Water Damage: What Are You Covered For?

The increased frequency and severity of severe weather events has prompted the insurance industry to conduct a review of water-related coverages. One of the biggest mistakes a policyholder can make is to presume you are fully covered, only to find out after a claim you are not.

A majority of Insurance carriers require you to purchase Water Damage coverage separately, while only a few insurance carriers will include the coverage automatically.

Here are examples of water damage that are typically covered:
Sewer Backup – damages caused by rupture, backing up or escape of water from a sewer, sump or septic tank.
Water Escape – damage caused by your bath, sink or toilet overflowing, or a pipe or hose in your home breaks.

Here are examples of water damage that would NOT be covered:
Flooding – damages from water that flows into your home from natural sources like lakes, rivers or large amounts of pooled water.
Seepage – damages caused by the slow escape of water or fluid through small openings, cracks or pores in your home.

Speak to your insurance broker to review your water damage coverage and know exactly what you are covered for to avoid unwelcome costs at claims time. Additionally, there are great resources available to educate yourself on how to protect your home or small business against water damage:
From Canadian Underwriter.ca: Ice damming could lead to expensive water damage for homeowners.
From Travelers: Preventing Water Damage.
From RSA: Protect your home or small business from water damage.

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