8 – RECOVERY
88 Government of British Columbia
Private insurance for individuals and businesses covers most risks; however,
with the ever increasing number of insurance claims being covered and the
involvement of international reinsurers, the timing of a settlement can have a
significant impact on recovery. Insurance premiums are expected to increase
over time as the payment of claims from disasters increases. The ability of
households, businesses, and local government to secure insurance may be a
critical element in determining how quickly recovery occurs. The onus is largely
on the insurance holder to know what his or her policy covers and whom to
contact when the need arises.
Disaster Financial Assistance (DFA) Program
When a disaster has a significant impact on a community, the province may
declare the area eligible for support through the Disaster Financial Assistance
(DFA) Program. Administered by EMBC, this program provides compensation in
compliance with the Emergency Program Act and the Compensation and
Disaster Financial Assistance Regulation.
DFA helps those affected by a disaster in situations where the losses could not
be insured or where other assistance programs are not available. It provides or
reinstates the necessities of life, including help to repair and restore damaged
homes and to re-establish or maintain the viability of small businesses and
working farms. DFA also helps local governments repair essential infrastructure.
DFA can provide financial compensation for losses deemed eligible under the
program criteria. While there is no maximum claim amount for local
governments, they are required to provide a recovery plan by completing a
Local Government Application for DFA.
Grants, special funding, and recovery loans
Under certain circumstances, specialized grants, funding, or loans may be
available to support individual, business, or community recovery. Generally
sponsored by provincial and federal governments, these programs do not exist
before a disaster; hence, funding streams are not guaranteed. Furthermore,
eligibility requirements, coverage limitations, and terms and conditions for
financial support vary widely and likely depend on the specific effects of the
emergency/disaster. Regardless, in the event of a major disaster, local
authorities can assist individuals and businesses by ensuring that, should special
funds become available, information about them is accessible (ideally through
“one-stop shop” websites and resilience centers), and applicants are offered
guidance and advice as they navigate through documentation requirements.