Insurers’ flood losses at $1.3B, Redford says

Premier suggests damages could top $3 billion

Premier Alison Redford sat down with Canada’s insurance industry Wednesday to discuss efforts to assist flood-ravaged Alberta and says insurable losses are now pegged around $1.3 billion — and the entire tab could “absolutely” top $3 billion.

Much of the talks in Toronto between the premier and insurance company executives, along with the Insurance Bureau of Canada (IBC), focused on providing clarity to affected homeowners, as well as the province’s disaster recovery plans and future flood mitigation measures.

“We expect them to be available to provide information to homeowners with respect to their policies, so that homeowners can make the decisions that they need to make,” said Redford, in Ontario for the annual premiers’ conference.

Provincial officials are compiling a list of infrastructure repairs and associated costs, but the premier expects the actual work will likely take years to complete.

At the meeting, officials with IBC estimated insurable losses would be about $1.3 billion, she noted.

“That’s only insurable losses,” Redford said in an interview.

“The (province’s disaster recovery program) is completely different than that. And the money that we would pay to rebuild infrastructure is separate from that again.”

The premier said the overall cost could easily exceed $3 billion. The province has already allocated $1 billion for initial recovery and rebuilding efforts.

“We have preliminary assessments of what the physical damage is, but we’re well aware of the fact it’s going to be far beyond that,” she said.

Officials with the IBC, representing 90 per cent of the country’s property and casualty insurance market, said they aren’t willing to disclose preliminary damage estimates yet because claims are still being submitted.

“Any tabulation, at this point, is changing almost daily,” said Steve Kee, IBC director of media relations.

In an e-mail, Kee described the meeting with Redford as cordial, saying Canada’s insurers reaffirmed their commitment to work together “to build more resilient communities to withstand future extreme weather events.”

In addition to discussions with insurance companies, the premier said she will ask other provinces this week to support the development of a broader federal disaster mitigation plan.

“There’s no doubt that simply responding to these disasters isn’t sufficient,” said Redford. “We’ve got to be thinking long term, we’ve got to be thinking inter-provincially.”

The flood that swamped southern Alberta in June forced 100,000 people from their homes, led to the deaths of four people and caused billions of dollars in damage to public and private property.

The province has pledged to help flood victims rebuild their homes — many aren’t eligible for insurance due to overland flooding — and it appointed an advisory panel Sunday to research community flood prevention.

Opposition leaders blasted the Tory government for its lack of disaster preparation, saying it ignored recommendations from a report into the 2005 flood in Alberta that could have limited damage this summer.

Following a visit Wednesday to areas of Medicine Hat affected by the disaster, Wildrose Leader Danielle Smith said many Alberta communities already have clear ideas on how to improve their own defences.

It’s up to the Tory government to move swiftly, as many homeowners need clarity so they can make decisions about rebuilding, she said.

Smith said past floods in southern Alberta in 1995 and 2005 were “warning shots” to bolster flood defences, but the PC government didn’t take these events seriously.

“You can only go so far with sandbags, and changing out your windows,” she said.

“We need to see major projects like spillways, reservoirs, dredging of rivers, berms. Those are the kinds of things that only the province can do and co-ordinate.”

High River Councillor Jamie Kinghorn, who saw two of his properties severely damaged in flooding that overwhelmed the southern Alberta town, said provincial mitigation efforts can’t be piecemeal.

“It needs to be an all-encompassing plan,” Kinghorn said. “That’s the only way it will be successful.”

He said the town has a priority list to prevent future flooding that would include a diversion upriver, dredging the Highwood River, building swales, and ensuring the river can flow unobstructed beneath a train bridge north of the town.