An estimated 6,000 residential property claims are expected to be handled because of the floods in B.C.JONATHAN HAYWARD/The Canadian Press
Widespread flooding across southern British Columbia in November is now estimated to have caused $450-million in insured damages, making it the most costly severe weather event in the province’s history, new figures from the Insurance Bureau of Canada show.
But that figure reflects only a small portion of the total price tag, in part because many residents affected were in high-risk flood areas and floodplains where insurance coverage is not available.
The provincial government declared a state of emergency after floods and deadly landslides, caused by record rains that began Nov. 13, caused catastrophic damage to transportation links and forced the evacuations of 4,300 properties. Much of the flooding took place on prime agricultural land, and while the damage to crops won’t be fully known until next spring, roughly 700,000 livestock animals died.
“This is certainly the largest insurance disaster in B.C. history,” said Aaron Sutherland, vice-president, Pacific and Western, at the Insurance Bureau of Canada. The $450-million figure is a preliminary estimate from Catastrophe Indices and Quantification Inc., based on the agency’s surveys of private insurance companies.
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An estimated 6,000 residential property claims are expected to be handled because of the floods, but Mr. Sutherland said that represents just a fraction of the losses.
“The bulk of the cost from this disaster is going to be borne by government, by taxpayers,” he said in an interview.
In a briefing Thursday, Transportation Minister Rob Fleming said the provincial government has distributed $10.8-million to evacuees so far, but warned progress will be slow.
“The process of recovery and rebuilding is under way, and while it will take time, we will get there,” Mr. Fleming told a news conference. “Our government stands ready to support everyone who has been impacted by these devastating floods.”
Top: Contents from flooded homes are pictured on the street in downtown Princeton, B.C., on Dec. 3. Above: A man helps clear out a home in downtown Princeton.JONATHAN HAYWARD/The Canadian Press
The Insurance Bureau of Canada has been urging the federal and provincial governments to develop a low-cost residential flood insurance program – based on a public-private partnership model – that would be available to residents of high-risk areas.
Mr. Sutherland said discussions with governments have been under way since 2015, but B.C.’s latest climate disaster should add some urgency to those talks.
Mr. Sutherland added that any model for a flood insurance program of this kind has to be developed along with policies around where homes are built, and standards of flood protection.
“It requires some pretty frank discussions around land use – where we are and aren’t building – moving forward. And then also, of course, it does require a much greater emphasis on protecting our communities, where it makes economic sense to do so.”
Were B.C.’s dikes ever up to the job of stopping floods like these?
B.C. Finance Minister Selina Robinson could not be reached for comment, but told reporters last week it is too soon to put a dollar figure on the total damages. “It’s important that we do wait for those estimates. I think it’s really important that we not guess what that’s going to be.”
The province is counting on significant financial assistance from Ottawa to help fund repairs to major highways, and to provide relief to uninsured homeowners and businesses.
The federal government will cost-share with the province through the Disaster Financial Assistance Arrangements (DFAA), which sets the cost-sharing on a sliding scale that tops out at 90 per cent, depending on the per-capita losses sustained by the province. But the cost-sharing details will take many months to assess.
In turn, local governments can access funds from the province through the DFAA program for rebuilding or replacing essential public infrastructure. Similarly, the private sector may be eligible for DFAA for essential, uninsurable damages.
During an economic forecast council meeting last week, Ms. Robinson was warned that the scale of the damage will likely reduce the province’s economic growth in 2021, in part because of the disruptions to supply chains that stalled rail, truck and marine traffic.
The reconstruction activity, however, is expected to spur growth in 2022 and beyond.
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