Canadians rely on their home insurance to financially protect them from various risks and perils (insurance terms for unavoidable or unforeseeable events) like house fires, wind storms and vandalism. Most of these risks and perils have relatively straightforward definitions; however, some risks, like water damage, are less clear.
As you may know, standard home insurance policies don't automatically protect you from all forms of water damage. This leads to the question, "what type of water damage is covered by homeowners insurance in Canada?".
Water damage comes in several forms, so you need to know what is and isn't covered by your home insurance policy if you want to ensure that you're financially protected.
Do you want to learn more? Continue reading to get the inside scoop on home insurance and water damage coverage in Canada.
What are the three different types of water damage?
There are three primary types of water damage that policyholders should be aware of: general water damage, overland flood damage and sewer backup damage.
Some of these types of water damage are covered by insurance, whereas others are not.
Let's find out what type of water damage is covered by homeowners insurance:
Does home insurance cover general water damage in Canada?
In many cases, yes, standard home insurance policies can cover water damage-related expenses. Some examples of general water damage include:
- Frozen pipes
- Burst pipes
- Broken water lines
- Leaking appliances
But, there's an important stipulation that you should be aware of: the context of the event.
To qualify for insurance water damage coverage, the water damage needs to be sudden and unavoidable. For instance, if your recently-installed dishwasher starts to leak and causes thousands of dollars worth of water damage, your home insurance can cover all or a portion of the costs.
But if the water damage was caused by negligence (i.e. you were aware of the damage and chose not to address it until it became severe), then your home insurance company will most likely not help you cover any of the related expenses.
So, to answer the question, "what type of water damage is covered by homeowners insurance in Canada?", you can receive coverage for general water damage, but it needs to be instant and unavoidable.
That being said, there are a few forms of optional insurance products (known as insurance endorsements or insurance add-ons) that you can use to broaden the scope of your coverage.
Does insurance cover water damage caused by overland flooding?
No, standard home insurance policies do not automatically include coverage for overland flood damage.
"Overland floods" are floods that flow across the surface of the ground and seep into homes. Overland floods are known to cause significant amounts of physical damage to buildings, appliances, personal items, etc.
However, even though standard home insurance policies don't automatically include coverage for overland floods, you can invest in overland flood coverage. Overland flood coverage is an add-on that financially protects homeowners from overland flooding caused by extensive rainfall or runoff from melting snow.
*Please remember that coverage and limits vary from company to company. You can speak with your Surex advisor if you'd like to learn more about overland flood coverage in Canada.*
Is sewer backup water damage covered by insurance in Canada?
Does your home have a basement? Then you may want to take a moment to learn about sewer backup coverage.
Much like overland floods, sewer backups are not generally included in standard home insurance policies. This is primarily due to the fact that sewer backups are a niche risk. But, if you'd like to stay a step ahead of potential problems, you can chat with your Surex insurance advisor about adding sewer backup coverage to your policy.
Sewer backup coverage is another optional insurance add-on that you can include in your home insurance policy. This niche type of coverage financially protects you from sewage damage caused by clogged, broken or otherwise compromised sewer lines.
Although investing in sewer line coverage will increase your premium, it's worth every penny knowing that you're protecting your biggest investment: your home.
How to protect your home from potential water damage – 13 tips for homeowners in Canada
Whether you have a standard home insurance policy or have an extensive level of coverage, you should try to do everything that you can to protect your home from water damage. Having a solid game plan will help you keep your property in good condition and reduce the likelihood of unexpected water damage.
Here are some useful tips that you can use to prevent water damage in the future:
- Install a backflow valve
- Look for and repair cracks and leaks by basement windows
- Make sure your sump pump is in proper working order
- Get your roof professionally inspected once per year
- Clean your roof (by yourself or with the help of a professional) after heavy snowfalls
- Remove large ice dams from your roof (with the help of a professional)
- Find a reputable company/contractor before installing a new appliance in your home
- Clean your eavestroughs in the spring and autumn
- Assess your caulking and grouting
- Inspect your drains on a regular basis
- Check the moisture levels in your home regularly
- Pay attention to the weather (particularly in the spring and winter)
- Speak with your Surex insurance advisor about adding overland flood coverage or sewer back up coverage to your home insurance policy
Using these tips will drastically reduce the chances of severe water damage in your home.
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