The below is from a press release sent out to media by LowestRates.ca
TORONTO, ONT.: The increase in climate-change induced natural disasters such as the floods that soaked Toronto last week have put the homes and financial security of countless homeowners at risk.
According to Canadian government data, 80% of major Canadian cities are in full or partial flood zones.
Floods are not covered as a basic peril on most standard home insurance policies.
Depending on where you live your coverage limit for flood exposures may be restricted or the coverage may not be available.
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This makes it imperative for homeowners to understand the coverage limits in their policies, especially if they live in an area prone to flooding.
In addition, anyone who is considering purchasing a home in a flood-prone area should use online resources such as floodplain maps to research the potential for future water damage.
“Homeowners need to ensure they have the right water coverage for the potential risks posed to their properties,” says Steven Harris, LowestRates.ca expert and licensed insurance broker.
“Water has become a more prominent fixture in the risk outlook for Canadian properties, but it’s one of the more fragmented parts of property insurance.”
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What homeowners and tenants should know about home insurance in flood-prone zones:
While floodplain mapping is one data point an insurer can use to determine the risk of water damage in different regions, insurance companies also reference existing losses in the area when making coverage availability and pricing decisions
Understanding the existing environmental risks of a home, such as flood risk, is key to understanding which insurance products are needed to offset those risks
Review policies prior to renewal as coverage can change. If a region has experienced a high number of claims, for example after a flood, an insurer may opt to reduce or restrict coverage
Investing in water loss mitigation devices, such as a sump pump with a battery backup or backflow prevention valve can minimize your risk of flooding and may allow for greater water coverage with some insurers
If you live in a high-rise building, you can still have exposure to loss from sewer backup
Wind, ice and fire are usually included in most home insurance policies, while overland flooding, sewer backup flooding, and earthquake insurance are available as add-ons. Coverage for those add-ons also varies from insurer to insurer
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Tips for preventing flooding:
Install a backflow prevention device or a sump pump with a battery backup
Clean gutters regularly
Install and maintain downspouts and ensure your yard is properly graded so water pours away from the home
- The above was from a press release sent out to media by LowestRates.ca
