Flood insurance in Canada
Not every type of flood is covered by home insurance. Compare flood insurance quotes from Canada's top home insurance providers.
Matt Hands, Business Director, Insurance
If you're unsure of how your home insurance protects you from water and the many ways it could damage your home, you're putting yourself at risk. Water is the #1 cause of property damage and, for those who can claim it, it’s now the most expensive claims in Canada, surpassing fire. Are you properly protected?
To begin, there are 3 types of home insurance policies offered in Canada - basic, broad, and comprehensive.
Most Canadians choose a comprehensive home insurance policy because the pricing difference between all 3 policies is minimal, so why not get the best? Comprehensive insurance covers the home and its contents from a number of risks, except for: earthquakes, war, and, you guessed it flood damage.
A comprehensive policy will cover your home against water damage from a burst pipe. A burst pipe is the result of pressure build-up in your water supply line due to temperature fluctuations and ageing. But, there are several other examples of water damage beyond a burst pipe. To ensure coverage for all potential instances, you must add other water damage and flood insurance endorsements to your policy.
A basic policy only covers "specified perils." For example, you can buy insurance for a specific event like a lightning strike. But if your home is vandalized, you have no coverage. It makes it the cheapest, albeit the riskiest form of home insurance.
Broad insurance covers the structure of your home, but not its contents (unless you've named them as a peril). For example, if you drop your TV while moving it and it scratches the floor; the floor is covered, but not the TV.
The most inclusive policy covering the building and its contents from all risks, except for some optional coverages such as sewer back-up, earthquakes, or overland water.
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A flood can occur from multiple sources, not just a burst pipe. Heavy rains can cause a city's main drains to back up and flow into your basement. Overflowing rivers and ponds could cause a swell of groundwater that flows into your home. Heavy snowmelt can leak through your foundation causing severe damage. Here are flood insurance options you may want to consider in your given situation.
Flood insurance add-ons to your home insurance policy:
Overland water coverage
Coastal (or storm surge) flood
Most home insurance policies in Canada don't protect you from floods arising from anything other than a burst pipe. However, with the increase in flooding and their intensity, we do see some home insurers adapt. Here is a list of insurance companies and the water protection they offer, either as a standard or an optional endorsement.
See the chart below for more details on available flood insurance coverage:
|Allstate insurance company of Canada||Coverage for burst pipes, leaking appliances, storm waters, spring thaw, accumulated rain, and other types of freshwater flooding with limitations||Limited sewer backup: for damage caused by the escape of water from a sewer, drains, sump pit or septic pump enhanced water damage: including sewer backup, water overflow from freshwater, heavy rain, or groundwater
For QC residents: Groundwater, sewer water, and overflow of a body of water*Available in Alberta, New Brunswick, Nova Scotia, and Ontario
|AMA Insurance||Burst pipes, leaky appliances, wind & hail damage||Enhanced Water Endorsement: includes water damage resulting from certain types of sewer backup, surface water and torrential rain.Enhanced water damage: including sewer backup, water overflow from freshwater, heavy rain, or groundwater
For residents of Alberta
|Aviva Canada||Burst pipes||Sewer backup endorsement: Available across CanadaOverland Water endorsement: For Alberta and Ontario residents that have purchased Sewer Backup|
|BCAA Insurance||Burst pipes||Sewer backup endorsementFlood rider: (freshwater and heavy rain or snowmelt)
For BC residents
|CAA Insurance||Burst pipes||Enhanced water endorsement: Protects against water entering the home from entry points like window and doors*For Ontario residents|
|Commonwealth Mutual||Burst pipes||Water Plus endorsement: Includes flood and sewer backup coverage based on the level of risk*For Ontario residents|
|The Co-operators||Burst pipes||
Water damage from water escape, burst pipes, leaking appliances and water entering the home resulting from an opening caused by an insured peril, freezing within heated portion of the home and ice back up.
Add on: Comprehensive Water provides coverage for loss or damage caused by:
|Desjardins General Insurance||Burst pipes||Groundwater & sewer backup: Depending on risk level, you may need to pay for this protection, sometimes it comes standard.|
|Gore Mutual||Burst pipes||Sewer Backup
WaterEscape Plus (overland water + sewer backup)*For Ontario residents
|The Guarantee Company of North America||Burst pipes & sewer backup||H20+ covers damage from freshwater flooding, groundwater, and surface water|
|Intact Insurance||Burst pipes||Enhanced Water Damage: Sewer Backup, septic system failure, sump pump or drain failure
Overland Water: Sewer backup and overland water
Ground water coverage: (only if you have overland water) covers against sudden water through the foundation from underground water sources
|Optimum General||Burst pipes||Sewer Backup
Overland water: For BC and Ontario only
|Pembridge Insurance||Burst pipes||Sewer Backup
|The Personal Insurance||Burst pipes||Ground Water
Overland water May be included in base policy depending on risk
|RSA Insurance||Burst pipes, leaking appliances||Waterproof coverage Storm and flooding activity not related to saltwater, tsunami, or coastal flood|
|State Farm Canada||Burst pipes||Ground Water
|Unica Insurance||Burst pipes||WATERtight Overland water and sewer backup|
Is your home covered for water and flood damage?
Not all forms of water damage are covered by your basic home insurance policy. Make sure you're fully covered by comparing home insurance quotes with flood insurance today.
Since 1970, provinces and territories work with the federal government to provide some financial assistance to those without flood insurance. The federal government only steps in when the costs far exceed what the province or territory can cover on its own.
Each province and territory has its limits, laws, and regulations on how the money is given out.
Generally, the programs only offer assistance for the essentials and only if you couldn't have insured it in the first place. Residents receive financial compensation but must manage the restoration process themselves before submitting a claim.
Most Canadians still want a better flood assistance program, especially after the 2013 floods in Alberta and Ontario.
Below, we give a high-level overview of each province and territory's financial assistance plan for when disaster strikes:
BC Disaster Financial Assistance (DFA)
Alberta Government Disaster Recovery Program (DRP)
Saskatchewan Provincial Disaster Assistance Program (PDAP)
Manitoba Disaster Financial Assistance program (DFA)
Ontario Disaster Relief Assistance Program (ODRAP)
Quebec Financial Assistance to Disaster Victims program (FADV)
Nova Scotia Disaster Financial Assistance Program (DFA)
New Brunswick Disaster Financial Assistance program (DFA)
Prince Edward Island Disaster Financial Assistance Arrangements program
Newfoundland and Labrador Disaster Financial Assistance Program (NL-DFAP)
Yukon Disaster Financial Assistance Arrangements program
Northwest Territories Disaster Assistance Policy (DAP)
Nunavut Disaster Financial Assistance Arrangements program
A report from the Centre for Research on the Epidemiology of Disasters (CRED) states that the cost of natural disasters rose 14-fold since the 1950s. Insurance can help pay to cover some of the damage, but the displacement from our homes, the claims processes, and the tragedy will live on forever in our minds.
In an ideal world, you’d never submit an insurance claim. Prevention becomes key. With that in mind, we’ve created a flood prevention checklist, for both indoor and outdoor, below.
Water damage prevention inside your home
- Try not to use your basement to store valuable items that could be damaged due to flood.
- If you have no to store those items elsewhere, try to put them up on shelving and in watertight containers.
- Perform a regular (annual) inspection of the plumbing pipes you can see. Check for any corrosion on copper piping (that would appear white or green) as well as leaks by feeling the pipe itself. If you live in a condo, make sure these checks are performed regularly and are on the maintenance calendar.
- Do not pour used oil or grease down drains because once they solidify, they can create a backup.
- Find out where your main water shut off is located. In an emergency, knowing how to shut off the water is essential in keeping damage to a minimum.
- Install leak detectors, and smart water valves that can remotely power down your main water shut off should a leak be detected.
- Install a backflow preventer.
- Install weeping tile and a sump pump.
Water damage prevention outside your home
- Make sure all your eavestroughs are in good working order and that the connected downspouts slope away from the foundation (ideally at least 3 feet).
- If you can't, make sure to use rain barrels to collect overflow water, or build a garden or a french drain to collect the water, preventing it from pooling around the foundation.
- Do not allow snow to accumulate around your foundation. Clear it away immediately from the perimeter, window wells, and entryways.
- Use concrete, mortar, and weather stripping to create a watertight seal wherever water could enter into the building — checking the caulking around all your windows. Water can drip in through a tiny hole of a top floor window and leak down to the main floor, making it hard to know the origin of the water.
- The floor drains just outside your basement entryway, near your foundation, or on the road should be kept clear of leaves and other debris. They must be clear so the water can properly escape.
- Basement windows should have window wells that ideally drain into a weeping tile to avoid water breaking through the window from pressure. The well should be kept clear of leaves and other debris.
- Ensure that grading around the foundation slopes away from the foundation or ensure it flows into a clean floor drain.
- Keep weeping tiles clear and in good repair.
- Ask the city to inspect the main drains for roots if you live in an area with mature trees
- Consider permeable solutions like interlock brick, instead of dense concrete.
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Inland floods can happen anywhere in Canada, and their frequency is increasing due to climate change and a general loss of green space. Green space absorbs and dissipates water much better than concrete. Major urban centres with lots of concrete and asphalt need advanced sewer systems to handle all the water. Without it, or if it's not working correctly, we can have significant flooding.
See the chart below for the year, location, and cost of the major flood damage in Canada.
|1909||Chester, New Brunswick||$149 million|
|1916||Central Ontario||$161 million|
|1920||Southwestern Ontario||$132 million|
|1920||Prince George, British Columbia||$131 million|
|1923||St. John, New Brunswick||$463 million|
|1934||Plaster Rock, New Brunswick||$198 million|
|1936||New Brunswick||$188 million|
|1937||Southern Ontario||$470 million|
|1948||Fraser River, British Columbia||$5,172 million|
|1948||Southern Ontario||$706 million|
|1950||Winnipeg, Manitoba||$4,652 million|
|1954||Southern Ontario||$5,392 million|
|1955||Saskatchewan and Manitoba||$362 million|
|1961||St. John, New Brunswick||$148 million|
|1972||Richelieu River, Quebec||$124 million|
|1974||Maniwaki, QUebec||$103 million|
|1983||Newfoundland & Labrador||$115 million|
|1987||Montreal, Quebec||$147 million|
|1993||Winnipeg, Manitoba||$618 million|
|1995||Southern Alberta||$285 million|
|1996||Montreal, Quebec||$145 million|
|1997||Southern Manitoba||$1,230 million|
|1999||Melita, Manitoba||$163 million|
|2004||Edmonton, Alberta||$303 million|
|2004||Peterborough, Ontario||$129 million|
|2005||Southern Ontario||$1,587 million|
|2005||High River, Alberta||$1,519 million|
|2008||St. John, Newfoundland and Labrador||$12 million|
|2009||Red River, Manitoba||$1,000 million|
|2010||Southern Alberta and Saskatchewan||$956 million|
|2011||Assiniboine River, Manitoba||$1,000 million|
|2012||Ontario and Quebec||$350 million|
|2013||Calgary, Alberta||$5,000 million|
*Data Sourced from Square One
**numbers still not finalized at the time of publication
It didn't stop in 2013. Ottawa, Toronto, St. John, and large areas in Quebec had major flooding in 2017. Quebec alone set up a $350 million dollar fund to help 5,000 homeowners. The Insurance Bureau of Canada (IBC) reports Quebec and Ottawa flood costs added up to $223 million in insured losses.
Insurance Bureau of Canada’s (IBC) Insurers used to pay $500 million annually across the country in severe weather losses. Now they’re seeing an annual average of about a billion dollars. In 2018, the insurance industry paid out almost 2 billion in severe weather losses across the country.
Can renters get flood insurance?
Is flooding covered by home insurance?
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Matt started his professional career at CARPROOF where he honed his marketing and analytical skills for over 3 years. Matt then took his wealth of experience to Ratehub.ca’s Toronto offices, working with insurance providers, agents, and brokers to grow and expand the Insurance business unit. He is a thought leader in the community and a valuable insurance resource to respected publications like the Globe & Mail, Toronto Star, Huffington Post, Yahoo News, and 680 news radio in Toronto.
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