If your house was flooded or damaged by water, would it really be covered by your home insurance policy?

May 31, 2019. If you are like many homeowners, you may believe that any major problem to do with flooding in your home will be covered by your home insurance policy. Surely if your basement is full of water you can call your insurer, so they can help you start dealing with it and cover the cost. After all, that is what you have house insurance for, right?

Although basic home insurance includes water damage, there are many types of flooding and water damage and not all are covered.

Types of flooding and water damage

1. Overland Flooding

Overland flooding is water that comes into your home over dry land. When bodies of water, such as rivers and streams, overflow or there is a heavy rain or thaw, this is considered to be overland flooding.

2. Sewer backup

A sewer backup is when dirty water backs up from the drainage system connected to your house. A sewer backup is a health risk and can cause thousands of dollars worth of damage.

A sewer backup can be caused by:

• The main city sewage line backing up
• Old pipes that need repair
• Tree roots growing through the pipes and causing blockages or collapse of the pipes

3. Sump backup

Heavy rainfall or a power outage can cause the pump in a septic system to stop working, causing it to back up into your basement.

4. Groundwater/seepage

Groundwater damage is when groundwater seeps into your house through the walls or floor.

5. Overflow and discharge water damage

Overflow damage occurs when water overflows from appliances or pipes in your house, for example, your bathtub or washing machine. Discharge is when plumbing or appliances break suddenly and a large amount of water is discharged into your house, for example, if your hot water tank bursts.

6. Above ground water damage

Above ground water damage is damage that is caused by water accumulating on the roof of your house, whether as water or as ice or snow.

What kind of water damage is typically covered by home insurance?

1. Overflow and discharge water damage

Basic home insurance covers overflow and discharge related water damage but if it happens because of insufficient maintenance it will not be covered.

Some examples of what is covered include:

• The rupture of heating, air conditioning, sprinkling, or plumbing systems
• Water discharge from an aquarium, appliance, waterbed, or public water main

What is not covered by basic home insurance

1. Overland flooding

Overland flooding is not covered by basic home insurance but is now available to Canadians who live in flood plains. Coverage does have limits and likely will not be enough to cover all of the damage caused by overland flooding.

2. Above ground water damage

Above ground water damage causes problems such as:

• Ice causing water to back up under roof shingles
• The weight of snow or ice collapsing the roof or creating a hole in it
• Sudden overflow or discharge of water from gutters and eaves

3. Sewer backup

Sewer backup can cause:

• Overflow from a septic tank or sump
• Backup from a storm drain
• Back up from a sewer

4. Water damage from lack of maintenance
   

If the damage could have been prevented with maintenance, it will not be covered.

5. Replacing the pipe or appliance that caused the water damage

Repairing the source of the damage will not be covered. Part of the cost of repairing your damaged floor will probably be covered but the cost of a new hot water tank will not.

6. Groundwater damage/seepage

If water leaks in through the foundation of the house it will be considered a maintenance issue and will not be covered.

7. Water damage caused by structural issues

Problems with the structure of the house that can cause uninsured water damage include:

• Improper grading
• Deterioration of the roof
• Improper installation of eves troughs, roof vents, and downspouts
• Problems with moisture in the house
• Problems caused by weeping tile or clogged drains
• Take the time to read through your policy and understand what is covered
• Talk to your insurer if you live in a flood plain
• Consider adding sewer backup coverage
• Consider adding above ground water damage coverage
• Do not let maintenance issues slide

How can you make sure you have the right water damage coverage?

• Take the time to read through your policy and understand what is covered
• Talk to your insurer if you live in a flood plain
• Consider adding sewer backup coverage
• Consider adding above ground water damage coverage
• Do not let maintenance issues slide