What accidental damage home insurance covers in Canada

Even if you do your best to prevent home insurance claims throughout the year, accidents can still happen, which is where accidental damage insurance comes into play. So, what is accidental coverage? How does it work? And is it included in standard policies? We cover all this information and more below:

Accidental damage defined

Accidental damage is a singular incident that may cause damage to the physical structure of your home or your personal belongings. For example, starting an accidental fire in your home that damages your kitchen, slipping in your hallway, denting your wall, dropping paint on your carpet, and other scenarios like these. What accidental damage isn't is damage or losses that occur as a result of intentional actions. For example, punching a hole in the wall.

Does standard home insurance coverage include accidental damage insurance?

Whether or not home insurance covers accidental damage depends on your home insurance provider and the specific terms of your policy. While some home insurance offers policyholders financial protection against accidental damage automatically, others don't.

Note: You may have the option to add this type of coverage as an extra for an extra cost.

What does accidental damage cover?

If, by chance, your home insurance covers accidental damage, you may have some questions about what your policy documents would specifically cover. While your coverage may vary, here are some general ideas about what it could include:

• Accidental damage to your bathtubs, showers, toilets, or sinks.
• Accidental damage to your windows and doors.
• Damage to your plumbing or sewer system.
• Broken locks or keys.
• An accidental fire causes damage to your home.
• It may cover mould if it develops as a result of your plumbing system.

Remember, for your insurance company to cover these types of damages, the accidental damage insurance would have had to occur as a result of a covered peril listed in your policy documents. Additionally, accidental damage to your personal belongings would also be covered.

Tip: Always check your individual policy and speak with your broker—coverage varies by provider and plan.

What else is covered by home insurance?

Beyond certain accidental damages that may occur to your home or personal belongings, homeowners can also anticipate the following policies to be included in their standard home insurance plan:

Dwelling insurance

Dwelling insurance covers damage to the physical structure of your home from various covered perils, including the following:

• Smoke and fire damage.
• Theft and vandalism.
• Car/aircraft impact.
• Explosion.
• Falling objects due to extreme weather or natural disasters.
• Weather damage, such as high winds and hail.

Liability coverage

Liability coverage protects homeowners in the event someone suffers a bodily injury or property damage while at their home. Should a lawsuit be filed against them, this home insurance policy will cover the cost of medical bills, repairs, replacement costs, funeral expenses, legal fees, and other associated costs accumulated in the settlement of their personal insurance claim, up to their policy limits.

Additional living expenses

Additional living expenses are an insurance policy that kicks into place if your home suffers physical damage by a covered peril that renders it unsafe to live in. During the time you are unable to live in your home, additional living expenses coverage will cover the additional cost of accommodations, meals, and other costs incurred, up to your policy limits.

Personal property coverage

Lastly, personal belongings coverage, or contents insurance, covers your personal belongings like furniture, mobile phones, clothes, and other items you own from damages or losses. Should you file a claim under contents insurance, your insurance company will cover the cost of repairing or replacing your damaged items.

When you purchase home insurance from your insurance company for the first time, you will be asked to produce a home inventory that lists all of your personal belongings and their value. With this, your provider will be able to determine the amount of coverage you need. Note that if you own high-value items, you may be asked to purchase high-value home insurance, as standard insurance policies may not be enough to protect them sufficiently.

Optional home insurance policies

Beyond the policies found in a standard home insurance plan, the option to purchase additional coverage options is available to homeowners who want extra protection and peace of mind, including the following:

Overland flood water damage coverage

Overland water damage coverage can come in handy for homeowners who live near natural bodies of water. Typically, water damage that causes sudden and accidental damage to your home is covered by home insurance. However, overland flooding is not.

With this water damage coverage, any damages or losses caused by flooding in your neighbourhood will be compensated by your insurance company.

Sewer backup coverage

Sewer backup occurs when municipal sewer lines get overwhelmed, typically following periods of heavy rainfall. When this happens, the sewage can back up into your home through your pipes, faucets, and other plumbing fixtures, causing a mess in your home that's not only expensive to repair but also a significant health concern. Those living in older homes with basement suites are especially at risk for this type of damage. With sewer backup insurance, any water damage to your home or personal property will be covered up to your coverage limits.

Identity theft insurance

Identity theft insurance covers policyholders if their home is broken into and their important documents are stolen, such as their driver's licence, banking information, birth certificate, social security number (SIN), and other relevant documents. When a claim is filed, homeowners will be compensated for their losses by ensuring they are able to retrieve or repurchase these documents.

Is accidental damage insurance worth it?

Whether or not it's worth filing a claim for accidental damage that occurred in your house depends on how much the damage will cost to repair or replace, and what your deductible amount is. For example, if your deductible is $500 and the cost to repair your house or items is $2000, it makes sense to file a claim with your insurance company, given that the repairs are significantly more expensive than your deductible.

However, if the repairs or replacements are lower than your deductible, filing a claim may not be worth it, given that you will experience a premium increase the next time you renew your home insurance. So, before contacting your insurance company, assess the extent of the damage and determine whether it is easily repaired on your own or not.

What is not covered by accidental damage insurance?

Now that you have a better idea about what accidental damage covers, we need to go over what it doesn't cover under your home insurance. Here's a closer look:

Pest control

Because pest control is the responsibility of homeowners to deter and maintain, any accidental damage that occurs as a result of vermin or pests will not be covered by your home insurance.

General wear and tear

When it comes to general wear and tear, your home insurance will not cover appliances, septic tanks, windows, swimming pools, carpets, or other aspects of your home. It's important to remember that it's your job to properly maintain your home. As such, any damages or losses that occur as a result of a lack of maintenance or general wear and tear due to old age, like mechanical failure, won't be covered.

DIY work

Thinking about taking on a DIY project in your home? You might want to think again. Accidental damage insurance won't cover damage caused by your own doing. For example, if you're trying to save money by fixing a water pipe in your home yourself, you can put your home at risk of burst pipes. This means that your accidental damage coverage may not provide proper protection.

Portable belongings

Accidental damage caused outside of your home to portable belongings like your cell phone, laptop, or brand-new luxury bag may also not be covered by home insurance. For example, if you drop your phone on the pavement, you won't be able to claim damages under your insurance policy. This can even go as far as jewellery or expensive instruments, it is important to ask for a rider when insuring these items, as they are not stationary items in your home.

Pet-related damages

Lastly, accidental damage caused by pets is also something that is not typically covered by standard home insurance policies. For example, if your dog chews your furniture, rips up the carpet in your house, or causes other unexpected mishaps, you'll likely need to pay out of pocket for any repair or replacements needed.

To ensure you know what is and isn't covered by accidental damage coverage, make sure to read your policy documents and speak to an insurance agent for any clarification you may need. Doing so can help you prevent invalidating your home insurance and being left to pay for repair costs.

How much does home insurance cost?

The average home insurance cost in Canada ranges from $ 1,000 to $ 2,000 per year. That said, how much you pay for your property coverage protection will depend on several factors, such as where your home is located, whether you opt for additional coverage, your previous claims history, your coverage limits, and more.

How can I prevent insurance claims under my home insurance policy?

To prevent insurance claims from occurring, homeowners must take proper care of their property. Here are some maintenance tips you can do to prevent damage and keep your insurance premium from increasing the next time you renew:

Consider a tankless water heater

Tank water heaters are notorious for leaking, especially as they age. To prevent leaks and water damage, consider switching to a tankless water heater if your financial situation allows.

Install a sump pump and backwater valve

To prevent flooding in your home, consider installing a sump pump and backwater valve. These plumbing devices prevent the backflow of water and sewage from entering your home following periods of heavy rainfall. Make sure to speak to a licensed plumber and have the devices installed by a professional. DIY jobs won't work for this task.

Clean your gutters

To prevent water from seeping into your home's foundation, ensure that you clean the gutters and downspouts around your property. This will allow water to drain away from your property following periods of heavy rainfall.

Book maintenance for your HVAC

Prevent home insurance winter claims by scheduling an annual maintenance appointment for your heating system, so you can maintain a comfortable interior throughout the colder months. Cold temperatures can cause your pipes to freeze and burst, causing later damage, leading to water damage and other issues.

Complete Maintenance on your home

Ensure that you complete any home maintenance before something goes wrong, such as ensuring that your roof is upgraded when/if it gets worn or reaches the end of its lifespan, replacing things like your hot water heater or pump and getting your septic pumped every five years.

Holiday protection tips

Going on a holiday? Take note of the following holiday protection tips, so you can vacation with peace of mind:

• Turn off the main water valve in your home before you leave for vacation to prevent the possibility of flooding.
• Have a neighbour check on your home during the time you're away.
• Avoid posting on social media until you are home, as it can notify potential robbers that your home is vacant.

How BrokerLink can help

At BrokerLink, our experienced brokers help Canadians find the right coverage for their needs. Whether it's your first time buying home insurance or you're up for renewal, we've got access to policies from some of Canada's top providers, allowing us to customize your coverage based on your needs and budget, bundle your home and auto policies to help you save, and compare rates and home insurance quotes from different providers. Common insurance plans our team can shop around for include:

• Mobile home insurance
• Tenant and renters insurance
• Condo insurance
• Vacation property insurance

Beyond this, our brokers are also available to help you review your home insurance policy and provide home insurance advice whenever you need it!

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