Hurricane Dorian Caused Over $100 Million in Insured Damage

October 4, 2019 (HALIFAX) – Hurricane Dorian hit Atlantic Canada on September 7 causing over $105 million in insured damage, according to Catastrophe Indices and Quantification Inc. (CatIQ). Seventy per cent of this amount is for damage to personal property, 25% is for damage to commercial property and the remaining amount is for damage to automobiles.

Province Insured damage*
New Brunswick $22.5 million
Newfoundland & Labrador $2.5 million
Nova Scotia $62.2 million
Prince Edward Island $17.5 million
Quebec $300,000
Grand Total: $105 million

*Initial estimates 

Hurricane Dorian wreaked havoc from the Bahamas to Atlantic Canada in early September. The weather system travelled through Atlantic Canada from September 7 to 8, 2019,and the cleanup lasted much longer. Halifax, Moncton and much of Prince Edward Island suffered a large portion of the damage, though damage reports were widespread across Atlantic Canada.

On September 7, Dorian became a post-tropical storm but maintained hurricane strength when it made landfall to the southwest of Halifax, with estimated sustained winds of 155 km/h. On the morning of September 8, the system hit the northeastern Gulf of St. Lawrence with strong southeasterly winds in Newfoundland. In the evening, the system tracked to the northeast across Newfoundland’s Great Northern Peninsula, with wind gusts ranging from 90 to 157 km/h.

Due to rainwater-saturated ground and trees being in full leaf, many large trees were uprooted across Atlantic Canada, and the region experienced numerous power outages. Heavy rainfall also caused road washouts and flooding of homes and businesses. The Magdalen Islands were severely affected as homes, cottages, and boats were damaged, and trees were uprooted; in several cases, and some cottages were blown off their foundations.

“Hurricane Dorian is another example of how devastating Mother Nature can be” said Amanda Dean, Vice-President, Atlantic, Insurance Bureau of Canada (IBC). “Severe, unpredictable weather like this is becoming more frequent, resulting in higher costs to homeowners, insurers and governments. Last year, insured damage from severe weather across Canada exceeded $2 billion, the fourth-highest amount of annual losses on record. That alarming trend has continued in 2019, with over $1 billion in insured losses recorded already this year.”

As the financial cost of the changing climate has been increasing, IBC has been working closely with all levels of government to increase investments to mitigate the future impacts of extreme weather and build resilience to its damaging effects. IBC is advocating for improved building codes, better land-use planning, incentives to shift the development of homes and businesses away from areas at highest risk of flooding, and investment in new infrastructure to protect communities from floods and fires.

The financial costs of severe weather are widespread adversely impacting insurers, policyholders and taxpayers, This is why all stakeholders need to come together to reduce the financial strain caused by floods and other severe weather events. For every dollar paid out in insurance claims for damaged homes, vehicles and businesses, Canadian governments and their taxpayers pay much more to recover the public infrastructure damaged by severe weather.

The amount of insured damage is an estimate provided by CatIQ (www.catiq.com) under licence to IBC.


About Insurance Bureau of Canada

Insurance Bureau of Canada (IBC) is the national industry association representing Canada’s private home, auto and business insurers. Its member companies make up 90% of the property and casualty (P&C) insurance market in Canada. For more than 50 years, IBC has worked with governments across the country to help make affordable home, auto and business insurance available for all Canadians. IBC supports the vision of consumers and governments trusting, valuing and supporting the private P&C insurance industry. It champions key issues and helps educate consumers on how best to protect their homes, cars, businesses and properties.

P&C insurance touches the lives of nearly every Canadian and plays a critical role in keeping businesses safe and the Canadian economy strong. It employs more than 128,000 Canadians, pays $9.4 billion in taxes and has a total premium base of $59.6 billion.

For media releases and more information, visit IBC’s Media Centre at www.ibc.ca. If you have a question about home, auto or business insurance, contact IBC’s Consumer Information Centre at 1‑844‑2ask-IBC.

“I discovered water damage in my home. Will insurance cover me?”

The short answer, unfortunately, is “that depends.” Here are the variables that come into play when homeowners seek water damage protection.

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Q: My washing machine has been leaking for years and we only just learned of the leak and the resulting damage because of staining on our basement ceiling below. Will my home insurance cover this?
–Alison

A: While water damage is almost always the same—destroyed floors, mouldy drywall, and potentially destroyed electrical and heating systems—the cause can significantly change whether or not the damage is covered by your insurance.

Turns out, how water enters your home dictates whether or not the damage will be paid by you, out of pocket, or covered by your home insurance policy.

This should cause all homeowners concern. Why? Because flooding happens so frequently. Setting aside the incidental floods, such as pipes breaking or washing machines leaking, natural floods, such as those caused by snowmelt runoff or raised river banks, occur fives times as often as wildfires. In fact, natural overland floods are the second most frequent natural disaster in Canada, according to Dan Sandink, director of research at the Institute of Catastrophic Loss Reduction (ICLR).

Sadly, residents in Ontario, Quebec and New Brunswick are now intimately aware of how devastating a flood can be to both property as well as to someone’s financial well-being. In April 2019, CTV Newscalculated that 6,425 homes had been flooded in Quebec alone. Another 3,508 were surrounded by water. Another 21 Ottawa homes were voluntarily evacuated, while 80 roads in New Brunswick had been closed.

According to Canadian Forces, 2,000 troops were deployed to Eastern Canada to help with flood efforts, and more than one million sandbags were used in the nation’s capital, Ottawa.

This doesn’t bode well for homeowners across Canada, who will eventually feel the burden of rising premiums to cover insured losses. This is on top of the $1.9 billion in insured losses that Canadians already sustained in 2018—the fourth-highest amount on record, according to the Insurance Bureau of Canada.

What’s worse is knowing that a standard homeowners’ policy (or tenant insurance) doesn’t provide coverage in the event of flood damage. While government relief may be available for uninsurable damage, that relief is often slow to materialize and insufficient to cover the cost of repair, leaving families to pick up the pieces.

You may be able to purchase flood insurance—known as overland coverage—depending on whether or not you live in a flood-prone zone. And even if it is available in your area, however, you must also purchase sewer back-up coverage, which is typically far more available.

But what about floods that are not caused by natural disasters? What about the floods caused by burst pipes or cracked foundations or, in your case, Alison, a leaky washing machine?

In general, standard (also known as comprehensive) homeowners’ insurance may help cover damage caused by leaking plumbing if the leak is sudden and accidental, such as if a washing machine supply hose suddenly breaks or a pipe bursts. Keep in mind, this sudden, accidental flood cannot occur when the home is vacant for more than 48 hours (for some insurance providers this drops to 24 hours), which is why it’s important to have a trusted friend or family member check on your home every day or so to make sure everything is alright while you are away on vacation.

But what about slow leaks? Turns out this is where coverage gets grey and fuzzy. While most policies won’t cover damage resulting from poor maintenance—for instance, damage due to a leaking toilet you failed to repair— that doesn’t mean that all slow leaks are denied coverage.

What follows will help you understand when you’re covered, versus what’s your responsibility.

READ MORE HERE: 

No Underinsured Coverage For Ontario Truck Driver

Article by Brian Sunohara

In Kahlon v. ACE INA Insurance, 2019 ONCA 774, the Ontario Court of Appeal held that a commercial truck driver was not entitled to underinsured coverage from either his personal automobile insurer or a fleet insurer.

Overview

Kahlon was involved in a serious accident in Florida. He had been operating a truck. He stepped out of the truck to see what was causing a traffic delay and was struck by another vehicle. The at-fault driver only had $20,000 in liability insurance.

Kahlon was insured under a personal automobile policy in Ontario with Allstate. The company for which Kahlon was operating the truck had fleet insurance in Ontario with ACE INA.

On a motion, Justice Whitten determined that Allstate was obliged to respond for underinsured coverage and that ACE INA was not required to respond. The Court of Appeal held that neither Allstate, nor ACE INA, was responsible for underinsured coverage.

Purpose of Underinsured Coverage

The purpose of underinsured coverage is to protect an insured who may be involved in an accident with a driver who has low liability insurance limits. The insured’s own insurer must make up the shortfall in damages, up to the insured’s policy limits.

Although underinsured coverage is optional, most personal automobile policies in Ontario have such coverage.

However, expert evidence showed that commercial fleet insurers in Ontario have not offered underinsured coverage in respect of heavy commercial vehicles for around 15 years. They stopped doing so because of the increased risk posed by truck fleets travelling into the United States. Many drivers in the United States have very low liability insurance limits.

OPCF 44R Endorsement

In Ontario, the OPCF 44R endorsement governs underinsured coverage.

Section 22 of the OPCF 44R endorsement states: “Except as otherwise provided in this change form, all limits, terms, conditions, provisions, definitions and exclusions of the policy shall have full force and effect”.

Therefore, the conditions in the Ontario Automobile Policy (OAP 1) are applicable to underinsured coverage.

Section 2.2.3 of the OAP 1 provides that, if an insured is driving a vehicle not described on the policy, that vehicle must not have a gross vehicle weight rating of more than 4,500 kilograms.

In other words, the OAP 1 excludes coverage for heavy commercial vehicles.

Court of Appeal’s Decision

Since Kahlon was operating a heavy commercial vehicle, the Court of Appeal said that he was not entitled to underinsured coverage from Allstate.

Further, underinsured coverage was not available under ACE INA’s fleet policy because that policy contained an endorsement which restricted such coverage.

Specifically, the endorsement provided that underinsured coverage was only available when the driver was operating a private passenger vehicle or light commercial vehicle, not a heavy commercial vehicle.

The endorsement was held to be applicable even though it was not in an approved form.

Conclusion

No underinsured coverage whatsoever was available to the plaintiff. Since the plaintiff sustained serious injuries, there will likely be a shortfall in his recovery of damages, unless the at-fault driver has sufficient assets to personally satisfy a judgment.

The Court of Appeal found this to be an unfortunate, but necessary, result, noting that “this outcome follows from the decision of the provincial government many years ago not to make underinsurance coverage mandatory”.

The Court of Appeal concluded: “courts have no authority to simply override contractual language in order to force the provision of coverage where none is contemplated by the existing language of the insurance policy and the endorsement, just because they might consider it good public policy to do so. This is the business of the provincial government, not the courts”.

Rogers Partners LLP is an experienced civil litigation firm in Toronto, Ontario. The firm represents insurers and self-insured companies in numerous areas, including motor vehicle negligence, occupiers’ liability, product liability, professional negligence, construction claims, statutory accident benefits, disability benefits, municipal liability, medical negligence, sexual abuse, and insurance coverage disputes.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Source: Mondaq

Navacord’s Banner Year Continues With the Addition of Hoffmann Kool Insurance & Life Line Insurance

Navacord Corp., a leading insurance and risk management brokerage, is pleased to announce their strategic expansion in Saskatchewan with the addition of Hoffmann Kool Insurance and Life Line Insurance, effective October 1, 2019.

Both Hoffmann Kool and Life Line have proudly served the business, personal and life insurance needs of Saskatchewan communities for over thirty years. Located in Saskatoon, both offices will remain under the management of their current leadership teams.

“With eleven partnerships announced so far in 2019, we have tripled our business in five short years,” said T. Marshall Sadd, Executive Chairman of Navacord. “We are pleased at how our business model resonates with brokers and consider 2019 to be a banner year.”

“We are tremendously excited about the opportunity to join Navacord,” said Darryn Knibbs, President and CEO of Hoffmann Kool and Life Line Insurance. “Our desire was to remain an independent business but have the benefits of being part of a bigger, national broker. This is exactly what we are achieving by joining Navacord.”

This marks the second Broker Partner announcement in one week, following the addition of Vancouver Island-based Waypoint Insurance Services.

“Navacord is excited to be expanding in Saskatchewan as we focus on building the business in the province,” said Shawn DeSantis, President and CEO of Navacord. “Hoffman Kool and Life Line strategically expand our geographic footprint and increase our expertise in the province. We look forward to working with the Hoffman Kool and Life Line teams.”

About Hoffmann Kool Insurance

Hoffmann Kool Insurance has been providing a broad range of Personal and Commercial Insurance Products and Motor Vehicle Licensing for over 30 years. They pride themselves on being Saskatoon’s locally owned insurance experts who work hard to take care of their clients. Their team strives to deliver an exceptional client experience through their knowledge, technical expertise and friendliness. They know insurance can be a bit confusing which is why they help to make things clear.

About Life Line Insurance Brokers

Life Line Insurance Brokers has been providing their clients a wide selection of products and services in Saskatoon and throughout Saskatchewan for over 40 years. The Life Line team work hard to ensure clients receive affordable, understandable insurance options from advisors who have earned their trust to help them at every stage of their life.

About Navacord

Headquartered in Toronto, Navacord’s group of companies include Broker Partners across Canada and Specialty Managing General Agents. Offering risk management and consulting solutions, Navacord is committed to the success of their clients and delivering expert advice in an increasingly complex world. Broker Partners deliver local, personalized service to their clients while being supported by the additional expertise, resources and efficiencies of a national brokerage. Navacord is the preferred partner for entrepreneurial insurance brokerages seeking to collaborate and grow while maintaining their unique identity and culture.

Chubb Charity Challenge Approaches the $17 Million Mark Over 20 Years of Charitable Giving

Annual Golf Tournament Series Raises Nearly $1 Million for Second Consecutive Year, with Two Charities Receiving Top Prize of $50,000

WHITEHOUSE STATION, N.J., Oct. 3, 2019 /CNW/ — Last week, forty-five teams from across North America – the winners of regional golf events held throughout the year – competed in the 20th annual Chubb Charity Challenge tournament finals, held September 22-25 at The American Club in Kohler, WI. This year, two teams tied for first place and were crowned champions of the annual event: Lloyd Sadd Insurance Brokers (Lloyd Sadd), playing on behalf of Little Warriors; and IMA Select, playing on behalf of Hillcrest Ministries of MidAmerica, Inc. Each of the winning teams will present a $50,000 check to its chosen charity.

In total, more than 300 teams participated in the 2019 Chubb Charity Challenge, raising nearly $1 million this year for charities across the U.S. and Canada. Every team that participates in the tournament finals wins money for its charity. The amount each team wins depends on where they finish among the field upon conclusion of the two-day finals tournament.

“The Chubb Charity Challenge is an important annual tradition that underscores Chubb’s commitment to giving back to the communities where we live, work and serve,” said Chris Maleno, Division President, Chubb North America Field Operations. “As we celebrate its 20th anniversary, Chubb recognizes and thanks our network of brokers and agents that has participated in the Chubb Charity Challenge over the last two decades and contributed to its success – raising nearly $17 million to-date for worthy causes throughout North America.”

The Chubb Charity Challenge invites agents, brokers and clients to golf in regional tournaments hosted by local Chubb branches. Competing on behalf of their selected charities, the winning team from each regional tournament advances to the national tournament.

According to T. Marshall Sadd, executive chairman of Lloyd Sadd, winner of the Calgary regional, “Little Warriors, based in Edmonton, AB, is a charitable organization committed to the awareness, prevention and treatment of child sexual abuse. It is incredibly rewarding for our company to win $50,000 for a charity that is doing so much good within our community, and we are so appreciative of Chubb for this opportunity.”

The other winning team – IMA Select, winner of the Kansas City regional – played for Hillcrest Ministries of MidAmerica, Inc., which provides transitional housing and other programs that combat homelessness.

“This donation will help make a tremendous difference in Hillcrest Ministries’ ability to serve families in need,” said Jason Bottorf, Kansas market leader for IMA Select. “Words cannot describe how proud and honored we are to be able to deliver a check for $50,000 to this worthy cause. We are so thankful to Chubb for hosting this event and creating this platform for us to give back to our community.”

To find out more information about the Chubb Charity Challenge, including highlights of participating teams and the charities that have benefitted, visit chubb.com/CharityChallenge.

About Chubb
Chubb is the world’s largest publicly traded property and casualty insurance company. With operations in 54 countries and territories, Chubb provides commercial and personal property and casualty insurance, personal accident and supplemental health insurance, reinsurance and life insurance to a diverse group of clients. As an underwriting company, we assess, assume and manage risk with insight and discipline. We service and pay our claims fairly and promptly. The company is also defined by its extensive product and service offerings, broad distribution capabilities, exceptional financial strength and local operations globally. Parent company Chubb Limited is listed on the New York Stock Exchange (NYSE: CB) and is a component of the S&P 500 index. Chubb maintains executive offices in Zurich, New York, London, Paris and other locations, and employs more than 30,000 people worldwide. Additional information can be found at: chubb.com.

Chubb Insurance Company of Canada has offices in Toronto, Calgary, Montreal and Vancouver and provides its products and services through licensed insurance brokers across Canada. For additional information, visit: chubb.com/ca.

SOURCE Chubb

Related Links

https://www.chubb.com/us-en

Navacord’s local touch expands by 18 offices in B.C. with Waypoint Insurance, the largest, independently owned brokerage on Vancouver Island

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