Of all the home insurance claims filed every year, 24% are related to water damage and freezing, making it one of the top threats to home and condo owners alike.
Despite Canadian’s knowledge of this threat, 32% mistakenly assume their standard home insurance policy will protect them in the event of water damage – despite that it might not because it’s a type of coverage you have to opt into. With an average claim payout for water damage of $12,514, this is a potentially costly assumption you do not want to make.
To help ensure you get the coverage you intend to have against water damage, this article will cover the basics of overland water coverage. Once you know what it is and understand why you need it, it is recommended that you assess your current policy, identify any gaps, and add overland water coverage, if you find that it’s needed.
What Is Overland Water Coverage?
Overland water coverage is a type of home, condo, and tenant insurance coverage that protects against damage caused by freshwater entering your home from the ground level. Here are a few examples of incidents overland water coverage is typically meant to protect against:
- Rapid snowmelt
- Heavy rainfall
- Flash flooding
- River overflow
- Ice jams
- Spring run-off
If your property or personal belongings were to be damaged as a result of one of these incidents, overland water coverage is designed to help cover the associated repair or replacement costs. It may also cover personal belongings you have in a storage unit, however, this often depends on the terms outlined in your policy.
Remember, overland water coverage does not come standard when you buy insurance for your home, condo, or rental unit. Unlike standard coverages for perils such as fire and theft, you will find that insurance companies in Canada classify overland water coverage as optional coverage. Therefore, you have to explicitly request to have it added to your policy if you want to be covered against incidents like those listed above.
Overland Water Coverage vs. Flood Coverage
Overland water coverage and flood coverage are both meant to protect your home against water-related damage, however, they are not necessarily the same thing.
According to the Insurance Bureau of Canada, overland flooding typically involves bodies of fresh water, such as rivers or dams, overflowing onto dry land, while flood damage caused by storm surges or tidal waves involves saltwater inundating coastal areas. Based on these definitions, the difference between overland water coverage vs. flood coverage essentially comes down to freshwater vs. saltwater.
As such, the decision to add one or both of these types of coverage usually depends on where your home or condo is located in Canada. For instance, if you live near the coast in Quebec, Western Canada, Atlantic Canada, or Northern Canada, you might want both since you’re at risk for both types of flooding. On the other hand, if you live in Ontario or the Prairies, you may opt for just overland water coverage since you likely live hundreds, if not thousands, of kilometers from the nearest saltwater source.
Is Overland Water Coverage Necessary?
If you own a home or condo in Canada, you are not legally required to have overland water coverage. That doesn’t mean overland water coverage isn’t necessary or important though. On the contrary, here are a few compelling reasons why having overland water coverage is highly recommended.
- Overland water damage can occur year-round: Overland water damage is not confined to a particular season. It can happen at any point during the winter, spring, summer, and fall.
- Overland water damage can happen to anyone: You don’t need to live close to a body of water for your home or condo to be susceptible to overland water damage. A single intense rainstorm is all it takes for potential damage, which could result in thousands of dollars in repairs.
- Overland water damage can be expensive to fix: From compromising the structural integrity of your home to damaging your home’s electrical systems and interior finishes, overland water damage can be extensive and costly to repair.
When you consider all this, you can see why many insurance experts and homeowners say yes, you do need overland water coverage.
Next Steps: Get a Quote for Overland Water Coverage
Now that you know overland water coverage does not come standard with home, condo, and tenant insurance policies in Canada, your first step should be to review your existing policy. If you can’t find the answer in those documents, get in touch with your insurer and ask them about it. Before you add it though, you might want to compare the price of similar coverage from other insurance companies using a platform, like YouSet.