Water Damage Claims Are Now More Common Than Fire Claims in Ontario – Is Your Home Properly Protected?

For decades, fire was considered the greatest threat to a home. While fire losses can still be devastating, today’s reality is very different.

Water damage has become the leading cause of home insurance claims in Canada, with insurers now paying out more for water-related losses than for fires. In fact, the Insurance Bureau of Canada (IBC) reports that water damage is one of the fastest-growing sources of insurance claims, driven by heavier rainfall, aging infrastructure, sewer backups, and more frequent extreme weather events.

If it’s been a while since you’ve r

eviewed your home insurance policy, now is the perfect time to make sure your water coverage matches today’s risks.

Why Are Water Claims Increasing?

Ontario has experienced a significant increase in severe weather over the past several years. Intense rainstorms, flash flooding, overwhelmed municipal sewer systems, frozen pipes, and sump pump failures are becoming much more common.

According to the Insurance Bureau of Canada:

• Severe weather is causing record-breaking insured losses across Canada.
• Water damage is now one of the most common reasons homeowners submit insurance claims.
• Flooding events that were once considered rare are occurring much more frequently.

Water damage can spread quickly throughout a home, damaging:

• Flooring
• Drywall
• Electrical systems
• Furniture
• Appliances
• Finished basements
• Personal belongings

Even a few inches of water in a finished basement can result in repairs costing tens of thousands of dollars.

Not All Water Damage Is Automatically Covered

One of the biggest misconceptions homeowners have is believing that all water damage is included with their home insurance policy.

Unfortunately, that’s not always the case.

Many types of water protection are optional coverages that must be added to your policy.

Depending on your insurer, these may include:

Sewer Backup Coverage

Protects your home if water backs up through drains or the municipal sewer system.

Overland Water (Flood) Coverage

Protects against water entering your home from heavy rainfall, overflowing rivers, melting snow, or surface water.

Groundwater or Seepage Coverage

Some insurers offer optional protection for groundwater entering through foundations or basement walls.

Sump Pump Failure

Some policies include coverage when a sump pump unexpectedly fails, while others require additional endorsements.

Coverage options and limits vary between insurance companies and policies, so it’s important to understand exactly what protection you have.

Is Your Coverage Limit High Enough?

Having water coverage is only part of the equation.

Many homeowners are surprised to learn their policy may have a specific dollar limit for sewer backup or overland water damage.

For example, a policy may provide:

• $10,000
• $25,000
• $50,000
• $100,000
• Or full building limits

While lower limits may have been adequate years ago, today’s construction costs have increased dramatically. Restoring a finished basement—including flooring, drywall, cabinetry, insulation, electrical work, contents, and mould remediation—can easily exceed lower coverage limits.

Reviewing these limits regularly helps ensure your coverage keeps pace with today’s rebuilding costs.

Questions Every Homeowner Should Ask

A quick insurance review can provide peace of mind. Consider asking your broker:

• Do I have sewer backup coverage?
• Am I covered for overland flooding?
• What is my water damage coverage limit?
• Is my sump pump covered if it fails?
• Are my finished basement and personal belongings adequately insured?
• Has my policy been updated to reflect today’s water risks?

These simple questions can help avoid unexpected surprises after a loss.

We’re Here to Help

At Haldimand Insurance Brokers, we believe understanding your coverage is just as important as having it.

If you’re unsure what water protection your policy includes—or whether your coverage limits are sufficient—we’d be happy to review your policy with you.

A quick conversation today could help prevent a costly surprise tomorrow.

Contact our team for a complimentary policy review and let’s make sure your home is protected against one of Ontario’s fastest-growing insurance risks.