what is the status of flood insurance in Canada?

Battleacts2

I am a bit confusing about flood insurance in Canada.

(1) In IBC.Flood, we learn that Canada doesn't have a flood insurance program. ( Fear of adverse selection, under-investment, lack of hazard maps)

(2) In CAS.GovtIns, in the reason of government insurance , it says "for CONVENIENCE (Example: flood)

• government may already have necessary structures in place (government already provides disaster relief after floods)

(3) In CAS.GovtIns, in the bloom's question on 2014.Fall #10b, it asks "why should the government not be involved in flood insurance"

Do you have flood insurance in Canada? Private residential insurance, priviate commercial insurance, government insurance?

graham

Part of the reason this topic is confusing is that IBC.Flood is a Canadian reading whereas CAS.GovtIns is a U.S. reading. Another reason it's confusing is that the IBC.Flood reading was written in 2015 and the availability of private residential flood insurance has changed over the last 5 years.

The CAS.Govt exam question from 2014 asked you for reasons against Canada having a national flood insurance program. That doesn't mean we shouldn't have one, just that there are certain drawbacks. A better question would have been to ask you for reasons both for and against a government flood insurance program, and then ask you to assess whether we should create one.

To answer your last question:

• Private residential flood insurance in Canada generally covers bursting of pipes in all HO policies. You can also buy a sewer-backup endorsement. But historically, overland flooding was not available for residential properties. (This is starting to change with some private insurers in Alberta now offering overland flood coverage.)
• Private commercial flood insurance can be purchased that covers overland flooding.
• The Canadian government is not currently involved providing or coordinating flood insurance. (The Canadian government may provide disaster relief for catastrophes involving flood but that isn't the same thing as insurance.)

Battleacts2

It is very helpful. Thank you for explanation.