The government of Canada is offering cash advances from insurance payouts. This loan cash is being funded mostly by the PDAP – Provincial Disaster Assistance Program. Residents are already cleaning up, although cost of repair is not yet in.
Highways overflow with flooding around Maple Creek
When Saskatchewan flooded in 2010, it shut down big parts of the Trans-Canada highway. Peak levels of flood water have not yet been reached in some areas, like Last Mountain Lake. There can be $ 300 million or more in damages to just crops. Property damage will likely be that much or more.
PDAP pays out overnight loan to residents
Before the PDAP pays out money, they typically require an estimate from insurance adjusters, but within the case of Maple Creek, they are ignoring that requirement. There are two separate types of money being provided to residents. First, the PDAP provides up to $ 3,000 as cash advances on expected insurance payments. Intended to fill the gap between the payout of insurance and the event of a disaster, these payments are generally accessible in just a few days. The PDAP also says they are budgeting $ 160,000 to cover “uninsurable losses.” The province has said that it hopes all claims are paid no later than this Sunday.
The crop insurance debate in Canada
Crop insurance is creating a debate in some areas. Only about 70 percent of farmers in the area purchased crop insurance this year, but the government is planning on paying out benefits to most farmers. Those that did purchase insurance are worried that this is going to drain what they paid in and decreases incentive for everyone to purchase insurance the next year. The cost of flood damage is nevertheless being estimated by the government insurance adjusters that are within the area.The benefits of insurance payouts will come after adjusters have completed their work.
