Navigating BC Flood Claims in 2024-2025: What You Need to Know

 

 BC Flood Claims in 2024-2025

British Columbia has faced unprecedented flooding challenges in 2024, making flood insurance more critical than ever for property owners across the province. As we move into 2025, significant changes to flood coverage and claim processes are reshaping how BC residents protect themselves against water damage.

The October 2024 Atmospheric River: A Wake-Up Call

In October 2024, an intense atmospheric river struck BC's coast, resulting in more than $110 million in insured damage claims. The Category 4 atmospheric river brought devastating rainfall to Metro Vancouver properties in Burnaby, Coquitlam, North Vancouver, Surrey, and West Vancouver between October 18-20. Burke Mountain in Coquitlam recorded 256 mm (10.1 in) of rainfall, while Kennedy Lake on Vancouver Island saw over 318 mm (12.5 in).

This event serves as a stark reminder that BC's flood risks are intensifying. While the damage was significant, it pales in comparison to the devastating November 2021 atmospheric river that caused an estimated $450 million in insured losses—at the time, the costliest disaster in BC history.

Remarkably, ICBC received only 80 claims for water-damaged vehicles in 2024, far lower than the 2,100 claims following the 2021 event, suggesting either improved preparedness or different flood patterns affecting vehicle exposure.

Record-Breaking Year for Canadian Weather Claims

The October flooding was part of a catastrophic year for weather-related insurance claims across Canada. For the first time in Canadian history, insured damage from severe weather events surpassed $8 billion in 2024, shattering the previous record of $6 billion from 2016. This figure represents nearly triple the total recorded in 2023.

The summer of 2024 alone saw 228,000 insurance claims—a 406% increase compared to the 20-year average. For BC property owners, this translates to increased pressure on insurance premiums and potential changes in coverage availability.

Current State of BC Flood Insurance Coverage

Despite recent flooding events, flood insurance remains challenging to obtain and often inadequate for many BC residents. About 10% of Canadian households cannot access flood insurance, forcing them to rely on government disaster assistance programs that provide limited financial protection.

The story of Pam Velt from the Nicola Valley illustrates this coverage gap perfectly. After the November 2021 floods destroyed her $414,000 home, she received only $30,000 from her overland flood insurance—despite believing she was fully covered. Her policy showed $674,050 in total property coverage, but flood protection was limited to just $30,000.

This stark reality affects thousands of BC residents who may discover their flood coverage is insufficient only after disaster strikes. Many policies include flood insurance as an optional add-on with relatively low coverage limits, creating dangerous gaps in protection.

BC's Strategic Response: The 2024 Flood Strategy

Recognizing the escalating flood risks, the BC government launched the comprehensive BC Flood Strategy in March 2024. This strategy represents the province's most extensive response to flood threats, addressing risk management holistically through improved land-use planning, enhanced flood defense infrastructure, and better utilization of natural environments to protect communities.

BC Housing has also initiated the "Mobilizing Building Adaptation and Resilience" program, designed to help homeowners protect their properties from climate change risks. These initiatives acknowledge that traditional approaches to flood management are insufficient given the increasing frequency and intensity of atmospheric rivers affecting the province.

Game-Changing Development: National Flood Insurance Program

The most significant development for BC flood victims is the forthcoming National Flood Insurance Program (NFIP). The federal government committed to launching this program in 2025, providing over 1.5 million high-risk Canadian homeowners access to affordable flood insurance.

This public-private partnership between the federal government and property and casualty insurers will make flood coverage available seamlessly through existing home insurance policies, offered by the same brokers and agents homeowners work with today. The program specifically targets households at high risk of flooding who currently lack adequate coverage options.

For BC residents, this represents a potential solution to the coverage gaps that have left many underinsured or uninsured against flood risks. The federal government is targeting an April 1, 2025 rollout for this new flood coverage program for all Canadian homeowners.

Insurance Industry Pressures and Premium Increases

The escalating costs of flood claims are driving significant changes across the insurance industry. Home and mortgage insurance rates have climbed nearly 350% over the past two decades, outpacing every other shelter-related cost. Saskatchewan and Alberta have seen the steepest increases this decade, at 106% and 90% respectively.

Even more concerning, some insurers are retreating from high-risk areas. Aviva Canada announced it would phase out its direct-to-consumer home insurance business in Alberta, while Desjardins has stopped providing new mortgages for properties in certain flood-prone areas.

Practical Steps for BC Property Owners

Given these developments, BC property owners should take immediate action:

Review Your Current Coverage: Examine your policy's flood coverage limits. Many policies include minimal flood protection that may prove inadequate during major events.

Monitor Weather Warnings: The BC River Forecast Centre issues three levels of warnings: High Streamflow Advisory, Flood Watch, and Flood Warning. Understanding these alerts can help you prepare for potential flooding.

Document Everything: In the event of flood damage, comprehensive documentation is crucial for successful claims. Photograph all damage and maintain detailed inventories of affected possessions.

Prepare for 2025 Changes: Stay informed about the National Flood Insurance Program launch and how it might affect your coverage options and costs.

Consider Professional Help: Given the complexity of flood claims and potential coverage gaps, consulting with a public adjuster experienced in flood damage can help ensure you receive fair compensation.

Looking Ahead

As BC continues to face increasing flood risks from climate change, the landscape of flood insurance and claims is rapidly evolving. The combination of the provincial flood strategy, the upcoming National Flood Insurance Program, and ongoing industry changes means 2025 will be a pivotal year for flood protection in British Columbia.

Property owners who stay informed and proactive about their flood coverage will be better positioned to weather the storms ahead—both literally and financially. The October 2024 flooding serves as a timely reminder that adequate flood protection isn't just advisable in BC—it's essential.