Storm likely to be deemed a catastrophe
Damage expected to pass $25M threshold for storm to be called natural catastrophe
The weekend hailstorm that tore up houses, smashed car windows and flooded streets in Calgary is expected to be labelled a natural catastrophe, according to an insurance expert.
Saturday evening’s storm left a trail of destruction primarily in the city’s northeast. The carnage is extensive, and even though the Insurance Bureau of Canada can’t predict the total amount of damage, Mayor Naheed Nenshi anticipates it could be as high as $1 billion.
Insurance Bureau of Canada spokesman Rob de Pruis said the damage is expected to cross the $25-million threshold for the storm to be labelled a natural catastrophe.
“When it has over $25 million in insured damages then it’s labelled a catastrophe and there’s more tracking that takes place within the industry,” said de Pruis.
In the past decade, hailstorms have caused more than $4 billion in damage and the average storm costs about $141 million in insured costs. But de Pruis said Saturday’s storm appears to be significantly larger than average.
Opposition NDP Leader Rachel Notley on Tuesday walked through some of the northeast streets that are lined with smashed cars and stripped homes and businesses, while calling for emergency disaster relief from the UCP government.
“I’m struck and overwhelmed by the depth and the breadth and the extent of the damage,” said Notley.
“I asked the premier to declare this a disaster and to ensure that not only the municipality but also residents would be eligible to apply for disaster relief ... We are hopeful most of it will be covered by insurance but we also know that not everybody has hail insurance or full insurance on their vehicles.”
Before emergency disaster relief can be issued by the provincial government, hydrologists with the Alberta Emergency Management Agency are analyzing data from the storm to determine if it qualifies for the Disaster Recovery Program. The program would assist in covering uninsurable damages and costs.
Nenshi is confident the disaster will qualify for the relief program because it is one of the most severe summer storms Calgary has had in years. Before the 2013 flood in Calgary and the 2016 Fort Mcmurray wildfire, some of the top disaster-related insurance claims in Canada were hailstorms in Calgary that weren’t nearly as severe as Saturday’s, he said.
He’s worried about people who are uninsured or underinsured, and those who might have safety issues because of the condition of their homes. He’s calling on the community to help out in a safe way by providing food and child care, or helping with cleanup.
“This is what we have learned Calgarians are exceptionally good at,” said Nenshi. “There is nowhere else in the world where I would rather be when disaster strikes than right here.”
Calgary Forest Lawn MP Jasraj Singh Hallan said his house and car were wrecked in the storm, so he feels for the devastation this has caused his neighbours.
“It is going to take months for this to get cleaned up,” said Hallan.
“I want to stress that this is a time when mental-health issues are on the rise because of COVID -19 and this may put even more pressure on people. I am urging everyone to reach out to their loved ones to ask how they are or offer a helping hand.”
The federal government is expected to wait to step in with relief funds until after AEMA releases its report on the disaster, which could take up to two weeks.
MLA Devinder Toor said he is helping people start submitting insurance claims.
“My constituents are strong and confident that we will get through this.”
Alberta continues to be one of the hardest-hit provinces by natural disasters, but they are becoming far more frequent nationwide, de Pruis said. From 1983 to 2008, the insurance industry was paying out an average of $400 million in damages across Canada. Over the past decade, the number has increased to an average of $1.9 billion per year — with inflation accounted for.