January 6, 2010 by Canadian Underwriter
Homeowners in Fredericton, New Brunswick will likely see an increase in their insurances rates as a result of the increasing number of flood claims reported, according to the CBC.
“Recently, most insurance companies have seen an increase in the kind of claims they’re getting,” Bill Adams, vice president of the Insurance Bureau of Canada in the Atlantic Region, is reported as saying to CBC.ca.
“Traditionally, a typical homeowner’s policy used to be a fire policy, but more and more water claims are being seen by a lot of insurers.”
More that 1,167 mm of precipitation fell in Fredericton in 2009, according to Environment Canada statistics.
In 2008, there was slightly more than 1,159 mm of precipitation. Records show 907.4 mm of precipitation fell in 2007.
The average annual precipitation in Fredericton is 1,124 mm, based on data collected between 1971 and 2000.
The increase in water claims is making it more expensive to insure houses, Adams told the CBC.
Homeowners who have filed claims for water damage could see an increase in premiums, Ronald Godin, consumer advocate for insurance in New Brunswick, told the CBC. He added, however, that there is adequate competition amongst insurance companies, and so the increases should not be severe.