Water damage is one of the most common and expensive issues homeowners face in Canada. From burst pipes and roof leaks to flooded basements, the repair costs can be overwhelming. Although standard home insurance often covers some types of water damage, it usually excludes others—leaving homeowners exposed unless they secure additional protection.
Most standard policies cover sudden and accidental water damage. These typically include:
It is important to note that insurance usually covers the resulting damage, not necessarily the source. For example, while your policy may cover the cost of repairing water-damaged flooring or drywall, it may not pay to replace corroded pipes that caused the leak.
Flood damage, whether from heavy rainfall, overflowing rivers, melting snow, or rising groundwater, is not covered under standard policies. Homeowners who live in flood-prone areas must purchase separate flood or overland water insurance to be fully protected.
Damage from sewer backups, sump pump failures, or clogged drains is another common exclusion. Optional sewer backup coverage is widely available and provides important protection, particularly for homes with basements.
Slow leaks or gradual water damage are rarely covered. This includes damage from faulty plumbing, aging roofs, or neglected appliances. Insurers generally expect homeowners to maintain their properties, so damage caused by ongoing issues is often considered preventable.
Water entering a home through the foundation or basement walls due to high water tables or heavy rainfall is also excluded. Specialized coverage or endorsements may be required to protect against this type of damage.
Some home insurance policies cover sudden interior damage, but many exclude claims linked to poor upkeep or insulation. Optional endorsements are sometimes available for added protection against ice damming.
While exclusions are common, homeowners can take steps to secure broader protection and reduce risks.
Brokers understand which risks are common in your area and can recommend endorsements to fill gaps in your policy.
Popular add-ons include:
Inspect your roof, plumbing, and foundation regularly. Replace aging pipes, repair shingles, and service appliances to reduce the likelihood of leaks or backups.
Tools such as sump pumps, backwater valves, and basement waterproofing significantly reduce the risk of water damage in flood-prone areas.
Keep records of repairs, upgrades, or professional services. This demonstrates responsible ownership and can support insurance claims.
If water damage occurs, notify your insurer immediately. Delays can worsen the damage and increase the risk of a denied claim.
Water damage is a serious concern for Canadian homeowners, and while many types of water damage are covered by standard property insurance policies, some of the most costly incidents, such as flooding, sewer backups, and gradual leaks, are often excluded. It's important to understand these exclusions and work with property insurance brokers in Toronto, such as Begin Insurance, to ensure that your home is fully protected.
We can help you find reliable, tailored and cheap property insurance for your home, condo, rented dwellings, secondary homes and other properties. Our experienced and licensed insurance brokers comb the market for the best home insurance coverage based on individual needs. With our guidance, you can select the right coverage options with ease or extend your existing coverage. Our professionals can help you get extra coverage for your high-value items, collections and sports equipment, overland flooding and sewer backup, personal liability coverage and more.
Posted Jul 4, 2019