Water damage is one of the leading causes of home insurance claims in Canada, and Ontario homeowners are increasingly affected. Whether caused by a burst pipe, leaky roof, or flooded basement, water damage can lead to thousands of dollars in repairs and complex insurance claims.
As spring brings heavy rainfall, now is the time to prepare your home and mitigate potential losses during flood season.
Why Water Damage Is Increasing in Ontario
According to the Insurance Bureau of Canada (IBC), catastrophic weather-related losses now exceed $2 billion annually, with water damage representing a major portion of claims.
However, many homeowners are unaware that standard home insurance does not include overland flooding or sewer backup unless optional coverage is added.
What Counts as Flooding in Ontario?
In insurance terms, flooding typically includes:
- Heavy rainfall or snowmelt
- Overflow from rivers, lakes, or streams
- Stormwater entering the home from outside
- Sewer backup caused by system overload
Key distinction:
- Overland flooding: Water enters from outside the home
- Sewer backup: Water enters through plumbing or drains
Both require optional endorsements in most policies.
If you are a homeowner concerned about the risk of flooding on your home, click here to learn more about flood mapping and your home’s potential risk.
Common Causes of Water Damage
1. Roof Damage and Ice Dams
Winter conditions can cause ice buildup, forcing water under shingles and into the home.
Prevention:
- Clean eavestroughs regularly
- Extend downspouts away from the foundation
- Maintain attic insulation and ventilation
- Remove heavy snow buildup when necessary
2. Frozen or Burst Pipes
Pipes in unheated areas can freeze and burst, causing severe damage.
Prevention:
- Insulate exposed pipes
- Disconnect outdoor hoses in winter
- Keep home heated during absences
- Shut off water supply if leaving for extended periods
3. Foundation and Basement Leaks
Water can enter through cracks, especially during spring thaw or heavy rain.
Prevention:
- Seal foundation cracks
- Ensure proper grading away from the home
- Keep window wells clear
- Maintain exterior drainage systems
4. Sewer Backups and Sump Pump Failure
Basements are especially vulnerable during heavy rainfall or municipal system overload.
Prevention:
- Install and maintain a sump pump
- Add a backwater valve
- Keep floor drains and storm sewer grates clear of obstructions.
- Avoid pouring grease or oils down drains
- Waterproof basement surfaces where possible
What Flood Insurance Covers in Ontario
Standard home insurance policies generally exclude flood-related damage unless endorsements are added.
Overland Water Coverage may include:
- Rainwater entering through doors or windows
- Surface water entering through foundation cracks
- Overflow from nearby bodies of water
- Water entering low-level entry points
Sewer Backup Coverage may include:
- Water entering through drains or toilets
- Sump pump failure
- Municipal sewer system overload
Typically not covered:
- Gradual leaks or wear and tear
- Poor maintenance-related damage
- Saltwater flooding
How Much Does Flood Insurance Cost in Ontario?
Adding flood insurance coverage depends on your risk level. Your coverage price is based on the risk of overland water flooding in your area. This coverage will cost less if you’re in a low-risk area. Sometimes, you can add overland protection at no cost if you have sewer back-up protection. However, you must already carry Sewer Backup coverage to be eligible to add Overland Water Coverage. It is not a stand-alone coverage.
Flood insurance pricing depends on risk level and location:
| Risk Level | Estimated Monthly Cost |
|---|---|
| Low-risk area | $15–$35/month |
| Moderate-risk area | $35–$80/month |
| High-risk area | $100+/month |
Homes near water or in flood-prone zones typically pay higher premiums.
Raise large appliances, electrical panels, the furnace, and the water heater off the basement floor on wood or cement blocks.
What Water Damage Is Covered by Standard Home Insurance?
| Typically Covered | Typically Not Covered |
|---|---|
| Sudden burst pipes | Frozen pipes if home is left unheated |
| Appliance leaks | Gradual leaks or maintenance issues |
| Water main breaks | Sewer backup or overland flooding |
| Wind-driven rain damage | Long-term deterioration |
More Tips to Reduce Risk
- Maintain a home inspection routine
- Keep valuables off basement floors
- Install sump pumps and backwater valves
- Store important items digitally
- Bundle water protection coverage where possible
- Review your policy annually
Frequently Asked Questions About Flood Insurance in Ontario
What does flood insurance cost in Ontario?
Flood insurance in Ontario typically costs between $15 and $100+ per month, depending on your home’s risk level, location, and coverage limits.
- Low-risk areas: ~$15–$35/month
- Moderate-risk areas: ~$35–$80/month
- High-risk areas: $100+/month or more
Homes near rivers, lakes, or low-lying areas generally pay higher premiums.
Is flood insurance included in standard home insurance?
No. Most standard home insurance policies in Ontario do not include overland flooding or sewer backup coverage.
These protections must usually be added as optional endorsements to your policy.
How do I get flood insurance in Ontario?
Flood coverage is not purchased separately—it is typically added to your home insurance policy as endorsements such as:
- Overland Water Coverage
- Sewer Backup Coverage
To get coverage, you can:
- Contact your current insurance provider
- Work with a licensed insurance broker
- Review your risk level based on your location
A broker can help determine what coverage is available for your specific home.
What is the difference between overland water and sewer backup coverage?
- Overland water coverage protects against water entering your home from rain, snowmelt, or overflowing bodies of water
- Sewer backup coverage protects against water entering through drains due to system overload or blockage
Both are commonly excluded from standard policies unless added.
Do I need flood insurance if I don’t live near water?
Yes — flooding can still occur far from rivers or lakes.
In Ontario, common causes include:
- Heavy rainfall
- Snowmelt
- Sewer system overload
- Basement drainage issues
Even urban homes can experience significant water damage.
Can I save money by bundling flood coverage?
Yes. Many insurers offer savings when you bundle sewer backup and overland water coverage together for added protection. If you have an all-risk or comprehensive policy, there is coverage for all water damage, except those your insurer will specifically mention.
Adding flood protection will increase your overall premium slightly, but it can significantly reduce your financial risk in the event of a claim, which can cost tens of thousands of dollars or more.
What should I do if I’m not sure I have flood coverage?
Check your policy or contact your insurance provider. A broker can also review your policy and confirm whether you currently have:
- Sewer backup coverage
- Overland water protection
- Any exclusions that apply to your home
Final Thoughts
With three coasts, nearly 900,000 lakes, and over 8,500 rivers, Canada faces a high risk of flooding—its most frequent and costly natural disaster. Water damage is not only common but expensive. The average insurance claim for water damage is approximately $13,000, with total repair costs often ranging from $3,000 to over $10,000—and significantly higher in severe flooding situations.”—and significantly higher in severe flooding situations.
Understanding your coverage and adding appropriate endorsements can significantly reduce financial risk and provide peace of mind. If you’re unsure whether your home is properly protected, a licensed insurance broker can help review your policy and identify coverage gaps.
Water damage is now the most common and costly home Read more
