July Storms Land Insurers With $158 Million-Plus Tab

Two massive summer storms struck insurers a hefty blow in July with the total insured loss pegged at around $158 million, according to preliminary data collected by the Insurance Bureau of Canada. The first storm brought heavy rain and hail to Edmonton, Alberta, resulting in large areas of flooding. The second storm event caused flooding in Peterborough, Ontario.

Early claims estimates resulting from the recent Peterborough, Ontario floods show insurers paying out close to $71 million, says Eve Patterson, regional manager for the Insurance Bureau of Canada (IBC). She says with the major writers having reported thus far, 4,371 claims have been logged for estimated insured losses of $70.8 million. But this number will rise, she adds.

While most people suffering water damage from the Peterborough floods, which took place in mid-July, will have reported their claims, Patterson says insurers will be adjusting the amounts actually paid out on those claims, and the numbers will grow. The majority of claims are for personal property sewer back-up, with 3,912 claims estimated to cost insurers $61.6 million. There have been fewer auto claims filed thus far, Patterson notes, with 263 claims estimated at $1.1 million. The remainder, 181 claims worth $8.1 million, relate to commercial property water damage claims.

The Peterborough storms resulted in rainfall accumulations as high as 230mm in some areas. The Ontario provincial government declared a state of emergency. Private businesses, including several insurers, have donated to the relief efforts underway.

Meanwhile, insured losses from the hail and rainstorm which caused widespread flooding in the Edmonton area prompted insurers to boost their reserves by $87 million, the total insured loss of which will likely rise, comments Louise Bremness, manager of regional services at the IBC.

With 19 insurers reporting preliminary claims figures, Bremness says about 75% of the nearly 6,200 claims fall under homeowners’ policies. Less than 5% are for auto damage as a result of rain and hail, while the remainder consists of commercial claims. However, the cost tally revealed does not include losses sustained at the West Edmonton Mall, where several stores were shut down for days as a result of flooding. The storm brought hail and about 150mm of rain, with reports of tornadoes in Morinville and Andrew.