Frequent insurance claims due to water damage: What are the consequences?

Washing machine breakdown, sewer backup, problems with your French drain, water seeping through the roof… These are all misfortunes that can strike without warning when you least expect them. And they all come with their own set of inconveniences!

For the unluckiest among us, misfortune can strike more than once… Claims to the insurer then multiply, and this is not without consequence.

At Assurances Multi-Risques, we frequently receive calls from customers who are having trouble finding home insurance after making several claims for water damage.

We would therefore like to give you a few tips so that you can turn this unpleasant mishap into a story to tell your friends.

Frequency of water damage claims: refusal by your home insurer

In Quebec, a large proportion of home insurance claims are related to water damage, regardless of the cause.

Given the high risk, insurers are more reluctant to insure people who have had one or more water damage incidents. Some insurers may refuse to insure you if you have made several claims for water damage. This may also prevent you from renewing your home insurance.

Why is an insurer refusing to insure me for water damage?

To avoid having to pay another claim in the future and thus limit their financial losses. Such a situation could force them to increase the insurance premiums of their other customers who have not made any claims.

Be aware that for a home insurer, a high frequency of claims means a greater chance of losses. However, some insurers are more tolerant and allow up to three claims before taking action.

Bref, l’assureur à un devoir de diligence envers tous ses assurés. Nous vous recommandons de lire un de nos articles précédents qui vous fera prendre conscience de l’impact d’une réclamation d’assurance.

What can be done to reduce the frequency of water damage claims?

There are solutions available to help you reduce the risk of accidents and claims for water damage. These same solutions can also help you find a new insurer if your policy has been canceled or renewal has been refused.

So, if you have experienced water damage, we have some advice for you.

Maintain continuous insurance coverage

Éviter toute interruption d’assurance puisque cela vous causera encore plus de problèmes. Ne pas avoir d’assurance habitation, même pour un court moment, peut rendre difficile d’en obtenir une nouvelle par la suite. Les assureurs pensent qu’une interruption d’assurance augmente les risques. Cela peut rendre plus compliquée et plus chère la souscription à une nouvelle police.

Addressing the causes of water damage

Be sure to repair the exact cause of your water damage. This will prevent you from having to file a second or third claim, since sooner or later you will have to make the necessary repairs. When water damage occurs, it is essential to identify and correct the underlying cause to avoid repeated claims. For example, if a faulty pipe caused flooding, replace it immediately rather than making a temporary repair.

Maintain your home regularly

Perform necessary maintenance. Regular maintenance of your home is a proactive measure to prevent damage. Water heaters, for example, have a limited lifespan and can leak as they age. Similarly, a roof that is reaching the end of its life can allow water to seep in.

Repair cracks in your home

Have cracks in your building repaired to prevent significant water damage. Small cracks in the foundation, walls, or roof of your home can allow water to seep in. This can cause significant damage over time. These leaks can damage internal structures, promote mold growth, and lead to costly insurance claims.

Increase your home insurance deductible

Increase your deductible on your home insurance policy. Increasing the deductible on your home insurance policy can be an effective strategy for reducing your monthly premiums. A higher deductible means you pay more out of pocket in the event of a claim, but it also shows the insurer that you are willing to share the risk.

Cette approche peut rendre votre profil plus attractif pour les assureurs et vous permettre d’économiser sur les coûts d’assurance à long terme.

Contactez un courtier d’assurance indépendant spécialisé dans les risques hors normes.

Trust an independent insurance broker

Were you born under an unlucky star? Has your floor literally become floating? Has your dishwasher flooded the entire room?

With these repeated accidents, your policy could be canceled and you may have difficulty finding a new insurer.

Admittedly, finding an insurer after a policy cancellation is far from being the most pleasant task. So, to be able to devote all your time to your “post-disaster renovations” and avoid last-minute insurance applications, put your trust in us.

Work with an independent insurance broker who will find the best insurance company for you.