Water damage insurance claims have been on the rise ever since 1980. In the last 40 years, property and casualty insurance payouts from extreme weather have more than doubled every five to ten years.
These days, flooding in Canada is estimated to cost on average $1.8 billion per year in insured losses.
Insurers across the country say that water damage now represents the principal source of home insurance claims.
This increasing threat of water damage has led some property owners to finding double-digit rate increases in their insurance renewals.
According to IBC (the Insurance Bureau of Canada), these are the top factors that play into the rise of water damage claims:
- Precipitation is more frequent and severe
- More people live in condominiums;
- There’s an increased number of finished basements;
- People spend extended periods of time away from home;
- Busy lives and attitudes towards prevention.
Majority of Canadians Don't Know Their Own Insurance Coverage
According to the IBC, only 37 percent of Canadian homeowners with a ground-level home say they feel confident in their level of knowledge about what is covered and not in their home insurance policy.
Only 45 percent of Canadian homeowners think they have flood insurance and 26 percent don’t know if they do.
Are You Protected Against Overland Water?
To make matters as complicated as possible for the homeowner, insurance companies in Canada will usually make distinctions between different types of water damage and its insurance coverage.
In many cases, protection against overland water, such as water from heavy rainstorms or overflowing lakes and rivers, is often just available as an add-on.
Additionally, insurance companies continually make changes to their policies. In the last few years, some have reduced coverage or raised deductibles for sewer backups, while others have started including coverage against overland water.
For you as a homeowner, prevention and protection begins with finding out exactly what your home is covered against and how the insurance company expects you to react when water threatens your home.
Learning Water Damage Mitigation Can l Help You Save on Insurance Rates
More and more Canadians are starting to discover this water damage mitigation technique that offers an increased protection against extensive and expensive repairs and restoration.
By mitigating a water leak you can:
- Save your home from further destruction
- Stop mould and mildew from festering
- Save money on insurance rates and fees
- Avoid costly and extensive repairs
- Start the restoration and reconstruction phase sooner
- Return your home to its original condition faster
Since water damage is considered the number one threat to your home, this is something every Canadian homeowner should know.