A major earthquake in Western Canada could prove to be much more costly than the flooding in Calgary in 2013. It is the country's most prevalent natural disaster according to a new study by IBC.
Frequency and severity of natural disasters is on the rise in Alberta. Canadian insurers are still reeling from the flooding that happened in 2013 in Southern Alberta.
The rain and flooding in Alberta cost insurers about $2-billion (U.S.) according to a recent report by reinsurance company Swiss Re. That was the largest insured loss recorded in Canada.
Earthquakes are a fatal risk and are projected to have an even greater impact on our economy than the flooding.
With all of the oil fracking that takes place in Alberta, Albertans have a high risk of seeing such an event in the near future. Seismic activity in such regions as Oklahoma, Texas, Arkansas, Ohio, and other oil rich states has been directly correlated to fracking and putting fracking waste water in underground disposal wells.
Earthquakes have increased by 40 times between 2008-2013 in these areas. It is only a matter of time before we start seeing this seismic activity happening in Alberta.
To better understand how fracking works, see the video below: "Fracking Explained"
Currently, only about 31% of insurance customers have Earthquake Insurance. The majority of those being commercial clients insuring commercial property. There have been talks about making Earthquake Insurance mandatory for all homeowners to reduce the risk for all Albertans.
Protect your family and talk to your broker about this important coverage today.