Is your home insured for water damage?

Is your home insured for water damage?

Images of extreme flooding have been dominating headlines of late. Unfortunately, it doesn't take exceptional hurricanes, like Harvey or Irma, to flood urban areas. Residents of Windsor and Essex County experienced devastating damage to their homes in August as heavy rainfall caused thousands of people to wake up to flooded basements.

Canada has become wetter, with a 16% increase in precipitation since the 1950’s. Damage from storms, spring thaw and other fresh water flooding is occurring everywhere across the country, accounting for 40% of property insurance claims annually. Yet, the sad reality is that many people do not prioritize water protection when it comes to their home insurance.

Did you know that water entering your home from sources like sewer back-up and heavy rain are not necessarily covered under all home insurance policies? These types of coverages are additional options, called endorsements, that you may choose to add to your standard home insurance policy.

Water Coverage Options

Flooding is the number one cause of natural disaster in Canada. This has inspired insurers to rethink the way they treat water damage, including the introduction of overland water protection insurance. It is one of two types of insurance that can be added to your home insurance policy to protect your home and your belongings:

  • Sewer back-up coverage – This insurance covers you if severe weather or storms cause sewers, septic tanks and/or sump pumps to backup and cause flooding in your home.
  • Overland water protection – Overland water protection covers you if water enters your property as a result of a sudden accumulation caused by rains, melting snow, spring run-offs, and/or overflows of lakes and rivers. It is only available in tandem with sewer backup coverage, meaning you need to have both to obtain overland protection.

Water can cause a lot of damage to your home, and repairs can be costly. Don’t presume you’re fully covered only to find out you’re not. Make sure you know and understand the coverage options you have under your home insurance policy. To learn more about water protection offered through OTIP, give us a call at 1-866-523-4111. Our Brokers are here to help you find the coverage that is best for you.

More on water damage: Learn how you can prevent water damage to your home