Why is water damage on the rise?

Published On: February 17th, 2017Categories: Personal Insurance

Water damage is becoming more and more a problem for Canadian homeowners. Insurance companies are also altering how they manage the risk involved with certain types of water damage, specifically damages caused by overland water.

Overland water is classified as water entering a property from the sudden accumulation of water from heavy rains, spring run-offs, and overflow from lakes and winters.

Insurance companies have created an add-on option for most homeowners called Overland Water Coverage to protect from this type of damage. Most policies have damage resulting from overland water damage explicitly excluded from the homeowner policy.

water levels on the riseThis coverage is important, and for a few extra dollars, a month can protect against significant loss. A recent article in the Toronto Star tells the story of a family denied a $2 million water damage claim because it was judged to be from water seepage, which was specifically excluded from the policy.

Stories like this highlight the importance of taking the time to talk with your insurance broker about risks your home policy may not be covering you against.

Changing climate conditions is linked to an increase in the occurrence and severity of overland water damage.

Our climate is changing. The average Canadian city is experiencing 20 more days of rain than what occurred in the 1950s.

more rain falling on housesThe severity is also on the rise. The Insurance Bureau of Canada notes that what used to be a 1-in-40 year storm is now more like a 1-in-6 year storm. These storms cause heavier precipitation and flash flooding that is more likely to damage homes and personal belongings.

Depending on your home’s age and the type of basement you have, there are things you can do to help protect your home from damage caused by overland water.

We will go deeper into solutions in the following article. Still, a quick overview includes maintaining or adding a sump pump, checking tree root systems, adding backflow valves, and removing valuables or other expensive items from basement storage.

The first action to take is to read through your insurance policy to see exactly what is covered. For you, that may be as exciting as reading the phone book. Trust us, knowing what you are covered for is an important responsibility that comes with owning your home.

To take the guesswork out and call someone who likes to read insurance policies, your local Bryson Insurance personal insurance specialist! Please take a minute to get in touch with us at 1-800-661-5196 ext: 4, email your dedicated account manager or send a general email to info@brysoninsurance.ca.

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Written by:

Kyle Paterson
Kyle believes that insurance is a tool, when powerfully leveraged best ensures the vision of business leaders and families are realized. Kyle focuses on cyber risk transfer, group benefits, and corporate and individual life insurance solutions.


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