'We thought we were covered': B.C. flood victim says insurance paid $30K after home destroyed
A survivor of British Columbia's catastrophic floods last year is warning others to check their insurance policies after she said she received a payout of only $30,000 when her home, assessed at $414,000, was destroyed.
Pam Velt, whose house collapsed into the Nicola River last November, said she and her husband, Paulus, believed they were fully insured.
"We thought we were covered," she said. "I just finally have kind of realized that we have no home left. And everything we've worked our butts off for is gone."
The Velts had just begun their retirement on the rural property along Highway 8 west of Merritt, B.C., and were planning to leave it to their son, who also lived with them. They are now billeting in a 12-foot trailer with support from the Canadian Red Cross.
Despite paying extra for overland flood insurance, which covers damage from heavy rainfall and overflowing rivers, Velt said they were shocked at the payout amount and are disputing it.
A copy of the Velts' insurance coverage shows their main policy includes a total $674,050 in property coverage, including $313,500 for their home, and other coverage for additional structures, personal property and loss of use. Under additional and optional coverage, the overland flood insurance amount is listed as $30,000.
Their insurer, Wawanesa Mutual Insurance Company, said in the interests of its policyholders' privacy it could not comment on the specifics of a claim nor on details of a dispute.
There are several options open to policyholders who disagree with the company's decisions, including contacting the General Insurance OmbudService and the Financial Consumer Agency of Canada, it said.
Before 2015, the only financial compensation available for overland flood damage to homes in Canada was through disaster financial assistance programs provided by the federal and provincial governments, Wawanesa spokesman Brad Hartle said. The company is one of 30 firms across Canada that now offer some level of flood coverage.
"Some homes face a greater risk of overland flood than others and that is reflected in the coverage available, and the price charged," he said.
Rob de Pruis, national director of consumer and industry relations at the Insurance Bureau of Canada, said insurance costs related to extreme weather have ballooned in the past decade. The national average stands at $2.1 billion annually, up from $422 million between 1983 and 2008.
"The insurance industry has seen an increase in frequency and severity of severe weather events, and we've been sounding the alarm for years," he said.
November's floods were the costliest disaster in B.C. history, with insured costs estimated at $515 million as of January. That figure is likely to rise and does not include uninsured costs, the bureau says.
The best estimate based on anecdotal evidence is that about 30 per cent of properties in high-impact areas had some level of overland flood coverage, de Pruis said, but there is no official count.
About 800,000 properties in high-risk zones across Canada remain ineligible for coverage, he said.
The Insurance Bureau of Canada is working with the federal government to develop a flood map and flood plan to increase the eligibility for coverage for those currently uninsured, he said.
For now, it's up to individual companies to determine how much coverage they will offer in risky areas like floodplains and along rivers.
Pricing is difficult, because some risks are so high that the appropriate price of coverage would be unaffordable, de Pruis said.
"As the risk starts increasing, the cost goes up and the coverage limits may get reduced," he said.
In a news release this week, the B.C. government urged British Columbians to prepare for disasters by buying home insurance.
However, it notes that flood insurance can be hard to come by.
"While residential flood insurance can be limited in areas of higher risk, insurance representatives can help determine if residential flood insurance or sewer-backup coverage is available for your property," the government says.
Months after the flood, Velt said she and her husband are still making mortgage payments on the house that is gone and they also pay for insurance to protect themselves from liability if someone injures themselves on the property.
The last time Velt was in the house, she was trying to break open the door to rescue her pets. She's been wearing donated gumboots and hoodies, but with the seasons changing, Velt said she realizes she needs a whole new summer wardrobe.
"When you walk away with what's on your back, you have nothing. It's coming into summer now, I tried to explain to Red Cross, we have no shorts," she said.
The B.C. government has said flood victims are eligible for up to $300,000 in disaster financial assistance and Velt said she is hoping that will come through soon.
For now, she said she's grateful for the support of friends and family.
"We're in limbo."
This report by The Canadian Press was first published April 15, 2022.
CTVNews.ca Top Stories
Grandparents killed in wrong-way crash on Hwy. 401 identified
A 60-year-old man and a 55-year-old woman killed in a wrong-way crash on Highway 401 earlier this week have been identified by the Consulate General of India in Toronto.
Police arrest 3 Indian nationals in killing of B.C. Sikh activist Hardeep Singh Nijjar
Three people have been arrested and charged in the killing of B.C. Sikh activist Hardeep Singh Nijjar – as authorities continue investigating potential connections to the Indian government.
Suter scores late goal, clinches series for Canucks
Pius Suter scored with 1:39 left and the Vancouver Canucks advanced to the second round of the NHL playoffs with a 1-0 victory over the Nashville Predators on Friday night in Game 6.
TD worst-case scenario more likely after drug money laundering allegations: analyst
TD Bank Group could be hit with more severe penalties than previously expected, says a banking analyst after a report that the investigation it faces in the U.S. is tied to laundering illicit fentanyl profits.
Quebec man who threatened Trudeau, Legault online sentenced to 20 months in jail
A Quebec man who pleaded guilty to threatening Prime Minister Justin Trudeau and Premier François Legault has been sentenced to 20 months in jail.
Human remains found in rural Sask. possibly a decade old, RCMP say
RCMP say human remains found in a rural area in central Saskatchewan may have been there for a decade or more.
Britney Spears 'home and safe' after paramedics responded to an incident at the Chateau Marmont, source tells CNN
A source close to singer Britney Spears tells CNN that the pop star is 'home and safe' after she had a 'major fight' with her boyfriend on Wednesday night at the Chateau Marmont in West Hollywood.
Canadian doctor concerned new weight-loss drug Wegovy may be used inappropriately
As Wegovy becomes available to Canadians starting Monday, a medical expert is cautioning patients wanting to use the drug to lose weight that no medication is a ''magic bullet,' and the new medication is meant particularly for people who meet certain criteria related to obesity and weight.
Drew Carey is never quitting 'The Price Is Right'
Drew Carey took over as host of 'The Price Is Right' and hopes he’s there for life. 'I'm not going anywhere,' he told 'Entertainment Tonight' of the job he took over from longtime host Bob Barker in 2007.