Most Ontario homeowners don't realize that their insurance policy treats water damage differently depending on its source. If a pipe bursts, you're likely covered. But, if a rainstorm pushes water through your foundation, you could be facing a hefty repair bill on your own.
Whether your repair is paid for or denied often comes down to one small but critical detail: where the water originated.
Water Damage vs. Flood Damage at a Glance
| Water Damage | Flood Damage | |
|---|---|---|
| Covered by standard policy? | Yes, in most cases | No |
| Requires separate endorsement? | No | Yes |
| Common causes | Burst pipes, appliance leaks, roof damage, accidental overflow | Overland flooding, sewer backup, overflowing rivers or lakes |
| Source of water | Inside the home | Outside the home |
| Average repair cost* | $3,000 to $15,000 | $20,000 to $50,000+ |
*Costs may vary depending on severity of damage.
Understanding the Difference
Standard home insurance policies typically cover internal water damage, such as a burst pipe or an overflowing dishwasher. However, water entering your home from the outside requires additional protection.
To ensure you are fully covered, you can add two key endorsements to your policy:
- Overland Flood Coverage: Protects against water from heavy rainfall, snowmelt, or overflowing lakes and rivers.
- Sewer Backup Coverage: Protects against water backing up through drains, pipes, or toilets when municipal systems are overwhelmed.
Both options are widely available in Ontario and can be added to your existing policy for a relatively modest increase in premium.
Which Coverage Do You Need?
If you are a homeowner in Ontario, the answer is simple: you likely need both.
Water damage is now the leading cause of property claims in the province, and a standard policy alone may leave you exposed to the most costly risks. With repair costs often reaching tens of thousands of dollars, understanding your coverage today can help prevent significant financial loss.
Let us help you review your coverage. Contact us at 1-855-482-5001 or info@myinsurancebroker.com to ensure you have the right protection in place.