Insurance policies changing in wake of floods

Insurance companies are rethinking what coverage they offer, and at what cost, following the heavy rains and flooding that swamped Toronto and parts of Alberta this summer. Water damage is now a “major issue” for insurers, unlike years past when such coverage was often tacked on to policies as an after-thought, according to Greg Robertson of R. Robertson Insurance Brokers in Toronto. “Back in the day, water coverage was inexpensive because water wasn’t as big an issue,” Robertson said Thursday on CBC Radio’s Metro Morning. “But now the changes to weather patterns cause rains to come on strong, sudden, and to dump extreme amounts of water.” The total cost of the flooding in Alberta is estimated at over $5 billion. The cost to insurers from Toronto’s flood is pegged at $850 million. People are also putting a lot more money into their basements, Robertson added, as the threadbare carpets, concrete walls and beaten-up furniture of the past give way to fully and expensively tricked-out living spaces.