Hurricane Fiona causes $660 million in insured damage

The storm is the costliest extreme weather event ever recorded in Atlantic Canada

HALIFAX, N.S., October 19, 2022 /CNW/ – Hurricane Fiona is estimated to have caused $660 million of insured damage, according to initial estimates from Catastrophe Indices and Quantification Inc. (CatIQ).

Hurricane Fiona is the costliest extreme weather event on record in Atlantic Canada and the tenth largest of Canada in terms of insured damage – surpassing the 2011 Slave Lake wildfire. This long and powerful storm first made landfall in Atlantic Canada on Saturday, September 24, 2022. With maximum wind gusts exceeding 100 km/h in Atlantic Canada and Eastern QuebecHurricane Fiona brought tragic loss of life as well as high winds, torrential rains, large waves, storm surges, downed trees and widespread power outages.

Although the estimate $660 million insured damage is a record number, many affected residents were in high-risk flood zones and flood plains where residential flood insurance coverage is not available. Therefore, the overwhelming majority of the costs of this disaster will be borne by the government.

“As we begin to see the extent of the damage caused by Hurricane Fiona, it is clear that much more needs to be done to improve our resilience to extreme weather events and build a culture of preparedness to move forward. before,” said Amanda DeanVice President, Atlantic, Insurance Bureau of Canada (IBC). “Climate change is real, and the deaths, emotional turmoil and financial consequences we have witnessed must be a call to action – we must prioritize protecting all Canadians from the impacts of climate change. .”

Bad weather insurance claims have more than quadrupled Canada since 2008. The new standard for catastrophic damage insured in Canada has reached $2 billion annually. BAC continues to advocate with governments to act on the urgent need to do more to prioritize investments that build resilience and better protect families and communities from climate change.

IBC led conversations with federal and provincial governments on ways to better protect communities in the future and better manage flood costs for high-risk residential properties in Canada. As a member of the Federal-Provincial-Territorial Working Group on Flood Insurance and Relocation, IBC has proposed options for creating a residential flood insurance program – including a public partnership model – private – which would make affordable insurance available to residents of high-risk areas. These recent floods remind us of the urgency with which we must move forward in these discussions.

Canada must prioritize its work on a national adaptation strategy, including a high-risk flood insurance pool, to deal with climate-related disasters such as extreme heat, wildfires, floods , windstorms and hail. Increased collaboration between the public and private sectors is essential to protect Canadians from these events.

Here is a provincial breakdown of the insured damage estimates from Hurricane Fiona:

New Scotland – More $385 million in insured damage:

In New Scotlandtree damage was widespread, with many large trees falling on cars and buildings in Halifax. Cape Breton Island and Pictou County suffered significant damage including extensive flooding, roofs torn off buildings, washed out roads and storm surges. Power outages exceeded 415,000 customers in New Scotland on Saturday September 24leaving about 80% of the province without electricity.

Prince Edward Island – More $220 million in insured damage:

Hurricane Fiona hit hard Prince Edward Island, with damage reported across the island. Damage included homes displaced from their foundations by storm surge and roofs ripped off by the wind. Trees and power lines were damaged or snapped/uprooted across the island, leaving 82,000 customers without power per Sunday September 25. This represents 95% of the total customers on the island. Significant beach erosion has also affected much of the north coast.

New Brunswick – More $30 million in insured damage:

New Brunswick was spared much of the damage from Hurricane Fiona due to the storm’s eastern track. However, the province continued to experience widespread power outages in Saint Jean, Fredericton, Moncton and the Acadian Peninsula. Structural damage was primarily located along the Northumberland Strait and near the New Scotland border, with tall felled trees and branches.

Quebec – More $11 million in insured damage:

The Magdalen Islands experienced significant flooding, with many homes and businesses flooded to a depth of several feet. Flooding and erosion from large waves associated with storm surges have been reported along parts of the Gaspé Peninsula coast.

Newfoundland and Labrador – More $7 million in insured damage:

Southwestern Newfoundland was particularly affected by Hurricane Fiona, with severe damage reported by Burgeo in Port aux Basques. At least 20 homes were swept into the ocean by the storm, mostly in Port aux Basques, leading to evacuation orders on the morning of Saturday September 24. The evacuation resulted in the displacement of nearly 200 people due to the storm. One death has been confirmed in the town after a house collapsed into the sea amid intense wave action and storm surge. Houses were also destroyed in Burgeo, Burnt Islands and fox roostwhere several buildings were destroyed by waves and storm surge.

Anyone who has been affected by this event or has questions about their home, vehicle or business insurance should call their insurance representative or IBC’s Consumer Information Center at 1-844-2ask-IBC.

The amount of insured damage is an estimate provided by CatIQ (www.catiq.com) under license from IBC.

About the Insurance Bureau of Canada

insurance office Canada (IBC) is the national industry association representing from Canada private home, auto and business insurers. Its member companies represent the vast majority of the P&C insurance market in Canada. For more than 50 years, IBC has worked with governments across the country to help make affordable home, car and business insurance available to all Canadians. BAC supports the vision of consumers and governments that trust, value and support the private P&C insurance industry. He advocates for key issues and helps educate consumers on how best to protect their homes, cars, businesses and properties.

For press releases and more information, visit the IBC Media Center at www.ibc.ca. Follow us on twitter @InsuranceBureau or like us on Facebook. If you have a question about home, auto or business insurance, contact IBC’s Consumer Information Center at 1-844-2ask-IBC.

SOURCE Insurance Bureau of Canada

For further information: Media Contact: Brett Weltman, Manager, Media Relations, IBC, [email protected]