Flooding: The Most Expensive Source of Insurance Claims
Flooding now surpasses fire damage claims. The average claim cost is $43,000, resulting in $1.7 annually in Canada. Flooding which originates within a dwelling is often caused by the rupture of a pipe or appliance such as a dishwasher or hot water tank. This is usually part of the basic policy. Another type, sewer back up, is more common in areas where the sanitary and storm sewers share one pipe. Sump pump failure/malfunction is also part of this coverage. Limited sewer backup may be included in your policy, but higher limits of coverage must be purchased.
Overland flooding occurs when surface water comes in through foundations, walls, closed windows and doors. Such flooding is currently being experienced in certain regions of New Brunswick, Quebec, and Ontario, due to rivers in those areas bursting their banks. At least 20% of the population is susceptible to overland flooding. That number increases as more extreme weather events become more frequent. Not all insurers provide coverage. It began to be offered after the catastrophic Calgary flood of 2013, which resulted in $4 billion in insured losses.
Overland water coverage, if available, must be added by endorsement to your policy.