SASKATOON – As the slope failure in Nutana continues to worsen every day, city council approved a report Wednesday night to investigate and monitor the problem over the next 90 days to come up with solutions.
When homeowners bought on the land overlooking the riverbank, they purchased their properties at a premium.
“Ultimately the homeowners would love to stay there if their homes are secure enough, if a study determines they are. But if not that property value has diminished to almost nothing because nobody else can purchase the home or buy the lot if the home needs to be torn down, really there wouldn’t be a demand for it at all,” said Jason Yochim, with the Saskatoon Region Association of Realtors.
Not only could the value of homes take a hit but insurance companies’ hands are tied.
“It’s a terrible thing to have to tell somebody, look I’m sorry there isn’t any insurance coverage for you, it’s tough for us to have to tell people that unfortunately there’s always exclusions in every insurance policy and landslide is one of them,” said Bill Schwandt, with Hoffmann Kool Insurance.
It’s a risk homeowners on slopes and riverbanks take. Three homes slid into Edmonton’s river valley in 1999, costing homeowners almost $2 million, most of that not covered by insurance.
Bill Schwandt says it’s important for homeowners in this case to look into disaster relief.
There is a chance the homes will one day be back to what they’re worth.
“Whatever remedy the city comes up with, if that solution seems like it’s a long term stable solution then the confidence level of the purchaser should be there and those home owners should see those values of their home,” said Yochim.
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