Hurricane Dorian Caused Over $100 Million in Insured Damage
Enhancing local projects to better protect Canadians from the effects of climate change
Halifax, NS (Oct. 4, 2019) – Hurricane Dorian hit Atlantic Canada on September 7 causing over $105 million in insured damage, according to Catastrophe Indices and Quantification Inc. (CatIQ). Seventy per cent of this amount is for damage to personal property, 25% is for damage to commercial property and the remaining amount is for damage to automobiles.
Insured damage* by Province:
- New Brunswick – $22.5 million
- Newfoundland & Labrador – $2.5 million
- Nova Scotia – $62.2 million
- Prince Edward Island – $17.5 million
- Quebec – $300,000
- Grand Total: $105 million
* Initial estimates
Hurricane Dorian wreaked havoc from the Bahamas to Atlantic Canada in early September. The weather system travelled through Atlantic Canada from September 7 to 8, 2019,and the cleanup lasted much longer. Halifax, Moncton and much of Prince Edward Island suffered a large portion of the damage, though damage reports were widespread across Atlantic Canada.
On September 7, Dorian became a post-tropical storm but maintained hurricane strength when it made landfall to the southwest of Halifax, with estimated sustained winds of 155 km/h. On the morning of September 8, the system hit the northeastern Gulf of St. Lawrence with strong southeasterly winds in Newfoundland. In the evening, the system tracked to the northeast across Newfoundland’s Great Northern Peninsula, with wind gusts ranging from 90 to 157 km/h.
Due to rainwater-saturated ground and trees being in full leaf, many large trees were uprooted across Atlantic Canada, and the region experienced numerous power outages. Heavy rainfall also caused road washouts and flooding of homes and businesses. The Magdalen Islands were severely affected as homes, cottages, and boats were damaged, and trees were uprooted; in several cases, and some cottages were blown off their foundations.
“Hurricane Dorian is another example of how devastating Mother Nature can be” said Amanda Dean, Vice-President, Atlantic, Insurance Bureau of Canada (IBC). “Severe, unpredictable weather like this is becoming more frequent, resulting in higher costs to homeowners, insurers and governments. Last year, insured damage from severe weather across Canada exceeded $2 billion, the fourth-highest amount of annual losses on record. That alarming trend has continued in 2019, with over $1 billion in insured losses recorded already this year.”
As the financial cost of the changing climate has been increasing, IBC has been working closely with all levels of government to increase investments to mitigate the future impacts of extreme weather and build resilience to its damaging effects. IBC is advocating for improved building codes, better land-use planning, incentives to shift the development of homes and businesses away from areas at highest risk of flooding, and investment in new infrastructure to protect communities from floods and fires.
The financial costs of severe weather are widespread adversely impacting insurers, policyholders and taxpayers , This is why all stakeholders need to come together to reduce the financial strain caused by floods and other severe weather events. For every dollar paid out in insurance claims for damaged homes, vehicles and businesses, Canadian governments and their taxpayers pay much more to recover the public infrastructure damaged by severe weather.
The amount of insured damage is an estimate provided by CatIQ (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.
About CatIQ
Toronto-based Catastrophe Indices and Quantification Inc. (CatIQ) delivers detailed analytical and meteorological information on Canadian natural and man-made catastrophes. Through its online subscription-based platform, CatIQ combines comprehensive insured loss and exposure indices and other related information to better serve the needs of the insurance / reinsurance / ILS industries, the public sector and other stakeholders. CatIQ was established in 2014 with the support of the overwhelming majority of the Canadian insurance and reinsurance industry and is widely recognized as the most reliable source of catastrophe loss information in Canada. To learn more, visit www.catiq.com.
Source: Insurance Bureau of Canada (IBC)
Tags: CatIQ, hurricanes, Insurance Bureau of Canada (IBC), insured damage Read the original article at Insurance-Canada.ca