Owning and renting involves an infinite amount of risk. However, water damage alone represents 50% of claim payment amounts. It is therefore essential to be informed about the various types of water damage and the coverage that is available.
Your home insurance policy covers some of the risk related to water damage, namely overflow or breakage of plumbing fixtures, such as a leaking water heater, a burst pipe, or a bathtub that overflows. Other types of water damage must be insured under a rider. However, all natural disasters are not covered. It is important to discuss the limits and exclusions of each type of coverage with your insurance broker.
Soil and Underground Water Damage Including Sewer Backup
This rider covers damage to buildings and insured property directly damaged by sudden or accidental water seepage or infiltration into the building, particularly through foundations and the ground, as well as water damage due to sewer and septic tank overflow or backup.
On average, insurers offer amounts of $10,000 to $100,000 in insurance coverage. To determine the coverage amount, it is important to know the various costs that may be incurred in the event of a disaster:
- It is important to bring in professionals to carry out post-disaster cleanup. A delayed response or a basement that has not been properly dried out can lead to gradual damage and mould, which are excluded from the insurance policy. Cleaning costs can easily reach $10,000.
- Demolition of the affected areas.
- Storage costs for property that was not damaged by the disaster.
- Relocation costs, if necessary.
- Property that could not be recovered will be replaced or repaired, for the most part, at the cost of its full replacement value.
- Reconstruction work.
- Taxes on costs you incur.
Above-Ground Water Damage
This insurance covers property that is directly damaged by sudden or accidental seepage of rain or melting snow through the roofs or walls of the building, as well as through their openings, particularly doors and windows.
Water Service Pipe Breakage
Water service pipes transport drinking water to your home. This insurance covers demolition and restoration costs when the water service pipe of a residential building bursts, even if no insured property is damaged. This way, you won’t have to worry when you see a tractor ripping out your beautiful rose bushes.
Overflow of Bodies of Water
Faced with growing demand, certain insurance companies now offer coverage for overflow of bodies of water. If you would like to be covered, it is important to inform your broker.
In short, with aging infrastructure in certain areas and the continuously increasing number of natural disasters, the number of water damage claims will only grow. As a result, it is important to discuss water damage coverage with your insurance broker, who will take care of assessing your needs.