According to Public Safety Canada, floods are the most common natural hazard in the country. Additionally, they are among the most expensive. When it comes to protecting homes from floods, most property owners assume their home insurance policies will provide adequate coverage. While this is sometimes true, it’s not always the case. Just a few centimetres of water from flooding can cause costly, irreversible damage to your home. Dedicating protection through overland flood insurance is essential. We’ve answered some of the most common questions below about overland water coverage and water damage.
Water Damage And Overland Water Coverage
Overland Water Coverage is an insurance endorsement that can be added to your home insurance policy. As you might expect, this protects your home from any water-related damage. This insurance can protect you from rising rivers, streams, or other bodies of water that overflow onto dry land, causing damage to your home. On top of this, it protects your property from heavy rain or thawing snow that could cause damage.
If left unchecked, these sources of water can enter your home through the foundation, windows, doors, cracks, or other entry points. If water enters your basement, overland water coverage can save you.
Generally, home insurance policies don’t cover certain types of unexpected events, such as floods, earthquakes, landslides and sewer backup. For these, you would need a more specific type of insurance coverage. This is where overland water coverage comes into play.
Water Damage: Do I Need Insurance?
Let’s face it, flood risks and water damage to your home can be costly. This is especially true if your basement is finished, as you’ll need to repair the drywall, flooring, and even furnishings. When you’re without overland water coverage, you may have to pay the bill yourself. Nowadays, the average cost to repair a flooded basement is over $40,000. This is in comparison to the $250 it costs to prevent a flooded basement.
Whether or not overland water damage has a deductible depends on the insurance provider. For some insurers, overland water coverage may have its own deductible, which is separate from your policy’s overall deductible. With other insurers, overland water coverage has the same deductible as your policy’s overall deductible. Although overland water coverage is offered to most Canadians, if you live in an area that’s at extreme risk of overland flooding, you might not be eligible. If you have too many past overland water claims, you might also be ineligible.
Water Damage And Rentals
If you’re renting your apartment, you’ll need to protect any items stored in the basement. If you have to move out of your eighth-floor condo because the ground floor has been flooded, this coverage will cover hotel costs, additional transportation costs, and some food costs. The same applies to a basement apartment since you’d risk water damage to all your belongings if overland water comes into your home. If you’re renting a whole house with a furnished basement, you’ll want to protect that, too.
Water Coverage Vs Sewer Backup Coverage: What’s The Difference?
A sewer backup is water coming from an external fixture in the home. So, if you’re attached to the sewer system, and that backs up, that’s considered a sewer backup. Overland water is water that enters a water body from outside it and shouldn’t be there. Say there is a river beside you, the river overflows and enters your home – that’s an overland water event.
At the end of the day, these two coverages go hand in hand. Although many providers allow you to buy sewer backup coverage on its own, remember that if sewer backup occurs due to overland water, you will not be covered.
Groundwater Coverage And Surface Water Exclusions
In addition to overland flood coverage, companies are beginning to offer groundwater coverage. This protects against water damage from underground natural sources, such as basement walls, foundations, and floors (as long as the loss is sudden and accidental).
On top of this, some homeowner property policies often contain exclusions for loss caused by surface water runoff. While the term “surface water” may seem self-explanatory, not all damage from running water is excluded.
How Do I Know If I’m Eligible?
About 90 percent of the population is eligible for overland water coverage. If you live in a high-risk area, you may be limited in the coverage available to you, or it may not be offered at all. The benefit of working with an isure broker is that we have access to multiple markets, allowing us to identify which companies offer it. Just because one company doesn’t provide it, it doesn’t mean all companies don’t.
Overland water insurance can cover more than just water rising above the riverbanks. Torrential downpours or spring melting are both significant sources of surface water that can enter your home. Water from sewer pipes or drains, septic back-up, or failed sump pumps is also a common claim covered under sewer back-up on your policy.
Preventing Water Damage In Your Home
Though insurance is necessary for protecting your home from water damage, it’s also important to regularly check your basement to make sure it isn’t susceptible to water damage. This is done by regularly checking for water seeping into your basement, which could cause incremental damage. In most cases, home insurance won’t cover you for preventable issues, such as mould caused by long-term seepage. If you discover mould, you may be left to pay for repairs on your own.
At the end of the day, if you find there is a risk of water seeping into your basement, it’s likely worth the cost to waterproof it. Though sometimes pricy, it’s always a cheaper option than paying for a water-damaged basement. As always, if you have any other water damage questions or would like to discuss home insurance coverage, don’t hesitate to contact us! isure offers some of the best prices in the province, along with customer service you can always count on! Contact us or request a quote today!
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