Catastrophe Response Unit helping insurance companies following flood

The flooded Taiga Nova Eco-Industrial Park alongside the Athabasca River at the north end of Fort McMurray is shown on Tuesday, April 28, 2020. Officials in Fort McMurray are keeping a close eye on river levels after a 25-kilometre ice jam caused major flooding and forced about 12,000 people from their homes. THE CANADIAN PRESS/Greg Halinda

A group of about 20 insurance adjusters with Catastrophe Response Unit (CRU) are in Fort McMurray to help agencies following the flood.

CRU offers support services to about 15 different insurance agencies throughout Canada.

It assists with inspections, quantifying damages, and full adjustments on automotive, commercial and residential policies.

The agency is here helping both carriers and clients sort through claims.

Executive Vice President Skip McHardy said most of the damage has been done to basements, which could cost homeowners $25,000 before putting a value to contents if there is one foot of water.

“The overland flooding creates sewer backup or creates sump pump failure, so the water is either filtering through the ground and coming up through a sump pump, or the entire sewer system for that block or that neighbourhood is backing up into the basement.”

He said basements are usually finished, so the work of pulling everything out and then drying it can be extensive and never goes as fast as people hope for.

He said it’s not an easy type of damage to deal with, but mitigation started early.

McHardy said businesses were also hit hard, with some having water lines of four to five feet.

He also noted that most insurance companies in Canada now offer coverage for overland flooding, but many don’t opt for it because it can be expensive if your home is in the flood-prone area.

Celeste Power, vice-president for Western Canada with the Insurance Bureau of Canada said 13 insurers offer overland flood coverage in Alberta, but it’s an add-on to policies and about half of Albertans have opted in.

Power said since a flood plain was affected during the River Breakup Flood, that explains why many people are without insurance.

“Flood insurance there is usually much more limited or restricted because the likelihood of flood is so much higher,” she said. “The policy would be unaffordable.”

Mayor Don Scott estimated the damage at $100 million.

The Alberta government has announced $147 million in disaster relief for communities affected by flooding during spring ice breakup.

*With files from The Canadian Press