Canadian insurers draw attention to issues concerning flood insurance coverage
Insurance executives from 13 firms in Canada claim that access to comprehensive flood insurance protection in the country is inadequate. Executives recorded their opinions on the matter as part of a survey focused on the impact of devastating floods that recently struck Alberta and Toronto earlier this year. Flood disasters are becoming more common throughout Canada and executives believe that appropriate flood insurance coverage will not be available to consumers unless major action is taken on the matter.
Alberta and Toronto floods show many homeowners lack appropriate coverage
In the wake of floods in Alberta and Toronto, many homeowners were stunned to discover that their property insurance policies did not cover the damage caused by floods. It is a common misconception that homeowners insurance policies cover flood damage and this is not an issue exclusive to Canada. In the U.S., flood insurance and home insurance are typically two separate forms of coverage, with the former being within the jurisdiction of the federal government.
Executives call for action on climate change
Canadian insurance executives claim that comprehensive flood insurance coverage will never be available to homeowners in the country without changes to existing flood maps. These maps are meant to identify areas of the country that are prone to flooding and affect the availability and cost of flood insurance protection. Executives suggest that flood maps should be revised and that more must be done to account for the impact of climate change.
Insurance industry grows more concerned over impact of climate change
Climate change is often a controversial issue, even within the insurance industry. Many insurers are not interested in the controversial nature of the issue, however, as they are more concerned with its potential financial impact. Given that the insurance industry is well attuned to the threats that exist in the natural world, many insurers have been calling for climate change to be taken more seriously in order to mitigate the impact the phenomenon may have on various insurance sectors.