“The Mactaquac Dam would have to break for it to even get close to us, I believe,” he remarked.

While Rogers tried to explain that his home was relatively safe from flooding, Economical did not budge; Rogers’ policy will expire by the end of the month.

Rogers said that the decision of the insurer showed “no loyalty” to a long-time client.

New Brunswick consumer advocate of insurance Michèle Pelletier explained that insurance providers rarely cancel a policy mid-term, but it is well within their rights to choose not to renew.

“It’s very unfortunate, but that is the way our act is done,” Pelletier told CBC News.

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