Pam Welt, whose house collapsed on the Nicholas River last November, said she and her husband, Paulus, believed they were fully insured. “We thought we were covered,” he said. “I finally realized we had no home left. And everything we’ve worked hard for is gone.” The Velts had just started retiring to farm property along Highway 8 west of Merritt, BC, and planned to leave it to their son, who also lived with them. They are now flying in a 12-foot trailer with the support of the Canadian Red Cross. Although he paid extra for inland flood insurance, which covers damage from heavy rainfall and river overflows, Velt said they were shocked by the payment and questioned it. A copy of the Velts insurance coverage shows that their main contract covers a total property coverage of $ 674,050, including $ 313,500 for their home and other coverage for additional construction, personal property and loss of use. Under additional and optional coverage, the amount of land flood insurance is reported as $ 30,000. Their insurance company, Wawanesa Mutual Insurance Company, said it could not comment on the details of a claim or the details of a dispute in order to protect the privacy of its counterparties. There are many options open to contract holders who disagree with the company’s decisions, including contacting General Insurance OmbudService and the Financial Consumer Agency of Canada, he said. The foundations of a house are exposed after a flood on the Nicola River near Merritt, BC, on November 19, 2021. (Maggie MacPherson / CBC)
Prior to 2015, the only available financial compensation for flood damage to homes in Canada was through disaster financial assistance programs provided by the federal and state governments, said Wawanesa spokesman Brad Hartl. The company is one of 30 companies across Canada that now offer some level of flood coverage. “Some homes are at greater risk of land flooding than others and this is reflected in the coverage available and the price charged,” he said.

“The river just captured it,” says the couple from BC. who lost the whole farm to floods

Paul and Pam Velt describe seeing their home in Merritt, BC, swept away by the floods on Monday afternoon. 8:34

The cost of insurance associated with extreme weather events has skyrocketed

Rob de Pruis, National Director of Consumer and Industry Relations at the Insurance Bureau of Canada, said the cost of insurance related to extreme weather has increased over the past decade. The national average is $ 2.1 billion a year, up from $ 422 million between 1983 and 2008. “The insurance industry has seen an increase in the frequency and severity of severe weather and we have been sounding the alarm for years,” he said. The November floods were the most costly disaster in the history of BC, with insurance costs estimated at $ 515 million in January. That number is likely to increase and does not include uninsured costs, the office said. The best estimate based on anecdotal evidence is that about 30 percent of properties in high-impact areas had some level of land flood coverage, de Pruis said, but there is no official count. About 800,000 properties in high-risk areas across Canada remain ineligible for coverage, he said. Merritt was photographed on November 14, 2021, after more than one day of extreme rain in southern BC. (Submitted by Bailee Allen)
The Insurance Agency of Canada is working with the federal government to develop a flood map and flood plan to increase eligibility for coverage for those currently uninsured, he said. It is currently up to individual companies to determine how much coverage they will offer in hazardous areas such as floodplains and along rivers. Pricing is difficult because some risks are so high that adequate coverage would be unaffordable, de Pruis said. “As the risk starts to increase, the cost increases and the coverage limits can be reduced,” he said. In a news release this week, the BC government urged British Colombians to prepare for disaster by buying home insurance. However, he notes that flood insurance can be difficult to obtain. “While home flood insurance may be limited to higher risk areas, insurance agents can help you determine if home flood insurance or backup sewer coverage is available for your property,” the government said. Months after the flood, Velt said she and her husband continue to pay home mortgages and also pay for insurance to protect themselves from liability if someone is injured on the property. The last time Velt was home, she tried to open the door to save her pets. She wore boots and hoods, but with the changing seasons, Velt said she realized she needed a whole new summer wardrobe. “When you leave with what you have on your back, you have nothing. Summer is coming now. I tried to explain to the Red Cross, we do not have shorts,” he said. The government of BC has said flood victims are entitled to up to $ 300,000 in disaster financial assistance, and Welt said she hopes this will be done soon. For now, she said she is grateful for the support of her friends and family. “We are in a vacuum,” he said.


title: “B.C. Flood Survivor Warns Others To Check Insurance Amid Increase In Climate Disasters " ShowToc: true date: “2022-11-20” author: “William Reiland”


Pam Welt, whose house collapsed on the Nicholas River last November, said she and her husband, Paulus, believed they were fully insured. “We thought we were covered,” he said. “I finally realized we had no home left. And everything we’ve worked hard for is gone.” The Velts had just started retiring to farm property along Highway 8 west of Merritt, BC, and planned to leave it to their son, who also lived with them. They are now flying in a 12-foot trailer with the support of the Canadian Red Cross. Although he paid extra for inland flood insurance, which covers damage from heavy rainfall and river overflows, Velt said they were shocked by the payment and questioned it. A copy of the Velts insurance coverage shows that their main contract covers a total property coverage of $ 674,050, including $ 313,500 for their home and other coverage for additional construction, personal property and loss of use. Under additional and optional coverage, the amount of land flood insurance is reported as $ 30,000. Their insurance company, Wawanesa Mutual Insurance Company, said it could not comment on the details of a claim or the details of a dispute in order to protect the privacy of its counterparties. There are many options open to contract holders who disagree with the company’s decisions, including contacting General Insurance OmbudService and the Financial Consumer Agency of Canada, he said. The foundations of a house are exposed after a flood on the Nicola River near Merritt, BC, on November 19, 2021. (Maggie MacPherson / CBC)
Prior to 2015, the only available financial compensation for flood damage to homes in Canada was through disaster financial assistance programs provided by the federal and state governments, said Wawanesa spokesman Brad Hartl. The company is one of 30 companies across Canada that now offer some level of flood coverage. “Some homes are at greater risk of land flooding than others and this is reflected in the coverage available and the price charged,” he said.

“The river just captured it,” says the couple from BC. who lost the whole farm to floods

Paul and Pam Velt describe seeing their home in Merritt, BC, swept away by the floods on Monday afternoon. 8:34

The cost of insurance associated with extreme weather events has skyrocketed

Rob de Pruis, National Director of Consumer and Industry Relations at the Insurance Bureau of Canada, said the cost of insurance related to extreme weather has increased over the past decade. The national average is $ 2.1 billion a year, up from $ 422 million between 1983 and 2008. “The insurance industry has seen an increase in the frequency and severity of severe weather and we have been sounding the alarm for years,” he said. The November floods were the most costly disaster in the history of BC, with insurance costs estimated at $ 515 million in January. That number is likely to increase and does not include uninsured costs, the office said. The best estimate based on anecdotal evidence is that about 30 percent of properties in high-impact areas had some level of land flood coverage, de Pruis said, but there is no official count. About 800,000 properties in high-risk areas across Canada remain ineligible for coverage, he said. Merritt was photographed on November 14, 2021, after more than one day of extreme rain in southern BC. (Submitted by Bailee Allen)
The Insurance Agency of Canada is working with the federal government to develop a flood map and flood plan to increase eligibility for coverage for those currently uninsured, he said. It is currently up to individual companies to determine how much coverage they will offer in hazardous areas such as floodplains and along rivers. Pricing is difficult because some risks are so high that adequate coverage would be unaffordable, de Pruis said. “As the risk starts to increase, the cost increases and the coverage limits can be reduced,” he said. In a news release this week, the BC government urged British Colombians to prepare for disaster by buying home insurance. However, he notes that flood insurance can be difficult to obtain. “While home flood insurance may be limited to higher risk areas, insurance agents can help you determine if home flood insurance or backup sewer coverage is available for your property,” the government said. Months after the flood, Velt said she and her husband continue to pay home mortgages and also pay for insurance to protect themselves from liability if someone is injured on the property. The last time Velt was home, she tried to open the door to save her pets. She wore boots and hoods, but with the changing seasons, Velt said she realized she needed a whole new summer wardrobe. “When you leave with what you have on your back, you have nothing. Summer is coming now. I tried to explain to the Red Cross, we do not have shorts,” he said. The government of BC has said flood victims are entitled to up to $ 300,000 in disaster financial assistance, and Welt said she hopes this will be done soon. For now, she said she is grateful for the support of her friends and family. “We are in a vacuum,” he said.