Federal funding for flood insurance a 'major step forward': industry

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The federal government committed $31.7 million over three years in its latest budget toward a low-cost flood insurance program.

The insurance industry has been calling for a government-backed program to help households at increasingly high risk of damage from flooding due to extreme weather.

Flooding is Canada's greatest climate-related risk, with more than 1.5 million households considered highly exposed to flooding, said president and CEO Celyeste Power in the statement."Today's funding from the federal government will help ensure all homeowners, regardless of their risk, have access to affordable flood insurance," she said.

Experts said the hurricane highlighted gaps in home insurance, which don't normally cover damages from storm surges such as the ones caused by Fiona. The federal budget states that the unique realities of natural disasters make them difficult to insure. It proposes funding starting in 2023-24 to Public Safety Canada and the Canada Mortgage and Housing Corporation to work with the Department of Finance on the program.

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Federal funding for flood insurance a 'major step forward': industry - BNN BloombergThe federal government committed $31.7 million over three years in its latest budget toward a low-cost flood insurance program.
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