Real Estate

Insurance - Fort McMurray Fire

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  • Jul 7th, 2016 5:25 pm
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Deal Addict
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Aug 4, 2003
3009 posts
1629 upvotes
Cough wrote: Living in Alberta, my home insurance costs almost doubled due to payouts to flood victims two years ago. Now they are going to go up again.

So I hope that wonderful Trudeau pays out and NOT the insurance companies.
Are you serious? You have a choice not to own a home and not pay home insurance. I would advice exercising one of the options.
Deal Fanatic
Dec 28, 2007
5348 posts
4356 upvotes
Redguard wrote: From what I understand, a lot of insurance companies have an "Act of God" clause that relieves them from having to pay out under circumstances like this.
Could argue wildfire is act of men.
Deal Expert
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Jul 30, 2007
33237 posts
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Toronto
Just watching Cbc news and the estimate insurance cost to rebuild 50% of the town will cost about $4.7 billion (source : bmo). It will be the costliest insurance claim in cdn history.

The Quebec ice storm cost about $2 billion
Deal Addict
Jan 26, 2016
2240 posts
2272 upvotes
Toronto, ON
Cough wrote: Living in Alberta, my home insurance costs almost doubled due to payouts to flood victims two years ago. Now they are going to go up again.

So I hope that wonderful Trudeau pays out and NOT the insurance companies.
why????
Member
Apr 26, 2016
201 posts
62 upvotes
Toronto, ON
lenkov wrote: Thanks for your insight on flooding - the info on "water escape" and "overland flooding" coverage is useful.
'overland flooding' is a joke. I remember this being an exclusion after the Alberta flooding. Funny, some policies excluded 'overland flooding' until the media got involved, and started covering every floor damaged home, once Aviva committed

Wonder what insurers will call wildfires moving forward...
Deal Expert
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Apr 21, 2004
58648 posts
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Redguard wrote: From what I understand, a lot of insurance companies have an "Act of God" clause that relieves them from having to pay out under circumstances like this.
What if the forest fire was caused by an arsonist?
Sr. Member
Jan 16, 2010
566 posts
123 upvotes
Cough wrote: Living in Alberta, my home insurance costs almost doubled due to payouts to flood victims two years ago. Now they are going to go up again.

So I hope that wonderful Trudeau pays out and NOT the insurance companies.
This is a nonsensical post. Insurance is pooled risk, and catastrophic events (like this) will cause a broad increase in premiums (in other provinces as well, to varying degrees). That's how insurance works. Insurance rates a volatile for exactly this reason.

Insurers also subsequently sell the underlying risk to other insurance companies (through reinsurance), so the entire industry in Canada is going to feel the effects of this event even if they don't operate in Alberta.
Deal Expert
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Dec 7, 2012
32228 posts
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GTHA
A whopping $3.58 billion: Fort McMurray fires was the costliest event ever for Canadian insurers
CALGARY — The devastating wildfires that forced Fort McMurray residents to flee their homes and caused oilsands companies to shut down their plants will cost insurance companies $3.58 billion, making it the most expensive disaster for insurers in Canadian history by a wide margin.

“There is little doubt that the Fort McMurray wildfire is one of the most horrific and damaging natural disasters in Canadian history,” Insurance Bureau of Canada vice-president western and Pacific Bill Adams said on a conference call Thursday.

The $3.58 billion is roughly twice the $1.8 billion in insurable claims that followed the 2013 flooding in southern Alberta and more than three times the $742 million in claims from the fire that burned much of Slave Lake, Alta. in 2011.

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