WATER’S;ABILITY;TO;SPREAD and soak every accessible nook and cranny makes it difficult
to curtail the damage of a leak or flood once it starts, and difficult to repair afterward. The frequency
and cost of water-related claims have increased in recent years because there are more dishwashers and in-suite washing machines, multiple bathrooms, and more finished basements; all these
increase the cost of repair from water escape. Density is also increasing in many communities,
which means that water escape from one dwelling unit can often affect neighbouring properties.
• Sudden and accidental bursting of plumbing
pipes and appliances is covered by all home
insurance policies. However, damage may not
be covered when freezing causes the escape
• Historically in Canada, home insurance poli-
cies haven’t covered loss or damage caused
by overland flood damage, which occurs
when bodies of water, such as rivers or dams,
overflow onto dry land. This is changing.
Some Canadian insurers are now offering
overland flood coverage for policyholders, but
if you live on a known flood plain, the coverage may not be available.
• Water damage from, for example, a burst pipe
is covered under a homeowners’ policy. Water
that backs up through sewers is covered if
you purchased an optional sewer backup endorsement. Speak to your insurance broker to
understand your options and coverage limits.
• Water damage in a basement due to a sewer