A new report from Statistics Canada shows that Chatham-Kent (CK) has the highest share of residential properties located in high flood-hazard (HFH) areas in all of Ontario.
The analysis showed that 35.9 per cent of properties across CK (13,860 properties) are in high-risk flood areas, double the next highest Ontario municipality and good enough for second overall in Canada in terms of housing stock share behind Winnipeg.
Local flood hazards include the Thames River, which bisects the region, and the Sydenham River to the northwest.
According to Statistics Canada, recent construction patterns in Chatham-Kent may suggest a gradual shift away from building in high flood-hazard areas, despite continued development.
The national statistical agency added that 29.4 per cent of homes built from 2016 to 2022 were in HFH areas, compared with 33.2 per cent of those built from 2006 to 2015 and 36.2 per cent of those built in 2005 or earlier.
Statistics Canada also discovered that the median assessment value of single-detached houses was 13.9 per cent lower in HFH areas than outside these areas, adding that lower-value homes are built in lower-value lands, such as flood-prone areas.
"Relatively more affordable properties may also have attracted some lower-income homeowners, as suggested by the lower median family income of owner-occupants in HFH areas (-10.5 per cent) than in non-HFH areas," noted the national statistics office.
Rates.ca, a Canadian online insurance rate-comparison platform, noted home insurance costs in CK are also above the provincial average as a result of the flood-prone homes within the floodplain due to heavy rainfall, snowmelt, or overflowing rivers.
They estimate the average annual home insurance premium in Chatham is $2,575, up 8.6 per cent year-over-year, and 15.2 per cent above the Ontario average of $2,235.
Rates.ca urges homeowners to review how much protection they have and what they would be responsible for paying in the event of a claim.
“Flood risk is highly local, and that’s something insurers pay close attention to when assessing a property,” said David Mayer, Director of Insurance at Rates.ca. “Two homes in the same region can have very different risk profiles depending on factors like proximity to water, drainage and the history of water-related claims in the area. That can influence both the coverage available and what a homeowner pays for insurance.”
Overland flood coverage generally protects against water entering a home from the surface, while sewer backup coverage can protect against water backing up through sewers, drains, sump pumps or septic systems.
