Canadian flood victims are offered government cash advances

Insurance payouts are being offered as cash now from the government of Canada. The Provincial Disaster Assistance Program is funding this cash til payday loan. Estimates of the amount of damage from the Maple Creek floods are just now being put together, but the residents are already cleaning up.

Article source: Canadian government gives cash advances to flood victims by Personal Money Store

The flooding in Maple Creek

When Saskatchewan flooded in 2010, it shut down big parts of the Trans-Canada highway. Some areas, like Last Mountain Lake, aren’t yet done flooding. Expectations of damages to just the crops in the area are about $ 300 million Canadian dollars. The property damage could be at least that much money.

PDAP pays out overnight loan to residents

Though the Provincial Disaster Assistance Program generally waits until insurance adjusters have made their estimates to pay out, organizers are forgoing that requirement within the case of Maple Creek. Residents can qualify for one of two types of assistance. 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 also the event of a disaster, these payments are usually accessible in just a couple of days. The PDAP also says they are budgeting $ 160,000 to cover "uninsurable losses.” All claims can be paid by Sunday, according to provincial officials.

Debate over crop insurance

In Maple Creek and surrounding areas, discussions about crop insurance are bringing up controversy. Only about 70 percent of farmers within the area purchased crop insurance this year, but the government is preparing on paying out benefits to most farmers. Some farmers who purchased insurance are concerned that this policy will end up costing them money. The cost of flood damage is nevertheless being estimated by the government insurance adjusters that are within the area.Once insurance adjusters have completed their work, companies will start cutting checks, at which point the cash advances from the government will be due.