March 2021
Daniel Henstra
Flooding is a serious economic burden on Canadian households, who pay out an average of about $600 million annually in uninsured losses. The problem is especially acute for the highest-risk residential properties-the roughly 1 million homes that the Insurance Bureau of Canada estimates are located in the 100-year (1% AEP) flood zone-for which flood insurance is unavailable or unaffordable. The Government of Canada has committed to creating a low-cost national flood insurance program for these homeowners and a Task Force has been formed to explore options. This paper aims to support that effort by examining the policy context, comparing national approaches to flood insurance and drawing out lessons for Canada.