Although estimations for property damage from Hurricane Fiona are just emerging, Maritime residents are looking ahead to determine how they will afford to pay for their losses, and many insurance companies do not cover storm surges.
DBRS Morningstar, a financial services company, said that Hurricane Fiona would cost an estimated $300 million to $700 million due to insured losses.
“This would be significant but not large enough to affect the financial strength of the large, nationally diversified insurance groups which are the top participants in the property insurance market in Atlantic Canada,” DBRS Morningstar said in a Sept. 27 report.
Amanda Dean, vice president of the Atlantic region for the Insurance Bureau of Canada, said home insurance usually only covers certain types of water damage and typically requires an add-on policy for floods. And even with add-on policies, they do not usually cover storm surges because it is difficult to measure the risk with sea levels rising and coastlines eroding, she said….