Somerville: Investing in flood prevention for Albertans

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By Gregory D. Somerville

In Canada, we are now experiencing, on average, 20 more days of rain a year than we had two decades ago. Major floods represent almost 20 per cent of all natural disasters ever recorded in Canada.

The recent announcement by the Alberta government of new investments into flood mitigation and prevention is welcome news for homeowners and businesses located along the Elbow River. The $926 million for flood recovery and mitigation over the next five years is a commendable move that will provide protection to a number of communities in Alberta.

The 2013 floods in Alberta were devastating, but served as a wake-up call to homeowners, government, insurers and communities of the need for real solutions to increasing severe weather events. The 2013 floods were the costliest natural disaster in Canadian history, with insurers paying out more than $1.7 billion in claims, of which $580 million was paid out to homeowners for personal property claims.

Earlier this year, Aviva Canada announced an overland water product to provide more complete protection against water related losses to residential property — the first of its kind in Canada. Aviva and other insurers launching similar water protection products understand that damage from water related events is a reality and homeowners require protection against this risk.

Ultimately, all of us will agree that it is far more preferable to altogether avoid the disruption and loss caused from flooding events. It is encouraging to see the Alberta government taking action on flood prevention. However, homeowners also have an important role to play — they can take steps to safeguard their homes and possessions from water damage. To learn about water prevention resources, homeowners can visit the Aviva Water Protection (www.avivawaterprotection.ca), the Insurance Bureau of Canada (www.ibc.ca/pe/disaster) and the Institute for Catastrophic Loss Reduction (www.iclr.org) websites.

What more can be done? We see real opportunities for all of us to work together. We would like to see the Alberta government providing eligible tax credits to homeowners who take measures to protect their property against damage from severe weather. As an example, the City of Toronto has a basement flooding protection subsidy program for homeowners who take action to reduce the risk of basement flooding on their own private property, by installing a sump pump or back water valve and drastically reduce the risk of water damage from heavy rainfall.

Since 2006, the City of Toronto has issued to homeowners over $27 million in total subsidy payments. A recent internal study by the City of Toronto on the effectiveness of this program highlights that this initiative has had a tremendous impact in flood prevention.

With the increasingly frequent and severe weather, it is essential that homeowners take the appropriate action to reduce the risk of flooding on their property. A tax credit or subsidy program, aimed at homeowners who take steps to protect their property, is beneficial to communities and helps to improve the resilience of communities as a whole to severe weather events.

We thank the Alberta government for its leadership on flood prevention and mitigation, and look forward to collaborating with the government on its overall strategy for managing flood risk. By working together, we can help Albertans lead safer lives and manage the risks that endanger their property and livelihood with peace of mind.

Gregory D. Somerville is president and chief executive officer of Aviva Canada Inc.