Protecting your home and belongings from flood damage

A proactive approach is your best strategy

After a wet fall and snowy winter, experts are forecasting a high probability for spring flooding in Manitoba and Saskatchewan. That being the case, homeowners should take note that overland flooding is generally not covered by insurance and it is important for homeowners to take measures to protect their belongings from water damage.

In Canada, overland flooding is not usually considered an insurable risk. The reason is simple—insurers believe that most areas prone to flooding will eventually succumb. Manitoba is taking preventive measures to address flood concerns, but these measures cannot eliminate the risk of flooding. Moreover, this type of insurance would only be of interest to a relatively small population of people living in areas prone to flooding, thereby defeating the basic principle of insurance that the premiums of many people pay for the losses of a few.

Of equal, if not more, concern is sewer backup damage, for which insurance coverage may be available as an add-on endorsement to a homeowner’s policy. In fact, the Institute for Catastrophic Loss Reduction (ICLR) has noted that the insurance industry’s biggest source of claims is sewer backups.

A 2002 ICLR study on basement flooding found that the main reason for the high cost of basement flooding claims was due to the presence of expensive items in basements, like televisions, computers and entertainment centres. Homeowners should ensure that anything of value in their basement is out of reach of any potential leaks or water damage. Installing sump pumps and sewer backflow valves is a smart, proactive way to reduce the risk of water damage in the basement, and it may be a requirement of coverage under your homeowner’s insurance policy. More importantly, homeowners should take the appropriate steps to protect themselves.

The City of Winnipeg recently approved a sump pump subsidy to help homeowners buy and install sump pits and backwater valves. The subsidy will cover 60 per cent of the invoiced cost, including labour, up to a maximum of $3,000 for installing both an in-line backwater valve and a sump pit drainage system.

It is important to check your homeowner’s policy to determine exactly what kinds of flooding, if any, are covered by your insurance company and to increase your coverage if appropriate. An important consideration is whether your property has suffered flooding in the past. If so, your insurance company may refuse to issue flood coverage or may require the installation of the aforementioned protection systems before continuing to provide flood coverage.

In light of the current conditions, homeowners need to start thinking about the spring thaw and taking the appropriate steps to protect their properties against a potential flood. Overland flooding is generally not covered by home insurance, so homeowners are urged to take preventive action now. Sewer backup flooding may be covered by insurance, but it is an optional coverage so homeowners are advised to review their homeowner’s policy and consult their insurance broker or their lawyer for clarification.

Brandy Cousins is a lawyer with Fillmore Riley LLP who practises in the area of civil litigation with an emphasis on insurance law.