Claims pouring in for record Nova Scotia rainstorm

Adjusters are beginning to see claims pour in after thunderstorms dumped record amounts of rain on Nova Scotia Friday. 

Torrential downpours dropped over two months’ worth of rain (between 200 and 250 millimetres) in about 24 hours on Halifax, Nova Scotia’s South Shore, and central and western parts of the province, the Canadian Press reported. 

There’s also been a significant amount of overland flooding in the Bedford area, ClaimsPro told Canadian Underwriter. 

CTV News reported the flood totals “are comparable to events such as the November 2021 floods in Cape Breton, the Thanksgiving Day flood of October 2016 in Cape Breton, and Hurricane Beth in 1971.”

Hurricane Beth in 1971 produced 296 mm of rain in Nova Scotia, Public Safety Canada says. The hurricane damaged crops, sections of highways and bridges were washed out, and fresh water supplies in Dartmouth, Nova Scotia, were left contaminated for days because of extensive runoff into Lake Antigonish.

The Government of Canada website notes Hurricane Beth cost about 5.1 million in total damage (worth about $36.9 million in 2023 dollars).

How much of the 2023 flooding damage will be covered by insurance remains to be seen.

“Availability of overland flood insurance is limited in high-risk flood-prone areas, and sadly, many of the damaged properties will most likely be uninsured. This is why Canada must accelerate its important ongoing work to implement its national flood insurance program,” said Craig Stewart, vice president of climate change and federal issues for IBC.

“IBC and its members have been working with federal and provincial governments for several years to set up a program for affordable flood insurance. The implementation of the national flood insurance program is the single most important step Canada can take to better prepare for the impacts of climate change and ensure Canadians remain financially resilient to climate change.”

Although floodwaters in Nova Scotia largely receded by Sunday, the 2023 storm caused flash flooding, washed-out roads and bridges, and power outages. And this happened in some areas already affected by the recent wildfire in Halifax.

“Unfortunately, the flooding experienced in parts of Nova Scotia over the weekend has resulted in significant damage in a region that is still recovering from the destruction caused by recent wildfires,” Graham Little, interim vice president of IBC’s Atlantic region, confirmed.

The wildfires are estimated to have caused insured damage of more than $165 million, per Catastrophe Indices and Quantification Inc. (CatIQ).

While it’s premature to ask about claims counts related to the 2023 flooding, adjusters are already reporting extensive damages. Some are still having trouble accessing the damage to assess it.  

“The rain and flood-related damage in Nova Scotia is historic, with ongoing impacts to roadway accesses,” said Rannoch Harley, director of loss adjusting in Atlantic Canada for Crawford & Company. “There is significant infrastructure and commercial damages in addition to residential.” 

Infrastructure damage has made it challenging for adjusters to access some affected areas, confirmed Michael Connolly, vice president of Atlantic Canada Operations at ClaimsPro.  

“Total claim volumes are difficult to estimate at this time, as we are still in the early stages and claims are still coming in. We can confirm that communities impacted are densely populated residential areas with mixed commercial space.”

Adjusters are being brought in from other regions and desktop adjusters are also supporting claims efforts in the province, ClaimsPro reported. 

Adjusters told Canadian Underwriter they would be able to provide a clearer assessment of the storm damage as the week progresses.

Provincial officials have confirmed damage to parts of the CN rail line that run to the Port of Halifax, per Canadian Press. Meanwhile, Canada Post mail delivery is on hold across the province due to a lack of safe access by postal workers. 

Four people, including two children, went missing in Saturday in separate incidents.  

The province has declared a state of emergency, in effect until Aug. 5, unless the government terminates or extends it. 

“This is a very serious event. This flooding has been fast and furious, and we are taking strong action to ensure Nova Scotians are protected,” John Lohr, minister responsible for the Emergency Management Office, said in a release. “As the rain and flood risk continues, we need people to stay off the roads so that first responders and critical infrastructure partners can do their work to restore our roads and power and keep people safe.” 

Buildings are seen in floodwater following a major rain event in Halifax on Saturday, July 22, 2023. A long procession of intense thunderstorms have dumped record amounts of rain across a wide swath of Nova Scotia, causing flash flooding, road washouts and power outages. THE CANADIAN PRESS/Darren Calabrese