Ensuring you have proper water coverage on your home insurance policy is important because extreme weather events are becoming more frequent and more severe in Canada.
A recent survey found that many Canadians are underinsured for water damage and, even more concerning, they don’t realize that their standard home insurance policy does not include coverage for flood protection. The survey found that while 54% of Canadians own their home and have insurance on it, nearly one-third mistakenly think their standard home insurance policy includes coverage for flood protection. This coverage, which includes overland flooding, seepage, and sewer backup, is optional and therefore available only at an extra cost.
Nearly one-third of Canadians surveyed mistakenly think their standard home insurance policy includes coverage for flood protection
This could be a huge problem if you experience a significant water damage loss—you may discover your existing coverage is inadequate and you may be denied coverage.
While climate change and extreme weather events have already caused water damage to surpass fire-in-home insurance claims costs in Canada, prospective legislative changes in Ontario may exacerbate residents’ exposure to water loss. The proposed changes to Ontario’s land development legislation, known as the More Homes Built Faster Act (Bill 23), may restrict conservation authorities’ ability to prevent development in flood-prone areas, leading to more people buying homes in areas where lack of adequate water coverage could lead to financial ruin.
Make sure to speak with your insurance broker if you are unsure about your current level of water damage coverage. They can explain what coverage options are available to you, like Unica’s WATERtight™ protection—the simplest, best-in-class, worry-free solution for water damage losses. WATERtight™ a single-product solution that provides coverage for damage caused by Overland Flooding, Ground Water, Surface Water, and Sewer Backup. Click here to find a Unica Insurance Broker near you.