Flood victims in southern Alberta hoping to make insurance claims to cover damage to their homes could be out of luck.
Most insurance policies in Canada donât cover damage caused by water that comes in through doors and windows -- known as âoverland flooding.â
âThe costs, the premiums would be very high,â Pete Karageorgos of the Insurance Board of Canada told Âéśš´ŤĂ˝.
âThus, you have governments in the U.K. and the U.S. and in other areas that might have flood programs typically funded by governments, the federal governments.â
However, Calgary southeast MP Jason Kenney said Monday that Ottawa has no plans to implement a federal flooding program.
âItâs not the role of the federal government to get into negotiating peopleâs individual claims or policies they may have with insurance companies,â he said.
Manitoba residents were offered an option to buy flooding insurance about a decade ago, but the premiums were so expensive that few individuals purchased it.
âWhere itâs such a small percentage of policy holders that live in flood zones or flood-prone areas, that it doesnât make it feasible or affordable,â said Andrew McNair of the Insurance Brokers Association of New Brunswick.
The Alberta government announced on Monday that it will provide $1 billion in funding to help flood recovery. The money will be used to run relief centres, rebuild infrastructure and support people who have been evacuated, according to Premier Alison Redford.
Displaced residents will also be provided with pre-loaded debit cards to cover day-to-day costs and home repairs, she said. Those who qualify will receive $1,250 per adult and $500 per child.
As for a federal contribution, with 23 communities still under a state of emergency across the province, the government isnât in a position to say, Kenney said.
âWe donât really have an estimate on that yet,â He told Power Play. âWeâre still dealing with the crisis element of this.â
Once the dust has settled, it will be up to the province and effected municipalities to essentially figure out what needs to be done and submit their expenses to the federal government, he said.
Kenney said Ottawa can reimburse up to 90 per cent of eligible expenses.
âWe will be there in a very major way financially but we do not get involved at the front end,â Kenney said.
Evacuation orders have been lifted and thousands of Calgary residents have returned home to flooded basements and furniture damaged beyond repair.
âWeâre starting to get a very, very rough picture of the amount of damage in peopleâs homes, as well as a rough picture of the amount of damage to public infrastructure,â Calgary Mayor Naheed Nenshi told CTVâs Power Play.
âIf there are people whose basements have been flooded, who are working on cleanups and renovations, thereâs a new normal. That will take a while.â
With a report from CTVâs Todd Battis