Insurance brokers are busy processing hundreds of claims worth millions of dollars as Saskatoon residents continue to clean flooded basements and fix ruined cars.
Insurance companies are shifting adjusters from across the province to flood-ravaged communities to deal with the backlog of claims for sewer back-up damage in homes, which could surpass 1,000 in Saskatoon, based on several interviews with local brokers.
Since the June 29 storm, SGI Canada has received about 650 claims for flood-damaged homes in Saskatoon and surrounding areas. The claims are estimated at $16 million.
About 1,500 damaged vehicle claims – possibly worth $8 million – from Saskatoon have been filed with SGI since the storm.
“Most of our summer storms come in July and August, so this amount of claims is very unique,” said SGI spokesperson Tony Playter.
Two Saskatoon insurance brokers said Monday clients have filed hundreds of claims related to damage sustained to homes during the storm.
With the deluge of claims related to sewer back-up, customers should expect to pay more for insurance, said Rob Clark, a broker with Cooke Insurance.
“A big loss like this (for insurance companies) usually means premiums will increase, eventually,” Clark said.
Because some homeowners have to gut entire basements after a flood, while replacing furniture, appliances and flooring at the same time, some previous claims for damage caused by sewer back-up have hit the $100,000 mark. Claims range between $1,000 and $100,000, Clark said.
Insurance covers sewerage backup but not seepage, such as water that comes through foundation cracks or surface flooding through windows and doors.
But financial help through the provincial disaster assistance program is available for homeowners who experienced seepage or surface flooding damages.
Insurance companies would often include insurance for sewer back-ups for free in home insurance packages, but now customers annually pay somewhere between $25 and $75 for protection, Clark said.
Extensive sewer back-ups caused by heavy rainfall in Saskatoon in 2005 and 2007 increased insurance premiums for protection, he said.
Cook Insurance, based on Confederation Drive, often deals with customers on the west side, where flooding is worse than other city areas, Clark said.
He estimates Cook Insurance has received a minimum of 200 claims for damaged basements.
“There’s been a lot of claims, that’s for sure,” Clark said. “And we’re just one broker. . . . I don’t envy the adjusters at all because there’s a lot of work and they’re working hard.”
Clark estimates that for every three or four phone calls about flood damage, the company gets one call about hail damage.
During April, May and June, 370 millimetres of rain fell in the Saskatoon area, nearly triple the three-month average of 134 mm of precipitation, Environment Canada says.
In the early morning of June 30, a storm dropped 80 to 100 millimetres of rain – which mixed with large hail and strong winds – on Saskatoon.
Butler and Byers Insurance received “in excess of 300 claims” since the storm, said company president Drew Byers. He said last year at this time, the company received about two dozen claims, which would be an average year.
“We had 300 to 400 claims phoned in, but how many will be successful we don’t know yet,” he said.
“It’s a significant storm season. It’ll be one of the highest (claim amounts) we’ve seen. If we had 300 or so, I’d imagine there’d be 1,500 city-wide.”
Adjusters for insurance companies have been working steadily to survey damage in cities across the province. SGI Canada has 200 adjusters from 13 communities working in cities such as Saskatoon and Yorkton.
In 2005, Saskatoon recorded 1,837 flooded basements, 807 of which were caused by sewer backup. Seepage accounted for 254 flooded basements.
On July 2, the city counted 218 flooded basements, the cause of damage split almost evenly between sewer backup and surface flooding.
Since the June storm, the city has recorded about 550 flooded basements, although the breakdown between the types of flooding was not available.
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