Explaining Water Damage Coverage

Sudden and accidental bursting of pipes and appliances is covered by most home insurance policies under the standard “water damage” coverage section, although there are some limitations.

Water Damage Coverage cartoon concept

A recent statistic showed that nearly 1 in 3 Canadians do not know what type of water coverage their home insurance policy provides. In recent years, rising temperatures, severe weather patterns and storms in our area have been on the rise. It is important that policy holders understand the different coverage options available to them in order to properly protect their homes.

Sudden and accidental bursting of pipes and appliances is covered by most home insurance policies under the standard “water damage” coverage section, although there are some limitations if damage is caused by freezing. Please refer to your policy wordings.

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There are 3 optional water coverages that can be purchased. It is important to note that different insurers offer different coverage options and coverage can be limited or restricted in certain postal code areas. Your broker will be able to explain the best option available for your specific needs.

  • Sewer Backup – When water suddenly and accidentally backs up from a sewer system and flows into the home through a sewer, septic system, sump pump or drain.
  • Overland Water – Generally defined as water entering the home as a result of the overflow of a body of water or when heavy rain or rapid snowmelt enter your home from a point at or above ground surface. (Note: Overland/flood damage caused by “waves” is normally excluded.)
  • Groundwater – Generally defined as water entering your home suddenly and accidentally through a basement wall, foundation or floor.

*Please refer to your policy for more information on the current coverage provided.. If you need further information please contact your broker.

Please note that this summary is intended as an outline only and is necessarily brief. In the event of a loss, all terms, conditions and exclusions of the actual policies will apply. If you do not have a copy of your policy wording, please contact us, and we will send you a full wording.

There are several different types of water damage policies that you may need, depending on your situation.

Explaining Water Damage Coverage available for your home & business

Need to File a Claim?