Surface water damage insurance

Surface water damage insurance
 

 
While traditional home insurance policies may provide insurance for water-related risks, such as broken pipes and sewer backups, there has been no offer of protection in Canada until now. to cover damage caused by so-called “surface” water that has entered a dwelling. This can include the accumulation of water from heavy rains, spring runoff, or the overflow of rivers and inland water bodies.

According to a Statistics Canada report published in 2014, average temperatures in Canada have increased by 1.6 ° C for 67 years. If we are to believe the resolutions adopted at the 21st Conference of the Parties (COP21) in Paris, France, global temperatures will rise by at least another 1.5 ° C, and likely by 2 ° C or more. 'by 2100 due to the effects of global warming. Even the lowest value of these climate change predictions will likely mean wetter, more unpredictable, or even extreme, weather conditions across the country - which will intensify over time as more carbon sinks. 'will accumulate in the atmosphere.

The 2013 floods in southern Alberta highlighted the shortcomings of traditional insurance policies when it comes to coverage for damage to homes caused by surface water. In the end, the cost of the flooding in Alberta alone was about $ 2.2 billion, and some 100,000 households were affected. Other recent floods such as the 2013 flood in Toronto, Ontario, which resulted in $ 940 million in damage, and the 2014 flood in southern Manitoba which resulted in $ 1 billion in damage , have only reinforced the argument in favor of covering damage caused by surface water. It's not hard to imagine the hardships you would face if you were to experience a loss and no applicable coverage was available - water damage can be catastrophic. To address this risk, Aviva Canada and RSA now offer protection against damage caused by surface water in all provinces except Quebec. Intact / Novex is offering surface water damage insurance as of February 2016 and will offer renewal of this insurance as of April.

Water damage insurance offered

Water damage insurance is usually broken down into three parts by most insurers:

Basic Warranty - Usually provides protection against unforeseen incidents inside the home, such as broken pipes, overflowing tubs, or broken or leaking aquariums. Basic water damage insurance is usually included in your home insurance policy, although it's important to note that broken pipe coverage may be conditional on your home being damaged. monitoring or that the water supply is turned off and the hoses emptied if you will be away for more than a day.
Sewer Back-Up Guarantee - Usually provides protection against water damage caused by back-up sewers or drains leading to sewers. In this case, the warranty restriction is that the water must not come from a surface source. This protection is usually offered to home policyholders at an additional premium.
Surface Water Damage Insurance - Usually provides coverage for loss or damage caused by water entering a home as a result of a sudden build-up of water resulting from heavy rains, spring runoff or water overflow. lakes or rivers and is generally available to the majority of homeowners, condominium owners and renters. Premium rates for this warranty vary depending on the risk profile of a particular home, but could be considered affordable for many homes. The exception to this rule would be if you live in a known flood zone, in which case insurance premium rates would be higher accordingly.
Conclusion

For most people, their home is their most valuable asset and it only makes sense that homeowners take reasonable precautions to protect their investment when possible.

Historically, major flooding accounts for almost 40% of all natural disasters in Canada. According to more recent events and statistical trends