Markham Urges Insurance Industry to Consider City Flood Control Measures

Over the past three years, home insurance costs have increased across Canada, and in Markham, by approximately 15 to 20 percent. The City of Markham has made significant infrastructure investments to improve flood control in designated high risk areas and these efforts will continue across the City as part of its thirty year program.

Markham is challenging the insurance industry to take these changes into consideration as part of insurance rate setting for homeowner policies. At the same time, homeowners residing in the areas of the City where improvements have been completed, or are underway, are encouraged to share information about the City’s flood mitigation work with their own insurance agents as part of their policy renewal discussions.

The Insurance Bureau of Canada (IBC) has indicated that that insurance premiums have increased, due to flooding in particular, because increased claims have caused payouts to double every 10 years since the 1980s – from less than $100 million a year to over $3 billion a year in just three decades.

“This is why Markham is proud to promote our flood control program which sets a higher standard for our storm sewer systems,” said Mayor Frank Scarpitti. “Infrastructure renewal on this scale is extraordinary for municipalities and reflects Markham’s commitment to city-wide flood protection, which has always been a high priority. It is even more important today as we face the impacts of severe weather events, and the uncertainty of climate change.”

The City’s flood control program will improve storm drainage capacity and limit surface and basement flooding risk in urban areas within Markham. The 30-year program was approved by Council in February 2013 with an estimated investment of $234 – 288 million. Markham’s dedicated Stormwater Fee, introduced in 2015, provides sustainable long-term funding to the project along with the Federal Gas Tax funding.

These flood control improvements will help protect public and private property from flooding and will make critical infrastructure more resilient to extreme weather. Implementation in West Thornhill priority areas is already underway with storm system upgrades in the four improvement areas. This portion of the program will be complete later this year.

“I raised this issue with our Council because I was hearing concerns from residents about high insurance premiums related to flooding, despite the City’s efforts to reduce this risk through our infrastructure projects,” stated Regional Councillor Nirmala Armstrong. “The benefits of the City’s flood management program and the associated risk reduction should be seriously considered by insurance companies in their own risk assessments, as they set their homeowner policy rates.”

City staff have been in active discussions with the Insurance Bureau of Canada to promote the City’s program and its significant benefits in terms of flood protection, and the City has confirmed this information in a recent letter to the IBC.

“The West Thornhill area was identified as the first phase of the project after an extensive risk assessment process by the City,” said Ward 1 Councillor Valerie Burke. “This investment will protect residents from the extensive flooding on private properties and roadways, significantly improving climate change resiliency. I hope homeowners will provide information about Markham’s flood management program to their insurance agents, in an effort to mitigate rate increases.”

In addition to storm drainage improvements, Markham has also taken steps to increase the resiliency of sanitary sewer systems in Thornhill. The city-wide multi-phase Sanitary System Downspout Disconnection Program is intended to reduce the risk of basement flooding and environmental concerns caused by the direct connection of roof downspouts to the sanitary sewer system. Downspout disconnection is now complete in Thornhill and underway in Milliken and Unionville.

Beyond these improvements to municipal infrastructure performance, Markham is also supporting the work of other agencies that promote lot-level flood risk reduction measures such as the Bayview-Glen Sustainable Neighbourhood Retrofit Action Plan (SNAP). This award-winning program led by the Toronto and Region Conservation Authority includes a free home assessment program which helps home owners to identify flood proofing measures and to make their homes more efficient and sustainable.

For more information on Markham’s Flood Management Program please call 905-477-5530 or email customerservice@markham.ca

Read Mayor Frank Scarpitti's open letter to the Insurance Bureau of Canada.

For more information:

Markham Mayor Frank Scarpitti: mayorscarpitti@markham.ca or 905.475.4872

Media inquiries / interview requests: Heather Hogan, Corporate Communications, media@markham.ca or 905.415.7548