A long-awaited national flood insurance program will be available in about 18 months, according to the Department of Public Safety. Blacklock's Reporter says under the plan, homeowners in flood-prone areas could pay up to $900 annually for coverage, with the risk of being ineligible for disaster relief if they opt out.“This is a priority file for the government,” the department noted in a statement to the Senate national finance committee, adding that more details will be disclosed as they become available. The program, crafted by a Task Force on Flood Insurance, aims to provide affordable coverage through the Canada Mortgage and Housing Corporation (CMHC), which was instructed to “advance implementation of a national flood insurance program by 2025.”Provincial regulators and the Task Force, including experts from universities such as Waterloo and Laval, have been meeting to finalize details and ensure long-term financial sustainability for the program, which could include cost-sharing and risk mitigation measures.The Task Force was established in response to taxpayer concerns over the billions spent on disaster relief for uninsured homeowners. In high-risk areas, many homeowners have little to no insurance, relying instead on taxpayer-funded disaster assistance or bearing the financial burden themselves. “This market failure is what the Task Force is meant to address,” the group wrote in its 2022 report, Adapting To Rising Flood Risk.Flooding is Canada's most frequent and costly natural disaster, causing $1.5 billion in annual damage to homes and infrastructure. The Insurance Bureau of Canada estimates that 10% of residential properties are at risk, with 80% of cities having neighborhoods on flood plains. However, even with insurers offering optional flood coverage since 2015, uptake remains low.To address this, the Task Force’s Flood Risk report recommended mandatory coverage for high-risk properties, with annual premiums between $700 and $900, a $5,000 deductible, and a maximum payout of $300,000. The report criticized local governments and developers for land-use decisions that often increase flood risk while benefiting from rising property values and tax revenues. “Meanwhile, federal and provincial levels of government bear up to 90% of the public costs to recover and rebuild when floods occur,” the report noted.
A long-awaited national flood insurance program will be available in about 18 months, according to the Department of Public Safety. Blacklock's Reporter says under the plan, homeowners in flood-prone areas could pay up to $900 annually for coverage, with the risk of being ineligible for disaster relief if they opt out.“This is a priority file for the government,” the department noted in a statement to the Senate national finance committee, adding that more details will be disclosed as they become available. The program, crafted by a Task Force on Flood Insurance, aims to provide affordable coverage through the Canada Mortgage and Housing Corporation (CMHC), which was instructed to “advance implementation of a national flood insurance program by 2025.”Provincial regulators and the Task Force, including experts from universities such as Waterloo and Laval, have been meeting to finalize details and ensure long-term financial sustainability for the program, which could include cost-sharing and risk mitigation measures.The Task Force was established in response to taxpayer concerns over the billions spent on disaster relief for uninsured homeowners. In high-risk areas, many homeowners have little to no insurance, relying instead on taxpayer-funded disaster assistance or bearing the financial burden themselves. “This market failure is what the Task Force is meant to address,” the group wrote in its 2022 report, Adapting To Rising Flood Risk.Flooding is Canada's most frequent and costly natural disaster, causing $1.5 billion in annual damage to homes and infrastructure. The Insurance Bureau of Canada estimates that 10% of residential properties are at risk, with 80% of cities having neighborhoods on flood plains. However, even with insurers offering optional flood coverage since 2015, uptake remains low.To address this, the Task Force’s Flood Risk report recommended mandatory coverage for high-risk properties, with annual premiums between $700 and $900, a $5,000 deductible, and a maximum payout of $300,000. The report criticized local governments and developers for land-use decisions that often increase flood risk while benefiting from rising property values and tax revenues. “Meanwhile, federal and provincial levels of government bear up to 90% of the public costs to recover and rebuild when floods occur,” the report noted.
