Quote:
Originally Posted by Table 5
That or create some sort of provincial overland-flood insurance, and home owners in these risky areas would have the option to buy it to mitigate their risk. You didn't buy insurance and there's a flood? Sorry charlie.
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This is what they do for earthquake here on the coast. It is normally an exclusion but you can buy the coverage for a cost. I don't know how much they would need to charge for flood coverage in a place like Calgary but Earthquake coverage is NOT cheap.
On the island it almost doubles your insurance costs at about $100-120 per $100,000 coverage, plus you have a 5-10% deductible for the coverage. With a 10% deductible people could be looking at $50,000+ easily.
That's right now and I have heard rumbling that the cost could even get higher in this region because companies are leaving the BC are to go to Washington St. where they are getting closer to double the premium (10.2 cents/$100 vs 19.8 cents/$100) for basically the same risk of earthquake.
If you opt out of earthquake coverage and an earthquake hits and your home is destroyed the government will give zero help. The only reason flood is covered by the government is because there is no option to buy that coverage for a regular homeowner. People will be lucky to get anything of use from the government compared to the damage they received by the flood. Hopefully banks are willing to help people out with cash flow to get them back on their feet.