Canadian Lawyer

w w w . C A N A D I A N L a w y e r m a g . c o m O c t O b e r 2 0 1 4 21 rEaL EstatE Stormy outlook Recent extreme weather events have put the spotlight on a variety of legislative gaps facing insurers, landlords, and tenants. by Marg. bruineMan T he weather and its increased severity and unpredictability has become more than a news story. Extreme weather and natural disasters are tak- ing an increased toll on property and life. Cleanup for damage resulting from the 2013 floods that essentially crippled Calgary's core — also flooding many nearby communities — is estimated to be in the $6-billion range. Quebec, Saskatchewan, and Manitoba were also hit with major floods last year. Toronto has recorded three once-in-a-century storms over a 12-year period. Already this year Burlington and Windsor, Ont., have experienced major flooding. In July, Hurricane Arthur, while downgraded to a tropical storm, resulted in rains cutting power to one-third of Nova Scotia households and 65 per cent of New Brunswick. Ice storms, tornadoes, and coastal hurricanes are expected to increase in frequency as well. The Insurance Bureau of Canada reports that the frequency and severity of natural disasters are on the rise in Canada and worldwide. Water damage is now the leading cause of property damage in Canada, costing insurers about $1.7 bil- lion per year, recently surpassing fire as the No. 1 cause of claims. The devastation raises the question for many about how well our laws help us weather the storm. "Our firm is in down- town Calgary and when they had the big flood last June, they shut down the power," recalls Peter Collins, a partner at Field Law. "We were locked out of our building for a better part of a week." Calgary responded promptly after people were finally able to return to their flood-damaged homes and businesses and efforts to rebuild began. Changes were made to the city's building code to address some of the issues identified in the disas- ter, to make the infrastructure more resil- ient, and allow the city to deal with issues resulting from severe weather. One of the issues identified was the risks associated with buildings in flood- prone areas. Now any buildings in identi- fied areas undergoing renovations are sub- ject to some restrictions, including having mechanical systems such as furnaces and electrical panels above ground. "We're try- ing to make housing stock more resilient," says Collins. Governments and insurance compa- nies are saying there's only so much they can do to help, limiting coverage to a one-time payment that won't be repeated JErEmy BrUNEEl

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