Public Safety Canada (PSC) said cabinet is committed to mandating insurance for property owners on flood plains, according to Blacklock’s Reporter. “The Government of Canada is committed to introducing a solution for flood insurance for Canadians,” said PSC in a briefing note. At the moment, PSC said compelling homeowners to buy flood insurance was a priority. No deadline was set for the introduction of legislation.“Flooding continues to be the most frequent and costly natural disaster facing Canadians — estimated to cause $2.97 billion in direct damage to residential properties annually,” it said. “That is why the Government of Canada is taking steps to prioritize flood risk.”It acknowledged the program would be mandated through the Canada Mortgage and Housing Corporation (CMHC). The CMHC would oversee a national insurance pool for homeowners unwilling or unable to buy private insurance. Homeowners who decline would be disqualified from aid under Disaster Financial Assistance Arrangements. “Once flood insurance is available and affordable to Canadians, flood-related damage to residential properties will no longer be eligible for federal cost sharing,” said PSC. “However, cost sharing for other types of government support such as evacuations, emergency response, psychosocial support, clearing transportation routes and other assistance will remain eligible.”The Insurance Bureau of Canada said about one million homes (20%) on flood plains are ineligible for private insurance. A Canadian government report to Parliament recommended in April to limit federal disaster aid where municipalities allow development on flood plains.READ MORE: Government flood insurance costs to rise to $15.4 billion by 2030The cabinet-appointed task force raised concerns about the financial burden on taxpayers to compensate owners of expensive waterfront property that is uninsurable.“Many governments permit developments in high-risk areas and choose not to purchase insurance for public infrastructure because they can rely on the program to pay for the majority of damage costs in the event of a disaster,” said the task force.
Public Safety Canada (PSC) said cabinet is committed to mandating insurance for property owners on flood plains, according to Blacklock’s Reporter. “The Government of Canada is committed to introducing a solution for flood insurance for Canadians,” said PSC in a briefing note. At the moment, PSC said compelling homeowners to buy flood insurance was a priority. No deadline was set for the introduction of legislation.“Flooding continues to be the most frequent and costly natural disaster facing Canadians — estimated to cause $2.97 billion in direct damage to residential properties annually,” it said. “That is why the Government of Canada is taking steps to prioritize flood risk.”It acknowledged the program would be mandated through the Canada Mortgage and Housing Corporation (CMHC). The CMHC would oversee a national insurance pool for homeowners unwilling or unable to buy private insurance. Homeowners who decline would be disqualified from aid under Disaster Financial Assistance Arrangements. “Once flood insurance is available and affordable to Canadians, flood-related damage to residential properties will no longer be eligible for federal cost sharing,” said PSC. “However, cost sharing for other types of government support such as evacuations, emergency response, psychosocial support, clearing transportation routes and other assistance will remain eligible.”The Insurance Bureau of Canada said about one million homes (20%) on flood plains are ineligible for private insurance. A Canadian government report to Parliament recommended in April to limit federal disaster aid where municipalities allow development on flood plains.READ MORE: Government flood insurance costs to rise to $15.4 billion by 2030The cabinet-appointed task force raised concerns about the financial burden on taxpayers to compensate owners of expensive waterfront property that is uninsurable.“Many governments permit developments in high-risk areas and choose not to purchase insurance for public infrastructure because they can rely on the program to pay for the majority of damage costs in the event of a disaster,” said the task force.
