Brokerage offices in downtown Calgary and southern Alberta are still closed following the worst flooding event in the province’s history.
“A lot of the downtown brokers are more affected by the fact that they may not have power or their buildings may need to be re-inspected before they are allowed back,” said Janis Losie, member services coordinator of the Insurance Brokers Association of Alberta. “But most of the brokers survived just fine.
“The City of Calgary has done an amazing job with their business recovery plan. The brokers most affected are going to be the brokers in Canmore, Banff, High River, along that area [outside of Calgary]. There are some brokers who may be out of business for some time to come. They do have some disaster recovery plans in place. Of course the broker association is offering whatever assistance we can as well.”
Three of Canada’s largest brokerage houses, Marsh Canada, Aon Canada and Willis Canada, all reported their downtown Calgary offices were closed as of June 25. All reported their employees were safe, and claims were being handled through alternate arrangements – whether by establishing operations in hotel rooms, re-routing calls to offices elsewhere in the province, or brokers handling claims from home.
Approximately 75,000 people evacuated Calgary’s downtown area when the nearby Bow River overflowed following intense rain on June 21, causing uninsured damage to homes and businesses that could reach billions of dollars. Calgary evacuees have been told they may now return to their homes, although power in some areas has still not been fully restored.
In other flooded areas outside Calgary, such as in High River, Alberta, mandatory evacuation orders remain in place while flash floods are still being reported. Twenty-two areas in the province remain under states of emergency.
The Government of Alberta has officially pledged $1 billion for “the first phase” of emergency recovery and reconstruction funding for southern Alberta families and communities.
At its peak, the Bow River flowed at an estimated 1,740 cubic metres per second, or about 100 million litres of water rushing past every minute, The Weather Channel reported. That’s double the amount of water seen during the 2005 floods, which were record-breaking at the time.
“The 2005 floods that went through the Calgary area, southern Alberta, at that time insured damages were about $300 million,” said Insurance Bureau of Canada spokesman Steve Kee. “This will be a much greater number than that.”
PCS Canada, a property claims service, has opened up a file on this and will be gathering information on the claims reported.
Overland flooding is not available in general homeowner policies, and businesses must purchase flood coverage by way of an endorsement. It is not known the extent to which the endorsements have been purchased. While large-scale commercial operations such as the flooded Saddledome stadium may have purchased flood endorsements, smaller ‘Mom and Pop’ commercial stores may not have picked up the option.
Insurers are asking policyholders to contact their insurance representatives to confirm details about their coverage. They are also recommending that policyholders file claims with their insurers, since obtaining an insurer’s documentation is an important step in the process for applying for flood assistance from a government agency.
