What is being called the worst flooding in Alberta, Canada in decades is expected to cause damages of between C$3 billion and $5 billion.
However insurance losses are likely to be much less, since flooding is “not covered by home policies anywhere in Canada,” says Bill Adams, vice president of the Western and Pacific region for the Insurance Bureau of Canada, in a statement.
BMO Capital markets analyst Tom MacKinnon preliminarily estimates insured losses of between C$2.25 billion to $3.75 billion (US$2.14 billion to $3.57 billion).
The IBC says some damage from sewer back-up could be covered if it is bought as an add-on to a homeowners' policy. Additionally, comprehensive auto insurance covers flood.
MacKinnon estimates about half of commercial properties in Canada buy flood coverage.
But as far as homeowners' coverage, the IBC says “overland flooding” is a risk for only a small amount of the population, and would therefore be unaffordable for those who need it.
According to Reuters, Calgary, Alberta's largest city, plans to go ahead with a long-running rodeo festival in early July called “Stampede.”
“Throughout our entire history, we have never cancelled a show despite two wars and the Great Depression. 2013 will be no exception,” says Bob Thompson, president of Stampede, on its website.
The event is said to pump $320 million in Calgary's economy.
Stampede CEO Vern Kimball says millions of gallons of water have been pumped from the track, infield and buildings.
According to reports, the floods have affected Canada's oil and gas production in Calgary and a beef processing plant and fertilizer plant were shut down.
After heavy rains the Bow and Elbow rivers overflowed their banks late last week, knocking out power and causing heavy damage.
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