MERIT, British Columbia – A survivor of last year’s catastrophic floods in British Columbia warned others to check their insurance policies after saying she received a payment of just $ 30,000 when her $ 414,000 home was destroyed. .
Pam Welt, whose house collapsed on the Nicola River last November, said she and her husband Paulus believe they are fully insured.
“We thought we were covered,” she said. “I finally realized we had no home left. And everything we worked for is gone.
The Welt family had just begun their retirement on a rural property along Highway 8 west of Merritt, British Columbia, and were planning to leave it to their son, who also lived with them. They are now being housed in a 12-foot trailer backed by the Canadian Red Cross.
Although he pays extra for land flood insurance, which covers damage from heavy rains and overflowing rivers, Velt said he was shocked by the amount paid and disputed it.
A copy of Velts’ insurance coverage shows that their basic policy includes a total of $ 674,050 in the property, including $ 313,500 for their home and other coverage for additional structures, personal property and loss of use. In case of additional and optional coverage, the sum insured against land floods is indicated as $ 30,000.
Their insurer, the Wawanesa Mutual Insurance Company, said in the interest of the privacy of its policyholders that it could not comment on the specifics of the claim or the details of the dispute.
There are several options open to policyholders who disagree with the company’s decisions, including contacting the General Insurance Ombudsman and the Canadian Financial Services Agency, the statement said.
Prior to 2015, the only financial compensation available for land-based flood damage in Canada was through disaster financial assistance programs provided by the federal and provincial governments, said Wawanesa spokesman Brad Hartle. The company is one of 30 companies in Canada that now offer some level of flood cover.
“Some homes face a higher risk of land floods than others, and this is reflected in the coverage available and the price charged,” he said.
Rob de Prouis, National Director of Consumer and Industry Relations at the Insurance Bureau of Canada, said that the cost of insurance related to extreme weather conditions has risen over the past decade. The national average is $ 2.1 billion a year, compared to $ 422 million between 1983 and 2008.
“The insurance industry has seen an increase in the frequency and severity of severe weather events, and we have been sounding the alarm for years,” he said.
The floods in November were the most costly disaster in BC history, with insured costs estimated at $ 515 million as of January. That figure is likely to rise and does not include unsecured expenses, the bureau said.
The best estimate, based on anecdotal evidence, is that about 30% of properties in high-impact areas have had some level of flood cover, de Prouis said, but there is no official number.
About 800,000 properties in high-risk areas in Canada remain ineligible for coverage, he said.
The Insurance Bureau of Canada is working with the federal government to develop a flood map and flood plan to increase eligibility for those not currently covered, he said.
For now, individual companies have to determine how much coverage they will offer in risky areas such as floodplains and along rivers.
Pricing is difficult because some risks are so high that the right price of coverage would be prohibitive, de Prüis said.
“As the risk starts to increase, costs increase and coverage limits can be reduced,” he said.
In a news release this week, the British Columbia government called on British Colombians to prepare for disasters by buying home insurance.
However, it is noted that flood insurance can be difficult to access.
“While home flood insurance may be limited to higher-risk areas, insurance representatives can help determine if home flood insurance or sewer backup coverage is available for your property,” the government said.
Months after the flood, Welt said she and her husband still pay mortgage payments on the house that went missing, and also pay insurance to protect themselves from liability if someone is injured in the property.
The last time Welt was in the house, she tried to open the door to save her pets. He wore donated boots and hoodies, but with the change of seasons, Welt said he realized he needed a whole new summer wardrobe.
“When you leave with what’s on your back, you have nothing. Summer is coming, I tried to explain to the Red Cross, we don’t have shorts,” she said.
The British Columbia government has said flood victims are entitled to up to $ 300,000 in disaster relief, and Welt said he hoped it would happen soon.
So far, she said she was grateful for the support of friends and family.
“We are in uncertainty.”
This report from The Canadian Press was first published on April 15, 2022.
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