Spring flooding in Grand Forks in 2018. This couple returned home to find four feet of water inside. (Kathleen Saylors/Grand Forks Gazette)

Who should bear the financial risk of flooding? Here are three options

Report by Insurance Bureau of Canada and federal government says how cost is covered must change

A new report co-authored by the government and the insurance industry says Canada can do a better job of protecting homeowners from the escalating financial risks of flooding.

The report, produced by a national working group co-chaired by the Insurance Bureau of Canada and Public Safety Canada, says the worsening threat means the country has to change how it covers the resulting cost of such disasters.

The report estimates about one-fifth of homes in Canada are at risk of overland flooding, while insurance payouts have surged to about $1 billion per year over the past six years.

The working group offered three possible options: a pure market approach where risk is borne by homeowners; one in which government is more heavily involved, and the creation of a high-risk pool of funds to help manage the financial risk.

All three options are viable, the report says, though some do a better job than others at meeting core principles like affordability, efficiency and financial sustainability.

READ MORE: Southern B.C. flooding victims asked to check in safe on Facebook

The report also explores the importance of creating more public awareness and encouraging homeowners to take steps to limit their risk, or to take even more drastic steps, like moving.

The Canadian Press

Like us on Facebook and follow us on Twitter

Just Posted

Council briefs: Village of Queen Charlotte

NDIT applications, solar power, animal welfare, and a look ahead to Committee of the Whole

Climate, reconciliation and industry top all candidates agenda in Terrace

Debate was the candidate’s last opportunity to address voters in a public forum

Climate change, economy and reconciliation take centre stage at Oct. 15 All-Candidates Forum

Six of the eight candidates were in attendance at the Smithers event

Greta Thunberg meets with First Nations chief in Fort McMurray

Thunberg has turned her protest against climate change into a global movement

Canucks hang on for 3-2 win over Rangers in New York

Vancouver scores three times in first period

More beef products recalled due to possible E. coli contamination

The food safety watchdog has been investigating possible E. coli 0157:H7

B.C. VIEWS: How to get the best deal on your ICBC car insurance

ICBC slowly being dragged into the 21st century

Pot legalization has gone ‘well’, but ‘yellow flags’ on vaping: task force chair

Canada legalized cannabis for non-medical use on Oct. 17, 2018,

ELECTION 2019: Federal leaders hit final 24 hours of campaign

Many leaders remain in B.C. for the final hours of the campaign

Most Read