Originally published in Policy Options.
Climate change is resulting in heavier rainfall and increased flooding in many parts of the world.
In Canada, roughly one in 10 households face the double whammy of living in areas at high risk of a deluge, while getting insured in these areas is nearly impossible. Insurance companies, deterred by the high cost of payouts for frequent and severe flooding, seldom offer flood coverage in these areas and, when they do, the premiums are sky-high.
Can the Canadian government protect homeowners who don’t have access to, or can’t afford, insurance from rising rates and rising waters?
The federal government announced in last year’s budget that it would create a low-cost flood insurance program. It would aim to ensure that families in high-risk areas could obtain insurance at affordable rates, thus offering a…
