Real estate professionals understand insurance risks related to fire, such as knob and tube wiring and insulbrick siding. In the coming years our industry will be dealing with flood and sewage backup risk and insurability as a course of business.
You don’t have to be a climatologist, lawyer or insurance broker to understand there is increased risk for real estate professionals and homeowners in the face of changing and more severe weather patterns. Insurers warn that storm water related property damage is quickly becoming the most prevalent insurance risks for homeowners. Basement flooding is one of the most common weather-related property damage claims.
What can you do to protect clients from liability? It is important to know that every region of Canada has different climate and weather risks. Municipal governments across Canada are investigating how to reduce risk to homeowners. As an example, in Toronto, 42 neighbourhoods have been identified as being “at risk” of basement flooding. Municipalities and insurers are addressing basement flooding aggressively, with reduced coverage, constrained coverage parameters and risk-reduction strategies such as back-flow prevention valves.
“The insurance industry sees increasingly frequent natural disasters. In financial terms, the cost of damage from natural disasters has doubled every five to seven years since the 1960s. In human terms, more families are suffering unnecessary losses,” says Kathy Bardswick, president and CEO of The Co-operators and chairperson of the Institute for Catastrophic Loss Reduction. “We feel a responsibility to respond to the
realities of today’s weather by promoting flood protection to homeowners in Canada.”
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