Insurance claims expected to reach over $40 million after severe storm in Calgary last week



    Consumers reminded overland flooding not covered by insurance,
    urged to be patient during claims process

    CALGARY, June 13 /CNW/ - Insurers have responded quickly to help
policyholders in the wake of the severe storms that swept through Alberta last
week. Calgary residents and insurers are now dealing with the damage caused by
the storms and flash flooding that followed on Tuesday, June 5.
    "In Calgary alone, there have been 3,094 insurance claims so far as a
result of the storms, and insurers expect to pay $42 million to cover these
claims," stated Jim Rivait, Vice-President, Prairies, NWT and Nunavut,
Insurance Bureau of Canada (IBC). "When including claims from Edmonton, the
numbers rise to 3,447 claims and an expected $48 million in payouts. The
insured damage has been mostly sewer back-up in homes, and some auto claims."
    Residents are reminded that damage caused by overland flooding and
seepage cannot be covered by home insurance. Generally, overland flooding is
only a risk for the small percentage of the population who live in a flood
plain and since the purpose of insurance is to spread risk amongst many
policyholders, flood insurance for those at risk would be unaffordable.
    "Insurance Bureau of Canada (IBC) urges homeowners to be patient during
the claims process," Rivait said. "The booming economy in Alberta has resulted
in a labour shortage which impacts residents particularly in times like this
as it can be difficult to find contractors."
    Rivait added: "The provincial government has now officially declared the
storm a disaster. The industry will be working closely with Alberta Disaster
Services and we expect that everyone with insured or uninsurable losses will
be taken care of."

    Insurance Bureau of Canada is the national trade association of the
private property and casualty insurance industry. It represents more than 90%
of the non-government home, car and business insurance in Canada. To view news
releases and information, visit the media section of IBC's website at
www.ibc.ca.




For further information:

For further information: James Geuzebroek, (416) 362-2031


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