A home is an invaluable asset. And every homeowner wants to protect the property from possible perils, hence the need for home insurance. While every homeowner aims at buying the right coverage, shopping for insurance can be overwhelming. The number of coverage options is limitless. And without the necessary guidance, you can miss out on essential coverages or even purchase an insufficient one. 

In Canada, freshwater floods are among the most common natural hazards. And to help homeowners counter this risk, insurers offer overland water coverage. You may not think much about this coverage until the rain and hail season begins or your home is flooded due to a blockage in the septic tank. Let’s dive into the A-Z of overland water damage. This may be especially important for places like New Brunswick. 

But first, what is overland water coverage? 

Among the questions that insurers get from new homeowners is: ‘What is overland water coverage?’ In Canada, overland water coverage was not initially offered by traditional insurance providers. However, the coverage was deemed necessary after flooding events such as the 2013 Southern Alberta flooding, the 2013 Toronto flooding, and the 2014 Southern Manitoba flooding. These contributed to overland water coverage Canada inclusions. 

Overland water damage can be catastrophic. Not only is property damaged but also lives can be lost. Overland water coverage is insurance that provides coverage for property damage arising from water entering a property from overland. This can be from spring run-offs, heavy rain, inland water bodies and even overflowing rivers. Since this coverage is not included in a standard home insurance policy, homeowners may ignore its importance, only to regret it later when the property is damaged by water. 

Overland water insurance is ideal for all homeowners, condominium owners, and even tenants. For instance, if the house you rented becomes uninhabitable due to water damage, the insurer can cater for the costs of food and accommodation. Also, you can claim additional living expenses if the government orders an evacuation due to flooding.   

What are some of the coverages that are provided under overland water insurance?  

Once you purchase overland water coverage, your insurer will cater to damage arising from issues such as:

• Rainwater accumulation that enters your garage door, basement, or house
• Surface water entering the house
• Sewer backup that is caused by heavy rain
• An accidental dam break
• Sewer backup that is caused by the overflow of a lake or a freshwater body

What type of water damage is not covered under overland water insurance?

• Long-lasting leakages or seepage
• Water that gets to the house through the roof due to wear and tear
• Snow or rainwater that enters through an open window
• Tidal waves, tsunamis, and flooding caused by a rise of ocean water levels 

How much does overland water coverage cost? 

Is overland water coverage economical? Yes. The benefits that you get from the coverage surpass the cost. The price of the coverage is not a one-size-fits-all. As such, various factors will come into play when determining how much you will pay for the insurance. Among these include:

• The risk level

This is the major consideration when determining the cost of your premiums. If you live in areas with a low risk of overland water issues, then you will pay a lower premium. However, if you live in high-risk areas, the cost of your coverage will be more expensive. This is because the chances of you making claims are higher and your insurer will be required to absorb the cost of the sustained damage. 

• The number of overland water-related damage claims that you have made

If you have made many claims related to overland water damage, then your insurance will be more expensive. As such, homeowners should avoid filing claims for water damages that are excluded. For instance, most insurers exclude overland water damage issues resulting from wear and tear on the roof. Filing such a claim will not get you any compensation. 

Is overland water coverage available for any Canadian? 

Overland water coverage can be purchased by any homeowner. However, it may not be offered to persons living in areas that are very prone to overland flooding. If you are unsure whether you are eligible for overland water coverage, contact insurance providers to ascertain whether they offer coverage to your location.  

How can you lower the cost of overland water coverage? 

Increasing the deductible amount is a sure way of reducing the premium amount. Opting for a lower deductible increases your premium while a higher deductible reduces your premium. Increasing your deductible to an amount that you cannot afford can leave you in a sticky situation when making a claim. As such, consider the likelihood of the risk and how comfortable you are paying the deductible. Also, your insurer may lower the cost of your insurance if you put up measures to prevent flooding in your home. 

How can you prevent flooding in your home? 

• Have flood-preventive measures in your home

Rainwater is uncontrollable. However, there are measures that you can take to minimize flooding. For instance, significant landscape changes or purchasing a drainage pump can help.

• Maintain your homestead

This may include sidewalks, decks, patios, and driveways that may have shifted over the years. If these areas are not repaired, they can cause water to pool near the home. 

• Clearing snow

Clearing snow before it begins to melt can minimize the risk of flooding in your home. 

• Catching rainwater 

Install the right rain barrel to catch rainwater. This also includes maintaining gutters and eavestroughs seeing that they block easily. 

• Maintain your house

If the roof has worn out over the years, replace it before the start of the rainy season. 

• Install water leak sensors

 If you live in a place that is prone to overland water issues, installing water leak alarms and sensors can alert you about potential leaks. 

Bottomline

A home is a vital yet expensive investment. It is important to take precautionary measures to prevent overland water issues. However, some uncontrollable events, such as heavy rainfall can occur. Purchasing overland water coverage can protect you financially in such instances. While it will increase the cost of your homeowner’s insurance, it’s a vital add-on insurance coverage.