Water is one of those uncontrollable forces that can wreak havoc on property. With various types of flooding, understanding what’s covered under water insurance can be a bit tricky. At Steers Insurance, we're here to simplify things for you. 

Coastal Flooding

Atlantic Canadian houses are vulnerable to coastal flooding caused by waves, tides, and storm surges, common during hurricanes or other severe weather events. Properties closer to oceans with rising water levels are direct targets. Regular home insurance policies usually do not cover any saltwater damage.

What to know: Any damage arising from salt water is not covered by a home insurance policy.

River Flooding

Overflowing rivers lead to significant damage. River flooding is common during heavy rainfalls, thunderstorms, ice jams or combined rainfall and snowmelt. Water usually enters houses through basement windows, cracks or garage doors. This damage is covered under ‘overland water’ coverage, which only pays for damage from any body of freshwater or lake — oceans don’t count.

What to know: This type of damage would be covered under “overland water” coverage.

Groundwater Flooding

Heavy downpours can overwhelm drainage systems, leading to groundwater flooding. This type of flood can persist until the soil absorbs the water, potentially causing serious structural damage. Homes in low-lying areas or with foundation issues are especially vulnerable. Groundwater flooding is covered under groundwater coverage.

What to know: This type of damage would be covered under “groundwater” coverage.

Sewage Flooding

Unexpected heavy rainfalls overfill sewage systems or treatment plants causing sewage floods. These are nightmares as the sewage leaks through pipes or drains and comes up through toilets, sinks or showers. Sewage floods are not only unpleasant because of the foul smell, but hazardous as contact with harmful bacteria and chemicals causes infections. The good news is sewage flooding is covered under ‘sewer backup’ coverage. 

What to know: This type of damage would be under your “sewer backup” coverage.

Flash Flooding

Flash floods can strike with little warning, especially during severe weather events like thunderstorms and hurricanes. The impact depends on factors like rainfall intensity, location, and soil conditions. Both urban and rural areas can be affected.

Keep in mind, most insurance policies have an anti-concurrent causation clause. This means if two different causes contribute to property damage, the insurer will only cover up to the limit of the lower coverage — typically the overland water limit.

Example: You may have $100,000 in sewer backup coverage (SBU) and $50,000 in overland water coverage (OLW). If you submit a claim that has both SBU & OLW, you will be limited to the lower coverage for the entire claim. Or, if it is unclear where the water originated from, and can be considered either OLW or SBU, you are still limited to the lower limit.

Navigating these details can be confusing — and that’s where Steers Insurance comes to the rescue. Our friendly brokers are here to help you understand your policy

Reach out to us to learn more! 

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