Floods and water damage brought on by extreme weather have become an unfortunate norm in communities across Canada. Last year, 120,000 home and business owners filed claims for insured damage following multiple catastrophic flood and water damage events across the country, according to Catastrophe Indices and Quantification Inc.
The sheer number of claims created a high demand for contractors to repair the damaged property. This higher demand for contractors, coupled with existing shortages of skilled trade labourers across the country, makes finding and choosing a contractor a difficult task.
Picking the right contractor to assist you with the recovery process after flood damage or a water damage loss is a critical step in expediting repairs to your property and getting your life and property back to normal.
Here is some important information to consider when choosing a contractor to lead the repairs to your home or business.
You are in charge of the decision-making process. Many insurers have established relationships with flood and water remediation contractors and can vouch for their reliability and the quality of their work. Many insurers also guarantee the work of the service providers they recommend. However, you are not obligated to use a company recommended by your insurer. You can use the service provider of your choice for the necessary repairs to your property. But before signing a contract, speak with your insurance adjuster to find out how much of the estimate your insurer will cover.
If you decide to go ahead with a contractor of your choice, always make sure they are reliable, experienced, in good standing with business or trade associations and have an appropriate business licence. You can also look at reviews online. After major severe weather events, some unscrupulous service providers might show up at your door unannounced. Be wary of contractors offering unrealistic incentives or asking for large upfront deposits to do the work. Do your homework and research these service providers.
Make sure that any quotes or information you get from a contractor are in writing. Do not rely on verbal quotes or guarantees.
There are skilled labour shortages in many construction trades, so there could be delays in getting work done. This is not the insurer’s fault – good contractors are busy because they do good quality work at a reasonable price. Be patient and remember that getting the work done properly will prevent future problems.
Every region has specific regulations on your rights when hiring a contractor and tips about choosing a contractor. Here are links to various “How to Choose a Contractor” information sites from across Canada: Prince Edward Island, Newfoundland and Labrador, Nova Scotia, New Brunswick, Quebec, Ontario, Manitoba, Saskatchewan, Alberta and British Columbia.
For more information on the insurance process following a severe weather event, visit IBC’s Severe Weather Insurance Help page.
Facts on flood and damage caused by water events
Statistics show an alarming increase in the severity and frequency of flood and water damage events across the country. From 1995 to 2009, insured losses from flooding and other types of water damage averaged $277 million a year. That number has increased almost fivefold over the last 15 years, with insured losses for flood and water damage now averaging about $1 billion annually.
Last year was the worst in Canadian history for insured losses from flood damage and other types of water damage. Flood and water damage events in 2024 affected a record number of people, from British Columbia to Quebec, with over $4.1 billion in insured losses.
Two floods in the Toronto area in the summer of 2024 – one in July and a second in August – resulted in close to $2 billion in insured losses.
A flood in Montreal and area caused by the remnants of Hurricane Debby in August 2024 resulted in $2.5 billion in insured damage and stands as the costliest disaster in Quebec history.
An atmospheric river that led to intense flooding along the southern British Columbia coastline in October 2024 resulted in over $110 million in insured damage.
