Flood cost $850M in damages
Record rainfall, flash flooding caused Ontario’s most expensive natural disaster, preliminary insurance estimates show
The storm and flash flooding that hit the GTA on July 8 has set a record for the province’s most expensive natural disaster, according to the Insurance Bureau of Canada. A preliminary estimate of insured property damage is already more than $850 million, IBC said Wednesday.
“While these preliminary estimates are staggering, we do expect them to go even higher,” IBC Ontario vice-president Ralph Palumbo said in a statement.
“While these preliminary estimates are staggering, we do expect them to go even higher.” RALPH PALUMBO INSURANCE BUREAU OF CANADA
In Toronto alone, the storm resulted in record rainfall, travel chaos and power being knocked out for about 300,000 residents.
“I’m not surprised,” Greg Carraro said Wednesday when told the total cost.
The high school teacher, who lives in Mississauga’s Cooksville neighbourhood with his wife and two young sons, only returned to live in his home days ago, after weeks of cleaning.
“The cleanup the next day was the really sobering moment. There were a couple of thick inches of mud on our basement floor and a really horrible smell. That’s when the reality kicked in,” said Carraro, who knows personally that the storm’s costs go way beyond insured damage. His home was also hit with flooding in 2009, and insurance helped redo his basement. But this time, with more extensive damage — the drywall, furniture and stereo equipment were hit — Carraro said his insurance hasn’t come close to covering the true cost. “I knew our insurance was . . . limited because of our 2009 flood,” he said. “So we’ve been penalized . . . that really hurt and I don’t understand why that was the case. I don’t think that’s fair.” While Carraro was aware of his limited insurance before this summer’s flood, IBC spokesman Steve Kee said others have been surprised by what their insurance did and didn’t cover. “Some people might know what’s in their policy but a lot of people don’t know,” he said, adding people should check specifics, including backed-up sewers and car flooding. A GO Train was stranded by floodwaters and cars were abandoned during the 126 millimetres of rain recorded at Pearson International Airport. The day after the downpour, Toronto Mayor Rob Ford said the power system was “hanging by a thread” and Mississauga later asked the province for disaster relief. Palumbo said in a statement that the insurance industry was prepared and is able to fulfill obligations to customers but there needs to be further preparation for more frequent severe weather. The dollar figure was reported by PCS-Canada Service, which tracks losses from Canadian catastrophic events. PCS previously found that a wind and rain storm in August 2005 cost $671 million and four days of heavy rain in July 2009 cost $228 million.
The most expensive storm in Canadian history so far was the Quebec ice storm of 1998, with economic consequences totalling more than $1.5 billion, Kee said.
There’s no estimate yet for the flooding in Alberta in June and July, as cleanup work continues and tabulations are changing almost daily.
In two months, Ontario insurers will be asked to update the estimate of total insured losses in Toronto and elsewhere in the province.
Carraro said he won’t risk another storm in his neighbourhood, which was one of the most devastated — he was out house-hunting Wednesday.
“We’re in the process of looking for a new home because it would stupid for us to stay and wait for the third flood,” he said, “because it will come.”