How Does Home Insurance Cover Severe Weather?
Your home has been damaged during a severe weather event. Does your home insurance cover it?
Yes, usually your home insurance does cover a severe weather event, but there are exceptions and limits to your coverage. It’s important to read the details of your home insurance policy and to ask questions about severe weather coverage so that you understand how your home will be protected this situation.
Severe weather events and natural catastrophes in Canada have caused many billions of dollars in insured damages in recent years.
Let’s take a look at specific weather events
1. A wildfire has damaged your home
Wildfires are typically covered by home insurance policies. If your home is damaged by a wildfire, your home insurance typically can help repair or rebuild your home as well as repair or replace damaged personal property. If you need to move out while your home is being repaired, your home insurance should cover additional living expenses for this as well.
If you must leave your home because of a mandatory evacuation order issued by civil authorities, most homeowner's and tenant's insurance policies typically provide coverage for reasonable additional living expenses for a specified period of time.
Most business insurance policies cover wildfire damage, too.
Fire damage to your vehicle is covered under optional comprehensive or all-perils insurance coverage.
2. A flood has damaged your home
Home insurance policies usually do not cover water damage from outside your home, like flooding.
You may be covered if water enters your home when a tree falls on it, but a flood will not be covered by basic home insurance.
Here’s what you can do to provide more protection to your home or business from flooding:
Overland flood coverage is available as an add-on insurance coverage. This type of insurance provides protection for loss or damage related to water entering a property from a sudden accumulation of water. This usually results from heavy rain, spring run-off, or overflow from lakes or rivers. If you don’t have this add-on, you may not be covered.
Sewer backup coverage: This add-on coverage helps protect your home or business against water damage from sewer backups.
This type of add-on insurance typically covers:
- Backup from a sewer, storm drain, or septic tank
- Incidental damage caused by sewer backups, which includes coverage for the cost of professional cleaning or replacing walls, flooring, furniture, and other belongings
- Overflow from a sump pump or other similar equipment.
3. A windstorm has damaged your home or business
Typically, a windstorm is covered under your homeowners’ policy.
Your homeowners’ policy helps pay for repairs or to replace damage to the roof, siding or windows or to repair or replace a shed on your property. Your policy also includes personal property coverage to help repair or replace items that have been damaged by the wind.
If you own a business, your commercial property insurance coverage typically covers a windstorm.
For car owners: Damage from weather-related incidents such as hail, fire, and wind should be covered if you have comprehensive coverage, specified perils or all perils coverage added to your car insurance policy.
4. Hail has damaged your home
Standard home and business insurance policies typically cover damage caused by hail.
If you haven’t opted for comprehensive insurance for your car, you are not covered for hail damage.
5. A tree has fallen on your home
In most cases, your homeowner’s insurance covers fallen trees during a windstorm, ice storm, or tornado. Home insurance will pay for the repairs to your house, and additional living expenses such as hotel and meals while the renovations are being done if you can’t live in your house.
If your neighbor’s tree falls on your house due to fire or a weather-related event like high winds, lightning, ice, or snow, your home insurance should cover the damage.
If you have comprehensive insurance coverage as part of your car insurance policy, if a tree falls on your car it is typically covered.
For business owners, commercial property insurance generally covers damage from a fallen tree.
6. What about earthquake insurance?
Earthquake insurance is optional insurance that can be added to your home or business insurance policy.
This type of insurance covers damage and loss to your home and personal property or business that’s caused by the shaking of the earth. It could also cover additional living expenses, which means that if you had to move out because of an earthquake, your expenses would be covered.
Ask your Western Financial Group insurance expert about how your home, business, or car are covered for extreme weather conditions.
