CALGARY- Some major insurance companies have reversed their decisions to not cover some homes that were damaged by the devastating floods.
Residents in areas like Rideau and Elbow Park complained that they were denied coverage by AMA and RBC, despite not being hit by overland flooding.
One of the affected couples is Joanne and Bliss Aime, who lost everything in their basement when the sewer backed up. Even though the water didn’t flow in through the windows, RBC Insurance refused to cover the damage.
“It didn’t feel like it was the right thing, it didn’t feel like it was the right decision,” says Joanne Aime, who has neighbours in Elbow Park who were covered. “This…in our mind, was a very unique situation.”
Fortunately, the company changed its stance on Friday, and delivered a cheque to the Aimes. She says she feels that public pressure is behind the change of heart.
“Shortly after the media press started getting out, we did get a call from RBC saying they were going to send representatives from Toronto, who met us later that day, and things have been very positive ever since.
“It looks like there’s a movement to reconsider, which is fantastic.”
Tom Carter, another Elbow Park resident, faced a similar situation at the hands of AMA Insurance, which has since decided to reimburse him.
“What they’re saying is, there’s no indication that flooding actually reached or impacted our home,” he explains. “Therefore, we do have sewer back up and that is a coverable claim.”
In a statement to Global News, RBC Insurance said it is covering all sewer backup claims up to the limit of the policy, due to the special circumstances.
AMA says any damage caused by sewer backup will be covered and the company will err on the side of the homeowner in cases where the exact cause isn’t clear.
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