Insurance and disasters

Overview

The Hazard Assistance and Resilience Program (HARP – formerly known as the Disaster Recovery Program (DRP) provides financial assistance for  loss and damage caused by uninsurable natural hazards. Local authorities need to apply to the program first, once it’s approved, residents can apply under the program. The local authority is responsible for notifying individuals and small businesses if they are approved to apply for financial assistance. The HARP helps return damaged assets to a basic and essential functional condition.

Though several types of disasters may cause uninsurable losses, financial assistance is only available to residents after their local authority has been approved for a HARP.

You must access your own insurance options and any other available sources of assistance first. If Alberta Emergency Management Agency (AEMA) determines that insurance was both adequate and available at the time of a disaster event, any costs associated with insurable loss and damage are not eligible for HARP assistance.

The AEMA considers a peril as “insurable,” if insurance was adequate and available from local insurers, and reasonably priced comparable to the level of risk. If the individual or local authority did not have insurance in place for an insurable peril, it is not eligible for HARP assistance. The HARP does not consider uninsurable components of insurable perils. It is important to talk with your insurer about these perils and to confirm you are covered.

The HARP does not cover all types of damage or loss and does not cover the full cost of replacement.

Educating yourself on what your insurance policy covers is one of the most important strategies to help your family, home or business recover from a disaster event.

Disaster insurance coverage

Questions to ask your insurance company

Being properly insured builds individual and community resilience. In order to be properly insured, you should know what your homeowner, tenant, or commercial policy covers. Consider asking your insurance provider these questions:

• What types of water damage coverage does my insurance policy cover?
• If my house experiences sewer back-up and flooding at the same time, what will my policy cover?
• Are there any incentives or discounts if I install and maintain a backflow preventer or sump pump?
• If there’s wind damage to my property, what is the difference in coverage between a basic property policy and a comprehensive policy?
• If my property experiences hail damages, what are the coverage limits for my property?

For more information, read tips for buying adequate property insurance for insurable perils in Alberta.

Adequate and available

The term “adequate” means the insurance policy provides sufficient financial protection against disaster-related damage or losses covering the replacement or repair of damaged property, structures, or assets to a functional level after a disaster.

The term “available” means the insurance for the specific natural hazard can be accessed on an annual basis at a generally affordable rate within the region. Contact your insurance provider to discuss your needs and what is covered.

The premiums you pay for insurance coverage depends on where you live and will vary by insurance product. You should be aware of the level of risk and purchase adequate insurance for your property.

As insurance products vary between providers, you should check with your insurance provider on your coverage amounts, limit maximums and exclusions.

Repairing a damaged basement

Insurance policy limits, eligibility and exclusions are important considerations for overland flooding and sewer back-up damages resulting from a disaster. At minimum, one should try to have enough insurance coverage to repair a damaged basement, as this is the most common part of property that is damaged by flood events.

Evacuations

If you had to evacuate your home, the Insurance Bureau of Canada recommends that you keep receipts for expenses such as food, clothing and lodging.

Most home and tenant insurance policies provide coverage for evacuation costs. Contact your insurance provider for more information.

Overland flooding

Overland flooding occurs when water enters buildings through windows and doors or seeps in through cracks in the basement. Overland flood insurance products are increasingly available, but are not yet considered to be adequate and available to all Albertans.

Overland flooding commonly occurs:

• when the volume of water in a river or stream exceeds the capacity of the channel
• after heavy rainfall, especially in the spring, when the ground is still frozen or already saturated from previous storms
• following rapid melting of snow and ice jams

The amount you pay for coverage will depend on where you live, and premiums will vary by insurance provider and policy. If overland flood insurance is not adequate and not available to you, you may qualify for assistance through the HARP.

Three reasons why you should prepare your home and property from flooding.