Whether it comes from drains or cracks in the foundation, water can seep in various ways and cause serious damage! That’s why it’s essential to consider this when insuring your home.

And for good reason! With rising temperatures, heavy rainfall, and aging infrastructure, water damage has become the leading cause of home insurance claims in Quebec. In 2023, 50% of claims were water-related.

These figures remind us of the importance of having good home insurance coverage to deal with water damage. Assurance Multi-Risques shares its expertise with you so that you can protect your home properly!

Is Water Damage Covered by My Home Insurance?

Did you know that your home insurance does not cover all water damage? This is true even if you have comprehensive coverage.

Basic coverage generally only covers damage caused by water coming from inside the home. This can include overflowing appliances (washing machines, toilets, water heaters, dishwashers, etc.) or broken water pipes.

For damage caused by external factors, you will need to add optional endorsements to your policy. These endorsements fall into three main categories:

Groundwater and sewer backup: This coverage protects against sudden and accidental infiltration of groundwater or surface water, as well as sewer and French drain backups or overflows.
Above-ground water: This endorsement covers sudden and accidental infiltration of rain or snow through the roof, walls, windows, doors, or foundations. It also covers leaks or overflows from gutters and downspouts.
Overflowing waterways: This protection covers the same risks as the “Groundwater and Sewers” endorsement, with the addition of damage caused by rising water levels, such as flooding following the overflowing of a river or lake. It is subject to certain conditions and is not offered by all insurers.

At-risk Areas

The Insurance Bureau of Canada has seen an increase in water damage at the provincial and national levels, partly due to climate change and extreme weather events. This trend is expected to continue in the coming years.

According to Thurell Deledicque, a personal property and casualty insurance broker at AMR, homeowners located in a risk area could see their insurance costs increase. They could even be denied coverage. It is therefore essential to check with your insurer to see if you are covered for this type of loss.

The Importance of Accurately Assessing Your Needs

When applying for home insurance, several factors are taken into account to assess your coverage needs. They also help determine the amount of your premium:

The condition of the basement: Is it finished? The percentage of finishing has a significant impact on the amount of coverage.
Preventive installations: The presence of submersible pumps and check valves has an impact on the amount of your insurance premium.
The structure: The type of foundation and the presence of French drains are also checked.
The surface area: The surface area of the basement and the house is requested to ensure that the coverage is sufficient.

Finally, always check the amount of your coverage in the event of a claim. Insufficient insurance coverage could cost you dearly!

At Assurances Multi-Risques, most of our clients have minimum coverage of $50,000. However, some insurers offer lower amounts, depending on the geographic location.

Unfortunately, many people are insured for lower amounts. This could prove insufficient, especially if decontamination of the premises is required. Be sure to choose coverage that covers these costs!

Prevention First and Foremost

With the arrival of warmer temperatures, simple steps can help prevent flooding and water damage:

Review your insurance policy and check that you have all the necessary coverage.
Clean your gutters and downspouts, and make sure they drain water at least 2 or 3 meters away from your foundation.
Test your sump pump and remove debris from floor drains to ensure free flow.
Contact a professional as soon as signs of failure appear to prevent the situation from worsening.
If you are a tenant, notify your landlord promptly if there is a problem.

Despite the growing risk of flooding for residential properties, a recent article in Le Devoir highlighted a worrying discrepancy: although 34% of Canadians are concerned about the risk of flooding, more than half (53%) do not plan to take preventive measures.

However, small actions taken early on can make a big difference! Keep this in mind when you start your spring preparations!

In Case of Water Damage

Despite everything, no one is immune to accidents! If water damage occurs, here is an overview of the steps to follow:

Contact your insurer: Call your insurer as soon as possible so that a claims adjuster can handle your claim.
Check the coverage in your policy: The adjuster will verify the validity, coverage, and amounts insured to determine whether the damage is covered.
Urgent work: Act quickly to prevent further damage. Remove water and damaged or contaminated materials. Clean, disinfect, and dry the premises. Remember to keep your receipts.
Repairs: This step involves cleaning and repairing the damaged areas of your home to restore it to its condition before the damage occurred.

If you cannot stay in your home while the repairs are being carried out, your insurance policy may cover the additional living expenses for accommodation or food. For more information on this subject, please read our article on what to do in the event of a sinister.

Your insurance broker: a valuable ally

With the increasing risks associated with climate change, it is more important than ever to fully understand your insurance policy and assess your coverage needs to protect your home in the event of water damage.

If a disaster strikes, the last thing you want to find out is that you’re not covered! Working with an independent insurance broker gives you the assurance that you’re getting the best advice to ensure you’re as well protected as possible.

Trust AMR to keep you dry!

Summary:

Only water damage originating inside the home is generally covered by standard home insurance.

To cover risks related to flooding, sewer backup, or water infiltration through the roof, for example, you must add endorsements to your insurance policy.

Prevention is the best way to protect yourself against water damage. Good maintenance can save you a lot of trouble.

In the event of water damage, contact your insurer quickly and carry out any urgent repairs to prevent the situation from getting worse.