Cleaning efforts continue in Nova Scotia following the devastating floods that occurred last month. The federal government and the Canadian Insurance Bureau (BAC / IBC) are working to find a way to provide insurance for this type of damage.

Currently, standard insurance policies generally do not cover storm surges and surface flooding as they are considered high-risk.

Craig Stewart, Vice President for Climate Change and Federal Affairs at the Canadian Insurance Bureau, stated that the goal is to establish a national flood insurance program by April 1, 2025.

’’You will continue to purchase home insurance as you do through your current insurance company, but you will have the option to obtain comprehensive flood insurance,’’ Stewart clarified.

He also pointed out that collaboration with the federal government began two and a half years ago when the federal Minister of Public Safety invited a task force to consider how to improve flood response.

An official from the Canadian Insurance Bureau estimated that there are currently 1.5 million households living in areas at high risk of flooding.

According to last year’s federal budget, the government proposed to provide $31.7 million over three years starting from the 2023 - 2024 fiscal year to launch a ’’low-cost flood insurance program aimed at protecting high-risk households that do not have suitable insurance.’’

Details of the program are still being prepared, but Stewart says coverage will be around $300,000 with an insurance deductible ’’that will be affordable for everyone.’’

It is still unclear how much it will cost to include flood protection in the insurance policy. However, Stewart believes it will depend on the contents of the home, repair costs, and the level of risk.

’’If you decide that you do not want to purchase this insurance and pay for it, you cannot expect to receive compensation in the event of a disaster,’’ Stewart said.

For its part, the Department of Public Safety stated that property damage due to flooding will no longer be eligible for cost-sharing under federal disaster financial assistance provisions once flood insurance becomes available and affordable for Canadians.