Calgary’s Hailstorm: Why Repairs Are Taking So Long

A Perspective on Why It’s Taking So Long to Have Your Property Fixed

In the aftermath of Calgary’s recent hailstorm, property owners, condo boards, and property managers are feeling the strain of delayed repairs. With damage estimates reaching $2.8 billion and over 228,000 insurance claims filed, it's no surprise that the repair timeline is stretching out longer than expected. Let’s take a closer look at the situation and why this process is more complex than it may seem.

1. The Sheer Scale of the Damage

The storm that hit Calgary this August was one of the costliest in recent history. Of the $2.8 billion in total damage, it’s estimated that nearly 50% was vehicle-related. That leaves approximately $1.4 billion in property damage that needs to be repaired across homes, multi-family buildings, and commercial properties.

With so much damage, the number of insurance claims far exceeds the capacity of local contractors, causing bottlenecks in the repair process as insurance companies work through them.

2. The Number of Contractors Is Limited

According to the Better Business Bureau (BBB), there are over 300 contractors registered locally. However, not all of these are equipped for large-scale exterior repairs. Out of those, approximately 15 are commercial roofing companies, and 30-40 are focused on new construction. That leaves a limited pool of contractors who specialize in restoration projects like hail remediation for existing properties.

Even when factoring in contractors who may not be registered with the BBB, let’s assume there are about 300 exterior contractors in the area. Dividing the 228,000 insurance claims among these contractors means that each contractor would need to handle 760 projects just to meet the current demand.

3. Is This a Lot?

Yes, it is! To put this into perspective, the average cost of repairs for a single claim is estimated to be between $30,000 and $40,000. If we take the midpoint of $35,000 per project, this means that each contractor would need to complete $26.6 million worth of work over the next two years just to meet demand. However, most contractors don’t have the capacity to manage this volume of work.

4. Contractor Capacity: The Critical Bottleneck

The reality is that most contractors are limited by their capacity to take on projects. Most contractors typically have the bandwidth to complete only $3-5 million worth of work annually. For smaller contractors, this figure might be as low as $1-2 million.

This means there is about three times more work than contractors can handle, which creates a backlog for property owners waiting for repairs. This backlog is why you might feel like your property has been pushed down the priority list or why repairs haven’t started yet.

5. Financial Strain on Contractors

Another challenge contractors face during large-scale disasters is the financial burden. Many smaller contractors must front the cost of materials and labor before being able to invoice for completed work. Insurance can be slower to issue payment to contractors with how large these organizations are.  For a contractor with limited cash flow, taking on too many projects can lead to financial strain, which can further slow down the repair process.

Moreover, larger deposits requested by some contractors can represent a significant risk for property owners, especially if the contractor lacks the resources to complete the job in a timely manner. This is why working with a contractor that has the financial strength and capacity to scale up during periods of excess demand is essential.  Every large storm sees a number of smaller contractors crash and burn leaving many homeowners stranded and loosing their deposits.  One way to safeguard yourself from this is to use the preferred contractors of your insurance company.  This way, it places the responsibility on the insurance company to take this risk and not yourselves.  

What Can You Do as a Property Owner or Condo Board?

Here are a few practical steps you can take to navigate the delays and ensure your property gets the attention it needs:

• Choose a Larger Contractor with Capacity Smaller contractors may become overwhelmed by the sheer number of projects they’ve won, which can lead to delays and quality issues. Larger contractors like Epic Roofing & Exteriors have the systems, infrastructure, and teams in place to handle a higher volume of work without sacrificing quality or timelines. We have scalable processes to meet the demand during busy times like this.
• Get Through the Claims Process Quickly The faster you can file and complete your insurance claim, the sooner you’ll be in line for repairs. Delays in claims processing can lead to longer wait times for contractors to start work on your property, so it’s important to be proactive.
• Be Patient with the Repair Timeline Understand that there’s a limited supply of contractors relative to the overwhelming demand. While it can be frustrating, a bit of patience will go a long way in ensuring that your repairs are completed to the highest standards. Rushing into a deal with a contractor who can’t deliver quality work may lead to more problems down the line.

Why Epic Roofing & Exteriors?

At Epic Roofing & Exteriors, we have over 20 years of experience in the industry and the capacity to take on large-scale projects. Our team is equipped to handle the demands of this storm and provide efficient, high-quality repairs. We’ve built our reputation on transparent communication, reliability, and excellent craftsmanship, so you can trust that your property is in good hands.

In conclusion, while the scale of the damage from this hailstorm has put a strain on the industry, choosing a contractor with the resources and experience to manage large projects will ensure your property is restored as quickly and efficiently as possible. By staying proactive and patient, you can navigate this challenging time with confidence.

Have Questions? We’re Here to Help

If you have any questions or need further guidance on how to move forward, don’t hesitate to reach out to us. We’re here to provide the clarity and support you need to make informed decisions for your property. Let us help you through this process, offering the peace of mind that comes with working with a trusted and experienced partner.