Edmonton Hailstorm Caused $90 million in Insured Damages

Edmonton, AB (Aug. 27, 2019) – The hailstorm that took place on August 2, 2019 in the Edmonton area caused an estimated $90 million in insured damages, according to Catastrophe Indices and Quantification (CatIQ) Inc.

Initial estimates of insured damage by type of insurance are as follows:

• Personal Property​: $39.5 million​*
• Commercial Property: $3.4 million​*
• Auto​: $46.9 million​*

The storm began with heavy rain, followed by thunderstorms and heavy winds that reached 91 km/hr. Large hail damaged house siding and vehicles in west Edmonton, Spruce Grove and Stony Plain. The storm also damaged crops to the northwest of Edmonton.

“Severe weather is causing headaches for homeowners and is costing insurers, governments and Albertans significantly,” said Celyeste Power, Vice-President, Western, IBC. “Last year, insured damage from severe weather across Canada reached $2 billion, the fourth-highest amount of annual losses on record. Unlike the 2013 Calgary floods or the 2016 Fort McMurray wildfire, no single event caused the high amount paid out for 2018’s losses. Instead, Canadians and their insurers experienced significant losses from a host of smaller severe weather events from coast to coast to coast.”

As the financial cost of a changing climate has increased, IBC is working closely with governments at all levels to advocate for increased investment to mitigate the future impacts of extreme weather and build resilience to its damaging effects. This includes advocating for investment in new infrastructure to protect communities from floods and fires, improved building codes, better land-use planning and, increasingly, creation of incentives to shift the development of homes and businesses away from areas of highest risk.

It is not only insurers that foot the bill for severe weather damage, but also taxpayers. That’s why all stakeholders should come together to reduce the financial strain caused by flood and other severe weather events. For every dollar paid out in insurance claims for damaged homes and businesses, Canadian governments and their taxpayers pay much more to recover public infrastructure damaged by severe weather.

* The amount of insured damage is an estimate provided by CatIQ Inc. (www.catiq.com) under licence to IBC.

About Insurance Bureau of Canada

Insurance Bureau of Canada (IBC) is the national industry association representing Canada’s private home, auto and business insurers. Its member companies make up 90% of the property and casualty (P&C) insurance market in Canada. For more than 50 years, IBC has worked with governments across the country to help make affordable home, auto and business insurance available for all Canadians. IBC supports the vision of consumers and governments trusting, valuing and supporting the private P&C insurance industry. It champions key issues and helps educate consumers on how best to protect their homes, cars, businesses and properties.

P&C insurance touches the lives of nearly every Canadian and plays a critical role in keeping businesses safe and the Canadian economy strong. It employs more than 128,000 Canadians, pays $9.4 billion in taxes and has a total premium base of $59.6 billion.

For more information, visit www.ibc.ca.

Source: Insurance Bureau of Canada (IBC)

Tags: Alberta, Insurance Bureau of Canada (IBC), insured damage, severe weather Read the original article at Insurance-Canada.ca