New Alberta policies aim to mitigate future flood damage

The Alberta government announced Sunday new policies intended to help residents pay for improvements to protect their homes against future flooding and to relocate to places outside flood fringe zones, as well as stopping future development approvals on floodways and annotating property titles to ensure prospective buyers know that properties got flood relief in the past or are on floodways.

The province divides “flood hazard” areas into floodway and flood fringe zones. A flood fringe zone is “generally shallower” with water flowing more slowly than a floodway zone, where the province suggests it intends to prohibit most future development.

“Homeowners in flood fringe areas with heavily damaged homes requiring major repairs or complete reconstruction will be eligible for additional funding through the Disaster Recovery Program, on top of the disaster recovery assistance for eligible expenses,” the province states on its web site.

The July 14 announcement was made as the province recovers from record flooding that inundated areas including most of High River and the central business district of Calgary, resulted in at least 27 states of emergency and could cause up to $5 billion in total economic losses, according to BMO Capital Markets.

A.M. Best Company Inc. estimated insured losses, at $1 billion to $3.75 billion, would be significantly lower than economic losses due to the lack of overland flood coverage. A.M. Best suggested claims could come from vehicle owners with comprehensive policies and homeowners with endorsements covering water backing up into their basements.

In June the province announced $1 billion in emergency funding, intended to provide direct funding for residents who had to be evacuated, support for relief centres and rebuilding bridges and other infrastructure.

To qualify for the additional aid announced July 14, residents would have to spend the money on “approved flood mitigation” measures, such building on piers, piles or columns or installing flood proof walls or berms around a house. It could also include sealing a house to be watertight.

In a statement Sunday, the Insurance Bureau of Canada said it welcomed the government’s announcement. 

“We wholeheartedly support the Alberta Government’s continued leadership on flood mitigation,” said Bill Adams, the IBC’s vice president for the Western and Pacific region. “We believe today’s announcement will make communities more resilient and avoid future damage caused by flooding.”

The province warned that homeowners in flood fringe zones who do not implement measures designed to protect against a one-in-100-year event “will not be eligible” for reimbursement from the disaster recovery program in the event of a future flood. A one-in-100-year flood is officially known as a “design flood” and areas threatened by such a flood are defined as flood hazard areas.

“Legislative changes will be made this fall that will require municipalities to no longer approve future development in floodways,” the province stated in its July 14 press release. “Municipalities will be consulted in the coming weeks on these changes, and will account for unique circumstances some municipalities face.”

Homes and businesses in floodways, as well as those who use provincial disaster recovery funds, “will have a notation on their land title to ensure that future owners of the property are also informed.”

The province said it intends “to have funding available as quickly as possible” for residents with homes on floodways who want to relocate.

“We may help communities to establish new, serviced subdivisions to accommodate land swaps in places like High River, where 80% of the town is flooded,” the province stated. “This assistance may or may not be financial.”