Severe flood would leave Canadian taxpayers with billions in damage

By Bill Graveland, The Canadian Press

A new report says Canada is the only G7 nation that leaves unprepared homeowners on the hook financially for losses from severe flooding.

The study, released by Swiss Re Canada, said floods have made up half of Canada's natural disasters since 1970. The international wholesale insurance provider said flooding is expected to remain a major concern as such disasters become more frequent.

Christoph Oehy, of Swiss Re Canada, said residential homes in Canada are either totally vulnerable or only marginally protected from flooding losses. While insurance can be purchased for some water-related perils in Canada, comprehensive residential flood policies were not available until recently.