Damage done from clean water – water that didn’t come from either the ground or the sewer – is usually covered. This would include damage from a burst pipe, water in your hot water tank, toilet or alternative reservoir that backs up into your living space.
Flood damage vs. Water damage: What’s the difference?
Although they may sound like one and the same, there is a key difference. Flood damage is sourced from natural occurring events such as overflowing lakes, rivers, or severe rain – these claims are typically separate from your standard home insurance. Water damage claims are usually included in your homeowner's insurance coverage and will cover things like broken pipes. Review your individual policy and learn more about your specific coverage and eligibility.
What flood insurance does and doesn’t cover
Your flood insurance coverage will most likely pay for the drying out of your home, removal of any debris, restoring fittings and fixtures like lights and plugs, any professional services required for rebuilding, as well as legal representation if you’re suing or being sued.
Your flood insurance will probably not cover your personal belongings (that would be covered by your contents coverage).
Does flood insurance coverage include rain water?
Over the last few years, due to the changes in weather and the frequency of devastating flooding events in Canada over that time, many insurance companies have begun offering overland flood insurance. This would cover you if rain water seeped through your walls, or your house was breached by water from an out-of-control river or overflowing lake. Some home insurance providers offer overland coverage as a standard feature; some offer it as an option and others don’t offer it at all. If you live near water or in a temperamental weather zone, this would be something to verify with your home insurance provider. Even if you don’t live in a designated flood zone, flood insurance is important to have as it offers peace of mind if an incident does occur.
Dirty water is essentially sewage. It’s the third most common culprit in flood insurance coverage claims. If you have a finished basement, and especially if you have tenants in your basement, this option is a very good idea; you’ll never know if a pipe is ready to burst until it does.