This letter misguidedly states that home insurance does not pay for an act of God.
In fact, insurance companies do not use the term. To say an event is an act of God has no bearing on whether or not it is covered by an insurance policy. Instead, home, car and business insurance policies in Canada use the terms “perils” and “exclusions” to clearly state what is and is not covered.
Generally speaking, many insurance companies pay for damages caused by natural disasters, including damage from wind, hail and wildfire. And when the Alberta floods hit, insurers responded. More than 5,000 insurance company personnel were deployed to help with claims.
Mr. Boivin says that each taxpayer pays the bill when there is a disaster. In fact, insurers paid out more than $1.7 billion for insured damages following the Alberta flooding and more than $850 million for the July flooding in Ontario, the costliest natural disaster in Ontario history.
The insurance industry is on the ground helping in the aftermath of natural disasters. This is true for the recent floods in Alberta and every other disaster. In Alberta, we continue to help municipal and provincial officials as well as residents deal with insurance issues during the recovery process, and we will continue to do so until people get back on their feet.
Vice-President, Western and Pacific Region
Insurance Bureau of Canada