Everything homeowners need to know to better protect themselves against flooding  

A massive storm on July 16 caused significant flooding in Toronto and other parts of southern Ontario. Toronto’s 2013 flood was one of Canada’s most expensive natural disasters, and early indications suggest that costs from this summer’s storm could match or even exceed that event. 

Overland flooding poses a serious threat to property in Ontario, but many homeowners don’t know how to adequately protect themselves. Let’s explore different coverage options, mitigation devices, and programs available to support Ontarians against flooding.   

Typical home insurance doesn’t cover losses damage due to overland flooding and can be limited for other water-related events, like sewer backup or groundwater rising. However, many insurance providers offer optional coverage that can be purchased for an increased premium that will include coverage for certain flooding events and scenarios.  

Most carriers offer optional coverage for sewer backup and overland flooding, but groundwater coverage is a little scarcer. Below is a table comparison of some of Mitch’s most popular home insurance carriers and the types of optional water damage coverage they offer: 

Sewer backup insurance is one of the more popular water damage insurance options. Water or sewer backup isn’t only disgusting and unsanitary, but it can cause a lot of damage to a home. 

Standard homeowners insurance doesn’t cover sewer backup, which is why it’s handy to have sewer backup insurance added to your policy. It covers backup for any variety of reasons, including aging sewer systems, storm water and sewage pipelines, and sanitary main blockages. 

Overland freshwater flood insurance, or simply overland water insurance, is optional and not included in standard home insurance but can be added as an endorsement. 

It covers damages to your home that results from overland water entering through your roof, doors, and windows. It can cover damage to both the exterior and interior of your home, as well as loss of property due to flooding. 

Groundwater insurance is an optional coverage that, unlike overland water and sewer backup, isn’t always provided by every carrier. It covers groundwater entering your home via its pores or cracks during spring thaw, periods of heavy rain, etc.   

Groundwater insurance will pay for damages caused by water but won’t cover damages to a broken foundation. This is your responsibility to fix as the homeowner. 

Many insurance companies will also offer discounts if a homeowner has installed an approved water loss prevention device. The list of approved devices will vary by insurer, so it helps to talk to a broker about which ones are worth your money. Here is a list of some of the devices that many insurance companies will provide discounts for: 

Even without considering the insurance discount aspect, having mitigation devices can be an excellent way to provide peace of mind for you and your household and perhaps even prevent future damages, saving you from having to make a claim and deal with insurance altogether. 

Note as well: some insurance companies offer funds to offset the cost of mitigation tools for flooding after a claim. Ask your broker about options if you’re interested in purchasing a device. 

Cars can get seriously damaged in floods too, the same way your home can. However, coverage for “flood damage” to your vehicle may only exist if you’ve purchased collision or comprehensive coverage—both optional, and the type of coverage that kicks in depends on how the damage occurred. 

For example, if your car was stored in your garage and flooding damaged it, coverage for its repairs would fall under comprehensive insurance. You would have to pay your deductible in this instance, and your rates could be impacted. 

If you intentionally drive through a flooded area, even if it’s necessary to get to higher ground, any resulting damage would fall under your collision coverage, if it existed. Same as the example above, you would have to pay your deductible and your rates might even be impacted. 

Because many cities in Ontario are vulnerable to climate-fueled floods, some municipalities have taken the initiative to introduce certain programs to make households more resilient.  

Toronto has an existing basement flood protection program, which not only carries out assessments across the city and makes judgements on where to add on additional security measures like underground storage tanks and upsized sewers but also offers subsidies up to $3,400 for homeowners to install anti-flood devices, like sump pumps.  

There’s also the Windsor basement flooding protection subsidy program. Subsidies for eligible work are offered on a first-come, first-served basis. Each property has a maximum lifetime eligible subsidy of $2,800 which includes the installation of a backwater valve, sump pump (both with sump pump overflow and disconnect floor drains or overflow to discharge outside to surface), backwater valve, or disconnect of foundation drains from floor drain.  

Ottawa offers residential grants for sewer backups. Anyone impacted by flooding 3 times or more may be eligible for a grant of up to $1,000 under the Residential Compassionate Grant policy , designed for sewer backups. Resident must have owned or rented property for all 3 of backups, experienced at least $1,000 for most recent backup, proof of all 3 backups within a 15-year period, and paid their property taxes in full.  

These programs exist in addition to insurance, not in place. Check with your own municipality to see what’s available to you.  

Water claims can be serious business, so if you have any further questions about how to protect your home or are looking to supplement your home insurance policy then we have you covered here at Mitch. Give us a call at 1-800-731-2228 today.