CANADA – RBC & AMA reject Alberta flood claims, while others accept

Some homeowners in flood-ravaged Alberta are banding together in an attempt to name and shame insurance companies that have rejected their claims for sewer backup damage following recent floods. 

Residents of the Elbow Park neighbourhood in Calgary say some insurance companies are approving claims while others are not — despite similar policy wordings. 

Tom Carter, exhausted after spending the last week gutting his finished basement of contents that were ruined by two metres of smelly sewer water said that it was disappointing to know that AMA Insurance rejected his claim. Carter, his wife, Julia and their two sons now must manage without their living room, spare bedroom, furnace, washer and dryer, TV and the children’s toys. The basement also needs structural and electrical repairs. 

The inconsistency in insurance assessments is making people angry and frustrated, Carter said. 

They wonder why an insurance adjuster from one company approves a claim for sewer backup in one home while another adjuster from another company says no to a house next door, blaming the sewer backup on flooding? 

Some people whose claims have been rejected have put up signs on their property chiding their insurance companies for not stepping up to help them. 

Two that have been singled out for denying claims include AMA Insurance and RBC Insurance. 

Paul Smith, Carter’s neighbour, said the insurance industry is going to suffer a public-relations black eye if it doesn’t sort the mess out. 

Smith, whose insurance claim was approved by Aviva Canada, said it is incredible that companies can treat people differently when they’ve all suffered property losses under the same circumstances.