What are Canada's Top Home Insurance Claims?
Do you know what are the most common home insurance claims in Canada?
The top home insurance claims in Canada generally involve damage caused by weather events, fire, and theft and vandalism.
Western Financial Group, a 100% Canadian company, can help you navigate your car, home, business, and boat insurance during this period of economic uncertainty.
Here are the top 10 claims:
Water Damage
Cause: Water damage is the most frequent home insurance claim in Canada. Water damage can result from a variety of sources, including burst pipes, sewer backups, flooding, or heavy rain.
Home insurance generally covers water damage, but there are limitations. Standard home insurance policies usually cover sudden and accidental water damage from burst pipes, leaks, and appliance malfunctions. Make sure you know how water damage is covered in your home insurance policy.
Examples:
Frozen pipes: In colder climates, pipes can freeze during the winter months, causing them to burst and lead to extensive water damage.
Sewer backup: Heavy rains or blockages can cause sewer water to back up into your home. Home insurance policies don’t automatically cover sewer backups.
Sewer backup coverage is usually coverage that you add to your home insurance policy to cover this kind of damage.
Flooding: While typically not covered by standard policies, flooding due to heavy rain or snowmelt is a common cause of claims and usually requires separate flood insurance.
Overland water coverage includes damage from fresh water flowing above ground, such as overflow from lakes and rivers, torrential rainfall, and rapid snowmelt. It covers instances where water enters your home through ground-level points like doors and windows.
Fire Damage
Cause: Fire is a significant risk to homes, whether from cooking accidents, faulty wiring, or wildfires (especially in certain regions of Canada).
Standard home insurance policies generally cover fire damage, including damage from wildfires. There are some exceptions, such as damage caused by intentional arson or if the fire is related to illegal activities.
Examples:
Cooking fires: These are among the most common causes of residential fires, often occurring in kitchens.
Electrical fires: Faulty wiring or electrical equipment can spark fires, especially in older homes.
Wildfires: Wildfires can damage homes during the summer months, causing significant property loss.
Theft and vandalism
Cause: Break-ins and burglaries can lead to property theft, damage, or both. In some cases, vandalism may also cause damage to the property itself. Damage resulting from theft and vandalism is covered under home insurance policies.
Examples:
Home burglaries: Thieves may break into homes to steal valuables or electronics, causing both financial and emotional loss.
Vandalism: Graffiti or broken windows caused by mischief or intentional damage.
Wind and storm damage
Cause: Severe storms, especially in regions with harsh winters or unpredictable weather, can cause extensive damage to homes. Severe weather is generally covered under your home insurance policy.
Examples:
Roof damage: High winds, hail, and heavy snow can cause roof shingles to come loose or even damage the structural integrity of the roof.
Fallen trees: Windstorms can bring down trees or large branches, which may damage roofs, windows, or vehicles.
Hail: Severe hailstorms can cause damage to roofs, siding, and vehicles.
Liability claims (injury or accident)
Cause: Homeowners can be held responsible if someone is injured on their property, especially if the injury results from neglect or a hazardous condition. Home insurance typically includes third-party liability coverage in case someone is injured on your property.
Examples:
Slip and fall accidents: Someone slipping on icy steps in the winter or tripping over a broken sidewalk.
Dog bites: Homeowners may be liable if their dog bites a visitor or neighbor.
Glass breakage
Cause: Damage to windows, mirrors, and glass doors is a common claim, especially during storms or accidents. It’s usually covered but check your home insurance policy for the details.
Examples:
Shattered windows: Due to severe weather, debris, or accidents.
Vandalism: Breaking of windows by thieves or mischief.
Mould damage
Cause: Mold often results from untreated water damage or persistent moisture in a home. It can cause structural damage and health problems if left unchecked. Standard home insurance policies typically exclude coverage for mould damage because it's often considered as a result of neglect or lack of maintenance. It may be covered if it's a direct result of a covered event like a sudden water leak.
Examples:
Basement leaks: Persistent water leaks can lead to mold growth, particularly in basements or poorly ventilated areas.
Bathroom moisture: Inadequate ventilation in bathrooms can cause mold growth, especially around showers and tubs.
Accidental damage
Cause: This can happen when items in the home are accidentally damaged by the homeowner or someone in the household.
Examples:
Spills on carpets or furniture: Accidents such as spilling paint or coffee on carpets or upholstery. Many home insurance policies include coverage for accidental damage, which can include spills that cause stains or require cleaning but check the details of your policy.
Damaged appliances: A malfunctioning appliance causing harm to your home (e.g., an appliance causing a water leak). Home insurance typically covers appliance damage caused by perils like fire, theft, or natural disasters. It generally doesn't cover damage from wear and tear, mechanical or electrical failure, or manufacturer defects. You may be able to add equipment breakdown coverage to your policy.
Homeowner's equipment breakdown
Cause: Some insurance policies may cover the breakdown of major appliances and systems in the home.
Examples:
HVAC breakdown: Malfunctions in heating or cooling systems, which can be especially problematic in extreme weather.
Appliance failures: Dishwasher, refrigerator, or washing machine breakdowns, which might lead to water damage or property loss.
Earthquake damage
Cause: In areas that are prone to seismic activity, earthquakes can lead to significant structural damage. Note: In Canada, earthquake insurance is not mandatory and is an optional home insurance coverage. Check your province or region for earthquake frequency.
Examples:
Foundation cracking: Shifting due to an earthquake can cause foundation damage, cracks in walls, and other serious structural issues.
In conclusion
To avoid common home insurance claims, keep up with maintenance like checking your plumbing, roof, and electrical systems to prevent water damage and fires. Add a sump pump and backwater valve to help with water issues, and make sure your home has smoke detectors, fire extinguishers, and fire-resistant materials to stay safe from fires.
