Home insurance claims for water leaks and the resulting damage are filed every day. In fact, they’re the most common type of claim among YouSet users in Quebec and the second most frequent in Ontario, with claims typically ranging from $9,000 to $12,000 on average. Clearly, water damage can cause significant destruction, and worst of all, it can occur in a very short period of time.
Given this, it’s essential to have a home insurance policy that protects against the risk of water leaks and related damage. In this article, we’ll explore what’s typically covered by home insurance in Canada, as well as the most common types of optional coverage that can be added to your policy, so you can make an informed decision about how to best protect your home from water damage.
Does Home Insurance Cover Water Leaks?
Yes, home insurance often covers water leaks, but only if they are unpredictable and unexpected in nature. While it’s not always guaranteed, this can include damage from burst pipes, sudden plumbing failures, appliance malfunctions, and firefighting efforts.
For instance, damage from a pipe that has been slowly leaking for weeks or months due to wear and tear is unlikely to be covered as insurers view this as a maintenance issue. On the other hand, if a pipe suddenly bursts and floods your kitchen or bathroom, that kind of rapid, unexpected damage may fall under your policy’s protection.
Depending on the type of home insurance you have – whether as a homeowner, condo owner, or tenant – what you can claim in the aftermath of a water leak will differ:
Homeowners insurance
- Repairs to the physical structure of your home, including walls, floors, ceilings, and built-in fixtures.
- Replacement or repair of personal belongings damaged by water, such as furniture, electronics, or clothing
- Additional living expenses, like a long-term hotel stay, if your home is deemed uninhabitable
- Personal liability if water leaks cause damage to a neighbor’s property
Condo insurance
- Repairs to your unit’s interior, such as flooring, drywall, and built-in features
- Replacement or repair of personal belongings damaged by water, such as furniture, electronics, or clothing
- Additional living expenses, like a long-term hotel stay, if your home is deemed uninhabitable
- Personal liability if a leak originating in your unit damages neighboring units or common areas
Tenant insurance
- Replacement or repair of personal belongings damaged by water, such as furniture, electronics, or clothing
- Additional living expenses, like a long-term hotel stay, if your home is deemed uninhabitable
- Personal liability if a leak originating in your unit damages neighboring units or common areas
That said, certain types of water leaks and damage require optional coverage, which means you’ll need to specifically add these protections to your policy to qualify for compensation. In Canada, the most common optional water damage coverages include overland water coverage, above-ground water coverage, and sewer backup coverage.
| Types of Water Damage | Covered or not? |
| Damage from accidental leaks or overflow from appliances | Typically covered under standard policies |
| Damage caused by burst pipes or acute plumbing leaks | Typically covered under standard policies |
| Damage caused by firefighting efforts | Typically covered under standard policies |
| Damage caused by freshwater leaking/entering into your home from the ground level | Requires overland coverage |
| Damage caused by water leaking/entering into your home from above | Requires above-ground coverage |
| Damage caused by water leaking/entering into your home from sewers, floor drains, or septic tanks | Requires sewer backup coverage |
| Damage caused by negligence | Not covered |
| Damage caused by wear and tear | Not covered |
| Damage caused by business activities | Not covered |
Should You File a Home Insurance Claim for a Water Leak?
If a water leak has caused significant damage or the repair costs are likely to exceed your deductible, contact your insurer as soon as possible. This will ensure you receive the answers and support you need promptly while also meeting any policy requirements for timely notification. Also, be sure to document the damage by taking photos or videos, as this evidence will be invaluable in supporting your claim and simplifying the process.
For minor damage, especially if the cost of repairs is close to or below your deductible, you might choose to pay out of pocket rather than file a claim. While this can help you avoid a potential increase in your home insurance premium, it will depend on your policy’s terms and your financial situation. Not to mention, some insurers offer a “no-claim discount” or other discounts if you don’t file a claim for minor damage.
Next Steps: Get Insurance That Protects Against Water Leaks for Less
Water leaks are unpredictable and can be a source of worry. While taking preventive measures can help minimize the risk of leaks and their resulting damage, ensuring you have the right insurance for your home, condo, or rental unit is just as important. On top of offering policies from some of the top insurance companies and saving users 29% on average, YouSet also automatically scans and applies exclusive discounts so that you get the best price on insurance.
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