Overland flood insurance
Overland flood insurance provides financial protection when overland flooding damages your home.
On this page
Who should take action
- Homeowners
- Renters
- Landlords
What it is
Water damage is a basic coverage on home and tenant insurance policies, and may cover incidents such as burst pipes or hot water tank leaks. However, coverage for flooding is not typically included in a standard policy.
Flooding of your home can happen in different ways, and insurance companies define and cover each type differently. This means there's not necessarily one type of flood insurance. Instead, there are policy endorsements, or add-ons, that can be requested from your insurance broker or insurance company to enhance your coverage for flood damages, depending on your eligibility.
No matter how your insurance provider defines and covers various flood types, it's important to understand your coverage and your coverage needs for flooding. This might include coverage for:
- overland flooding
- sewer backup
- sump pump failure
- storm surge and tidal waves
- This may be considered as part of overland flood coverage by some insurance companies
Overland flood insurance, which covers damages caused by excessive rainfall or snowmelt, overflowing lakes, rivers and other freshwater sources entering the home, is what many people think of when referring to flood insurance.
Adding overland flood insurance to your home or tenant insurance helps protect against a wider range of financial flood risks. Availability varies across insurance companies and depends on your flood risk as assessed by your insurance provider.
Benefits
In Canada, floods are the most common and costly natural hazard, accounting for about half of all home insurance claims. The average cost to repair a flooded basement is over $40,000.
Overland flood insurance acts as a financial safety net for damage caused by overland flooding.
This type of coverage can provide financial support for overland flood damage repairs, replacements, clean-up and additional living expenses while your home is being repaired. This will help you recover quicker and alleviate stress.
What's involved
Everyone should be aware of their insurance policy's coverage for different types of flooding.
Talk to an insurance professional to understand the specifics of what's covered in your insurance policy, and what additional coverage is available to financially protect your home from floods.
Details of your insurance coverage are typically discussed:
- Before purchasing your home, condominium or tenant insurance
- Before your annual policy renewal
- Insurance policies typically renew every year from the original date of purchase
- After a claim
You may be able to update your policy at any point during its term.
Renters: Keep in mind, your landlord's insurance will not cover damages to your personal property caused by overland flooding. Talk to an insurance professional about your coverage needs, and learn more about being a flood ready renter.
To make your flood insurance claim process easier:
- Know how to contact your insurance professional or provider after your home or property is affected by overland flooding
- Create a back-up physical or digital copy of your policy
- Create and maintain an inventory list of valuable items, including proof of ownership and their cost
- Keep physical or digital copies of the receipts, plus photos of the items
- Keep insurance documents, contact information and your inventory list in a secure and safe place that is fire and water resistant
- Ensure that all household members know the location of these documents and consider storing them in your emergency kit
- For more advice, visit making an insurance claim