With severe weather on the rise, deductibles also increasing

October 23rd, 2014 by admin

The increasing incidence of severe weather events is leading to higher home insurance deductibles, reports The Insurance Bureau of Canada (IBC). In addition, this is a phenomenon not unique to particular regions of Canada, but one which is impacting all of the country.

"Each insurer is clearly faced with what is happening all around us," said Amanda Dean, vice president Atlantic of the Insurance Bureau of Canada.

Dean added that governments and insurers are both having to contend with the spike in severe weather events, brought on by climate change, which can cause a number of severe problems. Sewer backup—an issue we've discussed in the past—is one major point of concern. 

Heavy rainfall in September led to sewage backup in Charlottetown and Cornwall. Typically, excess water and melting snow are the causes for backup, CBC notes. 

In addition, these increases are more pronounced in some regions. Prince Edward Island, for example, has seen rates triple since the late 1990s. 

In line with this news, we noted in an previous article on this blog that water has surpassed fire as the main cause of loss in much of Canada. The IBC also offered tips to homeowners to reduce the risk of damages from sewer backup. It tells homeowners to move basement items to the upper floors of your home. In addition, homeowners can install sump pumps and backwater plugs for drains, toilets and other sewer connections.

If you suspect that flooding is imminent, you should shut off electricity immediately to the affected areas of your home.

For answers to all of your home insurance questions, contact Fundy Mutual. We will help you reduce the risk of flooding to your home, along with other severe weather events.