Water is the New Fire! At least that the case when it comes to insurance. Pete Karageorgos, the Director of Consumer and Industry Relations at The Insurance Bureau of Canada recently stated that water has surpassed fire as the leading cause of home insurance payouts. Home insurance was originally started as a way to deal with the consequences of fire but insurers now pay out more than $400 million annually for severe weather and subsequent 'flooding' damages. These weather related damages have been on the rise since 2009 and the annual amount is quadruple the payouts prior to that time, with no reason to believe that it will ever decrease. Other than the obvious concerns about our environment and the impact this is having on so many people's lives, from an insurance viewpoint the concern is how to provide proper coverage that is going to protect the consumer yet be affordable. Stay tuned for more developments on this front in future posts.
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