May 28, 2020 (VANCOUVER) – The storm that hit British Columbia (BC) January 31 caused over $42 million in insured damage, according to Catastrophe Indices and Quantification Inc. (CatIQ).*
The relentless rainfall led to flash-flooding, landslides and flooded properties across the Lower Mainland and southern Vancouver Island. There were washouts at the CN Rail in the Fraser Valley and Squamish Valley Road on the Sunshine Coast. Notably, a mudslide damaged 1 km of road and stranded up to 500 people at the Sasquatch Mountain Resort. Strong winds also knocked out power to over 37,000 homes and businesses across the Lower Mainland due to downed trees on power lines.
"This storm is just another example of how devastating Mother Nature can be," said Aaron Sutherland, Vice-President, Pacific, Insurance Bureau of Canada. "Severe, unpredictable weather like this is becoming more frequent, resulting in higher costs to homeowners, insurers and governments," added Sutherland.
Between 1983-2008 insured losses due to severe weather averaged $422 million per year (adjusted for inflation). Since 2009, these losses have averaged nearly $2 billion annually.
As the financial cost of severe weather rises, Insurance Bureau of Canada (IBC) is advocating that government increase investment in mitigating the impact of extreme weather and building resilience against its damaging effects. This includes investing in upgraded infrastructure to protect communities from floods and fires, improved building codes, better land-use planning, and incentives to shift the development of homes and businesses away from areas at highest risk of flooding.
Severe weather damage isn't just increasing costs for insurers. For every dollar paid out in insurance claims for damaged homes and businesses, Canadian governments and taxpayers pay out much more to repair public infrastructure damaged by severe weather That's why we all must come together to reduce the financial strain caused by flood events.
Visit IBC's website for information on how to prepare for a disaster.
*CatIQ estimated the amount of insured damage under licence to IBC. For more information on CatIQ, visit www.catiq.com.