Back-Up on Sewage Damage


A number of insurance companies do not cover sewage damage if it should back-up into your basement. In fact, most insurance companies’ home policies do not automatically include coverage for floods or sewage damage.

Many frustrated homeowners in Calgary learned this difficult fact during the major flood that occurred there in the summer of 2013. TD Insurance had originally denied claims from many policyholders in Calgary but relented weeks later and said they would now cover losses from sewer backups.

Many residents of Toronto also had to deal with flooding and sewage backup in their basements following the huge rainfall that occurred in two hours on July 8th, 2013.After that our brokers heard from some clients of TD Insurance that their coverage for sewage backup is being cancelled or reduced without much notice being given to customers   Apparently the available coverage is being dropped from $100,000 to $15,000, which won’t buy you much of a basement rebuild these days.

Dropped After a Second Claim

Recently a homeowner in Dartmouth who has been insured by Allstate for 15 years has now been told they are dropping his coverage since he has had two claims in the past five years.  This is not an uncommon practice amongst insurers and had he known he says he may not have proceeded with one of the claims. This is where a broker could have made a large difference, since they deal with a number of different insurance companies. Discussing the claim off the record before making it could have better prepared  this homeowner for the future. If it did make sense to put in the claim, a broker could have secured insurance for him with another company for the next couple years in case another claim might happen. Instead his insurer has dropped him completely.

Peace of Mind

The whole purpose of insurance is to protect yourself and your family from possible financial hardship due to unexpected events. Your home is likely the largest investment you may ever make, and while we all want to save money, cutting corners on insurance is taking risks with your most significant asset. Bargain basement prices are always tempting, but they are best avoided when making important purchases such as a parachute, bungee jumping cords, a lifeboat and of course your family’s safety and security.

You Need to Know

As brokers for a number of different insurance companies, you can benefit from our expert advice regardless of which insurer has your policy. Our job is to make sure you know important details about your home insurance policy, such as:

  • Special coverage required for damage from sewer back-ups.
  • The number of claims you have had or will make can affect your premiums or insurability.
  • Your options from different insurers, such as higher limits and better coverage available.

Get expert advice from Mitch Insurance Brokers and make an informed decision when insuring your home and property. Call us at 1-800-731-2228 – we’d be happy to answer any insurance questions you may have.

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