Flood events are becoming more common in Burlington with the intensification of development and reduced greenspace in the city. The trend toward less soil between buildings, covered by patios, sidewalks, buildings or pools is reducing drainage and absorption. This can end up diverting stormwater to our basements as a catchment. So how does this affect your housing affordability?
Impact on taxes
The cost of cleanup and repairs of a flood event are substantial and difficult to plan. In 2014, the cost to the City of Burlington was in excess of $90 million and we are still counting the impact from July 2024. Other costs include erosion control projects, infrastructure adjustments and the trend in North Burlington of stormwater ponds which must be maintained on a 7 – 8 year cycle at a cost.
Developers are required under new provincial guidelines to set aside less land for parks. The smaller lot sizes and increasing lot coverage harden a greater percentage of the surfaces (and reduce space for trees to grow) such that stormwater ponds are a greater necessity. These ponds require dedicated land, an expense for a single purpose. In older areas of the City, greenspace served two purposes – both for stormwater mitigation and also recreation. The diversion of expenses from the developer of new housing is increasing the burden on property taxes. If we were to rethink this strategy and view the total developable space, one might ask, ”What private lot space (including the possibility of growing trees for absorption) could eliminate the need for a stormwater pond?”
Insurance
With the increasing frequency of flooding, the cost of premiums is rising. It is important to note that insurance companies use comprehensive and complex flood mapping rather than individual claims experience to set premiums.
Many homeowners are unaware, until they have a claim, that flood risks are covered by additional riders and premiums to a typical policy. According to the Insurance Bureau of Canada, 40 – 60% of Canadians are not covered for flood risk. With climate change and increasing claims experience, premiums for these riders are increasing, if available. Have you reviewed your policy details lately?
Personal Health and Financial Impact
Flooding can lead to mold and mildew which can cause respiratory problems, allergies or irritations.
In addition to health risks, flooding (particularly on a repetitive basis) comes with financial burdens such as time away from work, renovations and/or replacement of furnishings and depreciation of a home’s structure or even dislocation during repairs.
Taken together, all of these rising costs are impacting housing affordability and the ability of Canadians to prepare for retirement or achieve other financial goals.
