News

Overland Flood Insurance and the Provincial Disaster Assistance Program (PDAP)
May 25, 2018

A Message from the Government of Saskatchewan
“A number of private insurers are now offering flood insurance products to homeowners across Saskatchewan. This change may affect your eligibility for financial assistance under PDAP in the future.”

PDAP is meant to provide financial assistance to eligible Saskatchewan homeowners that face natural disaster events where insurance is not currently available (i.e. readily available at a reasonable cost). It is not a substitute for private flood insurance.

In general, private flood insurance will allow homeowners to choose the amount of coverage and deductible level that best meets their needs.

What should I do right now?
Talk with your insurance broker or insurance company to learn more about these products. Ensure you have adequate insurance that best meets your needs.

What will happen if I don’t get flood insurance before it is readily available?
Homeowners who don’t purchase private flood insurance during this introductory period may still be eligible for PDAP assistance.

What will change once private flood insurance is considered to be readily available?
The Government of Saskatchewan will make an announcement. PDAP will no longer provide financial assistance to homeowners for losses associated with flood damage if private insurance is readily available at a reasonable cost. Some homeowners may still qualify for PDAP in exceptional cases to be determined.

Where can I find more information?

Article Source: Saskatchewan Broker Magazine by The Insurance Brokers Association of Saskatchewan, and PDAP, for a PDF version click here

 
Overland Flood Insurance in Saskatchewan
May 25, 2018

Insurance providers in Saskatchewan have recently started to offer policies that protect homeowners from overland flooding. The Government of Saskatchewan advises all property owners to obtain adequate coverage for their property.

Will flood insurance provide better coverage than the Provincial Disaster Assistance Program (PDAP)?
PDAP provides assistance for uninsurable losses of essential goods to help people get back to pre-disaster condition, with specific limits on the amount of maximum assistance that can be provided.
In general, overland flood insurance will allow people to choose the amount of coverage and the deductible level that best meets their needs. Homeowners are encouraged to speak to their insurance broker or insurance company.

Will PDAP still provide assistance if I don’t get flood insurance?
Eligible claims under PDAP depend on the availability and affordability of insurance in the Saskatchewan marketplace. At this point, overland flood insurance has not been deemed reasonably available in Saskatchewan.
Until it is determined to be reasonably available, applicants who have not purchased overland flood insurance will remain eligible for financial assistance under current PDAP regulations (even if a product was offered and declined). Applicants who have made the decision to purchase private flood insurance may not be considered eligible for financial assistance under PDAP for this type of loss, as per current regulations.
Once it is determined that flood insurance is reasonably available, some claims may no longer be eligible for PDAP assistance. Reasonable availability will be determined by PDAP. Homeowners are encouraged to speak to their insurance broker or insurance company.

What will PDAP pay for flood damage?
PDAP’s guidelines have always been consistent in that the program is not intended to compete with private insurers nor does it provide full compensation. PDAP provides assistance for uninsurable losses of essential goods to help people get back to pre-disaster condition, with specific limits on the amount of maximum assistance that can be provided.

If my property is located in a lower/higher-risk area, do I need to obtain insurance?
All homeowners should review their options for flood insurance with their insurance broker or insurance company to ensure they are getting adequate coverage for their properties, if it is available and at a reasonable cost. Reasonable cost varies by location of the property and level of risk.

Will PDAP cover my flood insurance deductible?
No, PDAP does not cover insurance deductibles.

Will PDAP top up my flood insurance amount?
No, PDAP cannot top up on any insurance coverage. However, until flood insurance is considered to be reasonably available in Saskatchewan, PDAP assistance will be considered in situations where eligible claimants can demonstrate that they are worse off as a result of purchasing flood insurance than if they had made a claim through PDAP. This could occur where an insurance company caps the total loss payable for a homeowner, perhaps because their home is in an area at a higher risk of flooding. By ensuring that homeowners are no worse off, this will avoid the perception that early adopters that chose to purchase insurance are being penalized for their choice.

What if I can’t get flood insurance?
Homeowners are strongly encouraged to check with their insurance broker and/or all insurance providers. As overland flooding insurance is new to Saskatchewan, not all insurance companies have announced implementation at this time.

 

If you need help getting in touch with your insurer, contact the IBC Consumer Information Centre at 1-844-2ASK-IBC (1-844-227-5422). Or you can utilize the resources provided below.

Resources

Insurance Bureau of Canada 

Insurance Councils of Saskatchewan 

Canadian Consumer Information 

Financial Consumer Agency of Canada (FCAC)

 

Article Source: Saskatchewan Broker Magazine by The Insurance Brokers Association of Saskatchewan, and PDAP. For a PDF version, click here.

Congratulations to the Cherry Insurance U of S Bursary Recipients
September 26, 2017

We are pleased to announce that the Cherry Insurance Entrance Bursaries with the University of Saskatchewan have been awarded for 2017.

The bursaries were awarded to Kathy Bishop of Saskatoon who graduated from Evan Hardy Collegiate and will attend the University of Saskatchewan and Braden Friesen of North Battleford who graduated from North Battleford High School and has been accepted to the Edwards School of Business.

We would like to extend our congratulations to the recipients of the bursaries and wish them all the best with their continued education and future endeavors.

To find out more information on the Cherry Insurance Entrance Bursaries or to apply please visit the University of Saskatchewan website at https://admissions.usask.ca/money/search-awards.php?award=300873EB01#myScholarships

PST on Insurance Premiums
July 21, 2017

There has been a lot of talk lately regarding the Saskatchewan Party’s budget announcement on March 22, 2017 however one change that has gone relatively unnoticed is the implementation of PST on ALL insurance premiums.

We are by now all very aware of the change in tax from 5% to 6% however very few people are aware, at least until they receive their invoice, that this will also apply to their driver’s license, vehicle registration, extension automobile policies, home insurance, business insurance and so much more.

August 1, 2017 will mark the date that insurance policies will be subject to PST in Saskatchewan however this is not new in Canada with Ontario applying tax at 8% in July 2010, Manitoba applied tax at 8% in July 2012 and Newfoundland implemented a tax at a whopping 15% in July 2016.

While the implementation date of the tax is August 1, 2017 the tax will not apply to all transactions immediately:

  • Tax will apply to new and renewal policies with an effective on or after August 1, 2017 along with all policy changes made after renewal
  • Tax will not apply to new or renewal policies with an effective date prior to August 1, 2017 until the next renewal (i.e. Policy effective date July 31, 2017 will not be subject to PST until July 31, 2018)
  • Tax will not apply to changes made throughout the policy term of a policy with an effective date prior to August 1, 2017 (i.e. Policy effective July 31, 2017 with a policy change made effective June 1, 2018 will not be subject to PST)

Your invoice or payment plan will indicate any applicable tax.  Please review these documents for full details.

For more information, questions, comments or concerns visit www.finance.gov.sk.ca/taxes or contact the Ministry of Finance at 1-800-667-6102.

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