The province has finalized 68 claims with payouts of $479,702.60 resulting from the January storm surge. Twenty-two claims remain outstanding, mainly due to the submission of outstanding invoices from claimants or resolution of an adjustment dispute. It is estimated that final claims will exceed one million dollars.
On January 21, 2000, a 2.2-metre tidal surge caused by an intense low pressure system, heavy winds and associated high tides caused widespread coastal flooding across PEI. This flooding necessitated evacuation of residents and caused substantial damage to public infrastructures (roads and bridges) and to private homes and businesses.
As a result of the storm surge, the provincial government introduced a compensation program modelled on the Federal Disaster Financial Assistance Arrangements. An emergency help line was set up by the Emergency Measures Organization (EMO) to record all claims from people who had suffered losses.
Independent adjusters were retained to assess the damage to each claim received and report back for assessment by EMO and the Risk Management and Insurance section of the Provincial Treasury. A total of 157 claims exceeding $1.1 million were submitted for consideration.
On review, 67 claims did not meet the Disaster Financial Assistance Arrangements requirements; of these, nine were federally owned wharfs. Damages not eligible under the Federal Guidelines include cottages, recreational properties, soil erosion and outbuildings.
The province has applied to the Disaster Financial Assistance Arrangements for an advance reimbursement of these claims. To date, no funds have been received by the province from the Federal Government. Under the DFAA funding formula, the Federal Government will reimburse the province for about $750,000 of the one million dollars in claims.