This insurance giant is pulling out of home insurance in New Brunswick
Published: April 29, 2019
Updated: June 3, 2019
Author: Luke Jones
CATEGORY: Home Insurance
New Brunswick has been hit by severe flooding, including in the province’s capital Fredericton. Warming spring weather causing snowmelt and heavy rains have caused one insurance company to cancel its home insurance policies in the region.
This is no small insurance company either. Economical Insurance is no longer offering home coverage. CBC News reports a customer in New Brunswick has been continued home insurance with the company.
Steve Rogers says Economical Insurance said it cannot provide a policy because if no longer writes for home insurance in a “high-risk area” like Fredericton.
The city is currently experiencing heavy floods, the second consecutive year of water damage reaching record-breaking levels. Rogers says his home, like many others, is not at risk. However, it seems Economical Insurance has made a blanket decision.
“The Mactaquac Dam would have to break for it to even get close to us, I believe,” Rogers said.
Despite Rogers informing the company his home is safe, Economical stuck to its position. Now he must search for a new home insurance provider as his Economical policy will expire at the end of this month.
Michèle Pelletier, consumer advocate in the province, said insurance companies do not typically cancel a policy mid-term, but they are allowed to do so or choose not to renew.
“It’s very unfortunate, but that is the way our act is done,” Pelletier told CBC News.