The provincial government is ending its contract with the company that has been running the Disaster Recovery Program.
Landlink Consulting has handled the program for 20 years but came under fire for the way it dealt with claims from the 2013 flood in southern Alberta.
The province's municipal affairs minister says the contract just wasn't designed to handle Canada's biggest natural disaster.
"It was inadequate for a disaster of this scale, with over 10,000 applications," said Ken Hughes. "I'll bet you no province in the country would be built today for a program with over 10,000 disaster recovery applications. However, from here on it, Alberta will be."
Landlink has been given until March 31 to resolve 90 per cent of the nearly 7,000 residential claims last year.
It's not clear which company would take over after that time.