Water damage can cause unwanted stress and costs to the people affected. Most people don't worry about being a victim of water damage, however, water damage is the No. 1 cause of home insurance payouts in Canada, according to Henry Blumenthal, vice-president of TD Insurance.
Blumenthal told The Globe and Mail that water damage accounts for more than 50 percent of all losses covered, twice as much as one decade ago.
“We see that for two reasons. The frequency of storms is higher than before, and it’s combined with the fact that Canadians are equipped with more and more finished basements, containing more expensive things,” Blumenthal told The Globe and Mail.
Cases of large-scale flooding are generally compensated by the provincial, municipal and federal funding.
In smaller cases, if a bathtub overflows or a pipe bursts, standard home insurance coverage will take care of it. A backed up sewer can also be covered, but it is an extra amenity that needs to be requested.
So while getting ready for summer, homeowners should make sure to check all of the terms of a policy to make sure they are covered as they need. It is best to act quickly if any of these situations should arise so they don't end up spending a lot of money fixing the plumbing of a home or cleaning up.
