Homeowners already devastated by the severe flooding that a series of nasty storms unleashed this month were soon faced with another harsh reality to grapple with: there is no such thing as flood insurance. Many flood victims learned the hard news only after calling their respective insurance companies, but an official with the Insurance Bureau of Canada says there are a couple of areas where flood-related damage could be covered.
"Water that comes down the road or across the lawn from rivers or a storm surge, you cannot purchase insurance coverage anywhere in Canada for that kind of a loss in a home," Bill Adams, vice-president of the bureau's Atlantic region, said in a recent interview. Adams said flooding isn't covered because there aren't enough homes situated in low-lying, flood-prone areas to make the coverage affordable or feasible. However, homeowners in flood-ravaged Charlotte County, central New Brunswick and along the eastern coast could be eligible for coverage on certain water-related losses. For example, individuals whose septic system backed up and spilled into their basement during the flood could seek some restitution if they had purchased a sewer backup endorsement in their insurance policy. Another case for potential coverage, Adams noted, is water damage that occurred as a result of high winds. If strong gales tore shingles off a roof and then torrential rains further damaged the roof or interior, that water damage could be covered.
In both situations, Adams said, it's largely up to the insurance adjuster's discretion whether or not to award compensation. In the case of a backed-up sewer system, for example, Adams said there are other factors for an adjuster to consider, such as the age and quality of the sewage infrastructure. "It would have to be up to an insurance adjuster to determine (coverage) ... based on their experience, photographs of the damage, et cetera," Adams said.
He noted, however, that in situations where there is widespread flood-related damage, such as the spring flood along the St. John River in 2008, "insurers were, I'm told, very compassionate." "There's nothing worse that we hate in the insurance industry than to see the kind of devastation that's taking place in southwestern New Brunswick and eastern New Brunswick, and for people who think they have coverage for those kinds of losses to find out only after fact that they don't," Adams said. He said that in extreme cases where people are facing losses in the tens of thousands of dollars, that generally adjusters will give a maximum payout wherever they can - such as for sewer backup or wind damage endorsements. "We have an extreme amount of empathy as an industry," Adams said. Flood victims can also apply for government funding through the disaster financial assistance program.
According to the Department of Public Safety, more than 850 people have reported storm-related damages with the province. Last week, a Red Cross official said that upwards of 60 homes were complete write-offs following the recent storms. However, the Department of Public Safety is saying it is still too early to tell how many homes were completely destroyed.
source: Auto insurance quotes, Get auto insurance quotes, Compare auto insurance, Auto insurance comparisons, Auto insurance quote, Instant auto insurance, Affordable auto insurance, Auto insurance companies, Auto insurance rates, Auto insurance discounts, Auto car insurance, Student auto insurance, Auto insurance brokers, General auto insurance, American auto insurance, Auto insurance UK, Auto insurance claims, Fake auto insurance, Auto insurance complaints
