In our new Emerging Voices series by students, this is the first of five articles by students at the Max Bell School of Public Policy at McGill University.

Caroline Merner

June 15, 2022

Canada is the only G7 country with no national flood insurance program. Yet, flooding is the most frequent disaster in Canada, costing millions of dollars annually in damage to infrastructure, displacing thousands, destroying livelihoods, and affecting mental health.

Last fall, the B.C. floods displaced more than 15,000 people. The cost of rebuilding is estimated at $9 billion. This spring, floodwaters in Northern Manitoba reached their highest levels since 1974. Over 1,400 residents of Peguis First Nation in Manitoba were displaced. In the Northwest Territories, all 3,500 residents of Hay River were evacuated in May as floodwaters tore through their community.

One in 10 Canadian homes is at high risk of flooding. Flood risk and damage affect insurance coverage. Up to 10 percent of homes in Canada are uninsurable due to flood risks, according to the Insurance Bureau of Canada (IBC). The Canadian Climate Institute forecasts that by mid-century Canadians will experience a fivefold increase in flood damage to homes and buildings.

In 2020, the federal government launched a task force with IBC representatives. It plans to release a report on a flood insurance program at some point in the future. No details are available on how this program will be designed or implemented.

The report should recommend that Canadians be informed of the flood risks we face. A 2020 survey by Partners for Action, a climate resiliency network at the University of Waterloo, found that only 6 percent of Canadians living in flood-prone areas knew the flood risk they faced.

In Canada, real estate agents are not required to warn potential buyers who are purchasing a home or business in a flood risk area. Real estate agents and governments have little incentive to publicize information that would devalue properties by revealing data on high flood risks. This is a moral hazard. Better data is critical to purchasers..

Insurance brokers should also be required to review flood coverage options on all home insurance contracts. Only a quarter of respondents to the Partners for Action survey said their insurance companies discussed flood coverage options with them.

Homebuyers who want to look up their flood risk must often wade through incomplete government floodplain maps. Recently, Emergency Preparedness Minister Bill Blair confirmed federal government plans to develop better maps in partnership with provinces, territories, municipalities, and Indigenous organizations. These maps should enable property purchasers to avoid shocking surprises about what the future holds.

Other jurisdictions are already leading the way on better flood information. In England, individuals can type their postal code into Open Flood Risk by Postal Code, the UK Environmental Agency’s database on exposure to the risk of flooding. Similarly, a foundation in New York City has complied flood data with addresses to determine flood risk. Residents can buy flood insurance accordingly.

In addition to improving transparency on flood risks, governments in Canada must also broaden their policy focus away from disaster relief to disaster prevention. When parts of Canada are under water, the federal government will write cheques after the fact. For example, in 2021, the federal government gave the province of British Columbia $5 billion from its Disaster Financial Assistance Arrangements to help B.C.’s flood recovery.

However, more proactive action on climate adaptation is essential at all levels of government. To its credit, in its 2022 budget, the federal government allocated $3.4 billion to a Disaster Mitigation and Adaptation Fund. The Fund is designed to help communities to become more resilient in the face of disasters related to climate change.

In particular, the protection and development of our natural infrastructure are essential. Wetlands and marshes are a first line of defence from floods and must be protected. In urban areas, rain gardens and green roofs absorb excess rainwater and strengthen climate resilience. Other jurisdictions are showing the way. For example, the city of Philadelphia is investing over US$2 billion into green infrastructure, successfully relieving pressure on grey infrastructure, its sewage system.

Indigenous governments are applying traditional knowledge on flood mitigation passed on through generations. A University of Alberta study with Kashechewan First Nation demonstrated how collaboration and partnership between Indigenous knowledge holders and governments helps promote effective adaptation action. Participatory mapping is used for flood monitoring and disaster risk reduction near James Bay.

Due to climate change, so-called “one in 100-year flood events” will become increasingly frequent in Canada. Governments at all levels must better prepare for this future. The federal government must release a national flooding insurance plan, ensure that Canadians are properly informed of flood risk, and move from a focus on compensation to broader prevention and adaptation programs. Displacing thousands of Canadians every year as the waters rise is not a sustainable solution.

Caroline Merner is a Master’s student at the Max Bell School of Public Policy at McGill University and holds a Bachelor of Arts in Sustainability and International Development from Dalhousie University. Caroline co-founded Youth4Nature (formerly Climate Guides), a non-profit organization mobilizing youth for nature and climate action.