Reminder to Check Your Water Damage Coverage
The major floods last month in Ontario in communities such as Brantford, London and Chatham (see coverage here) are a good reminder to all home owners to think about their home insurance and specifically what kind of water damage coverage they have in place. Water damage is the leading cause of home insurance claims, according to a study by the Canadian Institute of Actuaries (see source here).
As we wrote about previously on the blog, overland water protection became a new option previously unavailable to home owners in Ontario. This additional layer of protection in home insurance plans would cover any damage resulting from fresh water flood damage.
As Craig Stewart, Vice-President, Federal Affairs, at the Insurance Bureau of Canada (IBC) said back in January. “Because flooding can cause significant damage in a very short amount of time, it is critically important for consumers to know what their policies cover and whether they have overland flood protection. Consumers should check with their insurance representatives to see what options are available to them.” (See the full media release here).
Overland coverage is optional, so it’s important to find out whether it’s part of your insurance package and if not speak with your broker or insurer to find out more about adding it to your plan. Overland coverage will also differ from provider to provider in terms of the specifics of what is included, so it’s important to get full details rather than make assumptions. Depending on where you live, it might be quite costly to include if your home is in a high risk area for water claims, but it’s still an important discussion to have. Speaking with an insurance professional will help you to better understand your particular situation and what makes sense for you. Water damage is no laughing matter and should take some careful consideration.
~ Click here for more information on water damage from the IBC.
~ Check out this article discussing the recent flooding in Ontario from the Canadian Underwriter – Ontario flooding a “wakeup call” for homeowners to check their policies: IBC
~ From the Chartered Insurance Professional Society: Aon Benfield suggests Brantford flooding will cost “tens of millions”
Image source: FreeDigitalPhotos.net | Stuart Miles