Flooded Alberta homeowners on their own if they rebuild in high-risk areas

In a process that's bound to be watched in other flood-prone parts of Canada, the Alberta government has outlined its new rules for building and rebuilding in high-risk flood zones.

The catastrophic, costly inundation of Calgary, High River and Canmore last month spurred Alberta's Conservative government into action after ignoring the threat for years.

The bottom line: Those who chose to rebuild in a zone designated as a floodway — where water flows would be deep and fast — are on their own when the next deluge hits. They will not be eligible again for compensation from the province's Disaster Recovery Fund, CBC News reported.

The new rules put flood-prone areas of the province into two categories, floodways and flood fringe.

"They will alter the course of development in our province," said Municipal Affairs Minister Doug Griffiths.

CBC News said that under the new policy, homeowners on floodways who choose to rebuild on higher ground would get provincial assistance, including purchasing their property in some cases and possibly turning into parkland.

Those living in designated flood-fringe areas would be required to flood-proof their homes to be eligible for provincial disaster compensation in the future. Those affected by the June floods will get an additional 15 per cent compensation to do the flood-proofing work, such as raising their homes off the ground, CBC News said.

[ Related: Alberta flood-area building rules may change, says Redford ]

"Homeowners need to be aware that, depending on their decisions, recovery funding may not be available in the event of future flooding,” said Griffiths.

“Funding under the Disaster Recovery Program is not insurance — it comes with conditions. It would not be a prudent use of taxpayer dollars to support behaviour that puts people's homes and safety in harm's way."

The Alberta government is expected to shell out a $1 billion or more to cover damage from June's flooding. Homeowner insurance in Canada does not include coverage from overland flooding, only sewer backup.

The waters had hardly begun receding when the government began mulling policy changes to discourage development in low-lying areas at risk from flooding.

“No eligible homeowner with flood damage will go without financial support," Griffiths, who also chairs the province's flood-recovery task force, said, according to Global News. "But when we’re using Albertans’ tax dollars, we need to empower those receiving funds to make responsible choices.”

Global noted the new measures were contained in a 2006 report on floods that hit the province the previous year, taking three lives and costing the government $165 million in disaster payments. The report contained 18 recommendations on flood mitigation that were largely ignored. The report itself wasn't made public until last year.

[ Related: Siksika Nation still devastated by flood damage ]

The voice of Canada's insurance industry supported the new Alberta policy, which was announced Sunday.

"We believe today's announcement will make communities more resilient and avoid future damage caused by flooding," Bill Adams, western and Pacific vice president of the Insurance Bureau of Canada, said in a news release.

The new policy seems to balance the need to reduce provincial taxpayers' vulnerability to another big payout in a future flood with Albertans' cherished property rights.

Sun News Network reported that Griffiths expects little pushback from the new rules.

"I think anybody who would stand up and say you still have to allow this, I'm going to argue we're spending a lot of taxpayer dollars to remedy a situation and we need a sound policy going forward," the minister said.

"People have witnessed first-hand what that sort of activity can do and understand we can't do that anymore."