Insurance pro weighs in on flood zone

“It’s an unfortunate reality, is that some of these homes in Prince Albert here have been built in these flood zone areas,” said Keith Izsak, a manager at Prince Albert’s Affinity Insurance.

He was an underwriter in the industry for 12 years – a role that includes reviewing insurance applications and determining whether to accept the risk and on what terms.

People in those roles “have to determine what effect really is gonna be on that risk. And at times they’ll look at the bylaws that are set up in that community,” Izsak said.

When it comes to insurance right now, he said homeowner policies don’t include coverage for flooding.

“If the banks of the river open up and spill into your premises, right now there’s no coverage,” he said.

He could only speak in general terms because the OCP is still in the works, and zoning and subdivision bylaws would follow that. The OCP is expected to pass this summer.

Iszak said it’s important to understand what’s happening in the area and why.

“I guarantee you within the next few months they’ll be doing their underwriting job and their diligence in order to find out what’s going to take place.”

Referring to the City, he said this will involve looking into codes governing rebuilding.

“It’s really inherently up to the cities to determine whether or not the bylaw will allow residents to return to those areas and rebuild in the same manner that they have. And that will obviously dictate the kind of insurance coverage you have,” Izsak said.

“Then it’s up to the underwriters to determine whether or not they want to accept or reject those risks. Or even charge more premium for them if they end up taking them,” Izsak said.

Those risks could be great, depending on which direction the City goes.

For example, in flood zones where rebuilds are not allowed or the rules for rebuilds change, insurance policy coverage for fires may be restricted or changed “so that you cannot get what they call a ‘guaranteed replacement cost coverage’ on it,” Izsak said.

Also, a City sometimes won’t allow rebuilds based on other concerns that aren’t even flood related.

With that said, Izsak assures the public that flood zones and maps are nothing new in the industry.

“Most insurance companies already have copies of those flood zones, and have decided what they want to charge for those risks.”

claskowski@jpbg.ca

On Twitter: @chelsealaskowsk

by Chelsea Laskowski

Insurance pro weighs in on flood zone

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