Last fall’s historic floods in British Columbia could cost governments and insurers more than $9 billion.
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This is revealed by an analysis of the “Globe and Mail” unveiled on Saturday, which estimated the costs of reimbursements from insurers, compensation from governments and the reconstruction of infrastructure damaged by the flood waters.
According to the daily, this sum could put to the test the existing cost-sharing agreements between the various levels of government to cover disasters of this magnitude.
Private insurers expect to pay $515 million in claims, and the province will likely pay a similar amount to homeowners who don’t have flood insurance. The provincial government must also rebuild vital road links in dangerous terrain.
The reconstruction operation would be the most staggering in the country’s history for this kind of disaster. Several experts ask for a preparation plan to avoid such high costs.
“Such outcomes are not inevitable – they are the result of choices that put people at risk. There are practical measures that can be implemented to help mitigate the most damaging effects of extreme weather events,” wrote Scott Vaughan, Chair of the Council of Canadian Academies Expert Panel, in the introduction to the report. January, “Building a Resilient Canada”.
According to the Department of Public Safety’s Canadian Disaster Database, the costliest natural disaster in Canadian history so far remains the 1998 ice storm, which cost governments $4.6 billion. and insurers. It is followed by the Fort McMurray fire in 2016, which cost just over $4 billion.