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We have experienced another year of high storm activity in Alberta. For 2012 we can assume that that the hail season is over for this year. But ... with the changes in weather we are experiencing who really knows!
The reality of storm activity in insurance is that the premiums paid go back out to pay the losses. We are seeing some movement in the amount of money being charged by companies and coverage restrictions being placed on policies. The most common is higher deductibles for certain weather events. For some of the compannies we are hearing they are paying out more than $1.30 (combined losses and expenses) for every $1 being brought in to the company. As we watch the companies try to address changing weather patterns and increased storm activity we will see changing products on property insurance. Independent brokers are best able to guide you through the changes and find the best pricing and coverage options for each client. The best way to protect yourself is to review property insurance options, whether it is home insurance or business insurance. See -Property Insurance Explained.
Alberta government commits $58 million for disaster recovery after severe summer storms
Recently the Alberta Government pledged up to $58 million for disaster recovery programs to help offset uninsurable costs from severe weather damage this past summer. Six regional programs have been approved to offset uninsurable losses including:
- Up to $9.4 million for storms on June 5 and 6 (City of Calgary)
- Up to $32 million for July storm (City of Edmonton)
- Up to $3 million for storms on July 14 to 18 (Capital Region including Edmonton, Spruce Grove, Devon Beaumont and Parkland County)
- Up to $100,000 for storms on June 17 (City of Brooks)
- Up to $5 million for storms on July 23 to 21 (North Central Alberta)
- Up to $8.6 million for storms on June 26 to 30 (Special Areas 2, 3 and 4, Youngstown and Consort)
The numbers are based on preliminary estimates and may change following further assessments and repairs, the government noted in a statement. Under these programs, about 1,270 households could qualify for assistance.
"This funding will go a long way to help the communities and Albertans who experienced uninsurable losses because of this severe weather," Doug Griffiths, the province's Minister of Municipal Affairs said in a statement. "Plans are already moving forward to establish registration centres for Albertans who may qualify for assistance."
Local authorities can apply for disaster recovery programs for their residents, if the disaster is "considered extraordinary, and damage must be widespread and uninsurable," according to the province.
Storm activity this year caused many uninsured losses but many insured losses resulted as well. At Armour Insurance we are happy to do a free review of your home insurance policy and make recommendations on your coverage.