Do I need comprehensive water coverage?
8 minute read Published on Nov 20, 2025 by BrokerLink Communications
Water damage isn't just an inconvenience saved for rainy days; it's a rising risk that Canadian homeowners are facing now more than ever. From springtime thaw floods to basement leaks and sewer backups, the cost of repairs related to water damage can be extensive. For example, Canada experienced a record-breaking $8.5 billion in insured losses from severe weather damages in 2024 alone, a lot of which was related to water.
These instances are no longer a rare occurrence. In fact, 1 in 10 Canadian homeowners has dealt with basement flooding, and with aging plumbing systems and more frequent extreme weather events, the risk of damage is becoming more of a pressing issue.
When it comes to your home insurance coverage, you may have some questions about whether basic policies are enough to protect your home and belongings, or whether comprehensive coverage is needed.
If you live in an area prone to heavy rain throughout the year, have a finished basement, or live in an older home, the answer is almost always yes. Standard home insurance policies don’t cover most types of water damage, which is why many Canadians opt for additional endorsements to ensure they're fully protected.
Is Water damage covered by home insurance?
The short answer is yes, but only in some situations. In the eyes of insurance companies, not all water damage is treated equally, and understanding the difference between covered and excluded events is essential if you want to properly protect your home.
What is covered by your insurance provider
Most home insurance policies in Canada cover water damage that originates from within your home, which is "sudden and accidental." In other words, the damage caused happens without any warning and is not a result of wear and tear or neglect, including:
Burst pipes
If a pipe bursts in your home during the wintertime due to freezing outdoor temperatures and floods your basement, your insurance coverage will likely cover the cost of repairs and replacements of your personal property, as long as you have made necessary steps to prevent the water damage from occurring.
For example, you kept a reasonable temperature in your home, even when you were away from your property.
Leaking dishwasher, hot water tank, or washing machines
If any of the appliances throughout your home malfunction, causing accidental water damage to your interior, you can claim the damages with your provider as long as the malfunction didn't arise due to a lack of maintenance or general wear and tear.
What standard home insurance policies don't cover
Although home insurance policies do an okay job at covering water damage in some situations, other damages that are gradual, preventable, or originate outside the home are not covered by standard policies:
Sewer backups
Sewer backups occur when sewage water enters your home through your drains or toilets following periods of heavy rainfall. Unless you have added sewer backup coverage to your home insurance plan, you will not be able to claim damages.
Overland water damage
Overland water damage is caused when fresh waterways flood into homes following heavy rainfall, snow melt, and storm surges. Given that these water-related incidents originate from outside of your home, you'll need to add flood insurance to your standard plan to ensure you're covered.
Groundwater seepage
Groundwater seepage, where water enters through cracks in the foundation, and leaks caused by poor maintenance, like an old roof or corroded pipes, do not qualify for compensation as these are the homeowner’s responsibility to prevent through regular maintenance.
Ice damming
If in the wintertime ice damming occurs on the roof of your home following a period of freezing temperatures and heavy snowfall, any water-related damage won't be covered by home insurance. The Insurance Bureau of Canada states that ice damming is preventable and considered a maintenance issue by most providers, but it can depend on who you have your coverage with.
Vacant homes
If water damage occurs while your home is vacant for 30 days or more, especially if you failed to notify your insurance provider beforehand, your claim is likely to be denied. Anytime your home is empty for 30 consecutive days or more, you must notify our home insurance company, as this increases your risk as a policyholder.
How additional coverage can ensure you're fully protected
With flood-related claims reaching $4.1 billion in Canada in 2024, most insurance companies recommend that homeowners purchase additional coverage to supplement their standard home insurance policies:
Sewer backup coverage
Sewer backup insurance is designed to protect policyholders from the potential damage caused by a sewer backup due to municipal plumbing overloads. Given how extensive such damage can be, this type of flood insurance is vital, especially if you live in an older home with outdated plumbing.
Overland water insurance (Flood Insurance)
Flood insurance is another type of flood coverage that may be worthwhile to homeowners. It covers another common cause of flooding: groundwater. Specifically, when you add overland water coverage to your policy, your insurance company may reimburse you if your house suffers water damage that is caused by a nearby lake/river (natural or man-made), tidal waves, overflow, heavy rain, or rapid snow melt.
Groundwater/Foundation coverage
Groundwater or foundation coverage is an optional add-on that protects your property from water entering through basement walls, basement windows, foundation cracks, or flooring, particularly during periods of prolonged rainfall or snowmelt. If your property has a finished basement or is located in an area with high water table levels, this optional coverage is recommended.
Prevent water damage: A step-by-step
Your home is one of the biggest investments you may make in your lifetime, which is why doing everything you can to prevent water damage from occurring is essential, especially with the cost of repairing a water-damaged basement rising by roughly 20% between 2019 and 2024. Here's what you need to do:
1. Inspect your roof and gutters
It is not uncommon for water to enter the home through a worn roof or one with missing shingles. We recommend inspecting your roof regularly or having someone else do it for you. This is especially important before and after the winter, as issues like snow load and ice damming can cause extensive damage to rooftops, which in turn leads to water damage in your home.
Remember that gutter maintenance is year-round, not just in the spring or fall. If you are not up to the task, we recommend hiring someone to clean your gutters for you. Dirty gutters, especially those clogged or blocked by leaves, debris, weeds, twigs, snow, ice, etc., can result in water damage by preventing them from doing their job of diverting water away from your home.
2. Install a backwater valve
Backwater valves attach to your sewage line in your home to prevent backup from entering your basement when wastewater levels rise, which is recommended in addition to purchasing sewer backup insurance.
3. Test your sump pump
Keeping your sump pump in good working condition is essential to preventing flood damage in your basement during periods of heavy rainfall. Sump pumps are designed to divert water away from your property as groundwater levels rise beyond a certain threshold. When your sump pump isn't working, this water will have nowhere else to go but your home.
4. Store valuables off the floor in basements
As basements are especially prone to flooding, we recommend proactively storing any important or high-value items in your home on a higher level. If you have musical instruments, expensive jewellery, vintage wine, or expensive artwork, we suggest keeping them in a safe place on the main or upper floor of your home, preferably somewhere off the floor.
5. Know where your water shut-off valve is located
Know where the water supply shut-off valve in your home is located and how to use it. Being able to act quickly when you notice water damage is crucial to prevent further damage.
How to file a water damage claim with your insurance company
Dealing with water damage can be overwhelming, but knowing how to file a claim can make the process faster, smoother, and less stressful. Here’s a step-by-step guide to help you navigate the aftermath of water damage in your home:
1. Review your water damage coverage
Before contacting your provider, read over your home insurance policies to confirm you have coverage for the specific type of water damage that has occurred. If you're having difficulties understanding your insurance coverage documents, reach out to BrokerLink to have one of our brokers explain your insurance policies before you contact your insurer.
2. Contact your insurance provider
Once you've confirmed that your insurance policies cover the specific water damage you've experienced, go ahead and contact your insurance provider immediately to file an insurance claim.
3. Document the damages
Take clear photos and videos of the damage to your property and belongings before starting cleanup. Keep records of everything affected, including item values, purchase dates, and receipts if you have them available.
4. Arrange for an adjuster visit
Your insurance provider will assign a claims adjuster to assess the water damage. They’ll typically visit your home, document the extent of your losses, and determine what’s covered under your home insurance plan.
5. Work with approved contractors for repairs
Once your adjuster has approved your insurance claim, they'll provide you with a list of approved contractors, who will repair your home. While most water damage claims are processed within a few weeks, depending on severity, providing enough evidence and maintaining open lines of communication with your adjuster can help the process run smoothly and avoid delays.
Is flood damage different from water damage?
Yes, in insurance terms, flood damage typically refers to overland water that enters from outside of your home. Water damage usually refers to events that happen within your home, like a burst pipe or a leak from your washing machine.
Can I prevent my premiums from increasing after a water damage claim?
Filing a claim for water damage may increase your premiums the next time you're up for a renewal. However, you can reduce your risk profile by installing a sump pump, backwater valve, water leak sensors, and taking other preventive steps to prevent damage.
Does condo insurance cover water damage?
Yes, but it depends on your policy and the source of the damage. Condo insurance typically covers damage to your unit’s interior, while your condo corporation’s insurance covers common areas in your condo building. It’s important to check your policy limits and add endorsements if needed.
Protect your home with water damage coverage from BrokerLink
Water damage claims are on the rise in Canada. While standard policies provide some lines of defence against damage, optional endorsements provide further peace of mind when you discover the first signs of water damage in your home.
Whether you have general inquiries about water damage coverage or questions about your current coverage, the experienced Brokers from BrokerLink have got you covered. In the market for home insurance? We can customize your plan based on your needs and budget, including policies for:
Protect your home from water damage with BrokerLink. Contact us today!
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