Please post any questions that you have on flooding issues to bsmith@nvca.on.ca and we will try to answer your questions promptly. Frequently asked questions will be posted on this web page.
                                                                                                                                   

Do insurance companies cover losses due to water damage?
Source: The Insurance Bureau of Canada
Yes. However, coverage is usually limited to damage arising from sudden and accidental escape of water from an indoor plumbing, heating, sprinkler or air-conditioning system, or from a "domestic appliance" (which includes water heaters, waterbeds, washing machines and swimming pools) on your premises, or from a water main. Coverage usually excludes damage arising from 1) floodwater - such as that from an overflowing river; 2) repeated or continuous water seepage (from a cracked basement wall or an un-repaired pipe for example); 3) the backing up of water from a sewer, sump or septic tank; 4) leaky gutters and downspouts. Optional coverage for some of these perils may be available. 
                     

Why don't insurers generally offer flood insurance?
Source: The Insurance Bureau of Canada
In Canada, home insurance policies generally do not cover damage caused by water overflowing the banks of rivers or streams, or shores of lakes and oceans. 

Most areas that can be flooded eventually will be. Insurance is there to compensate you financially for losses that are random and unexpected. If you live on a floodplain, there's very little unexpected about flooding. Typically such losses occur at fairly regular, and in some parts of Canada, fairly frequent intervals. Flood insurance would be of interest only to a relatively small population of people living in areas prone to flooding, thus defeating the basic principle of insurance that the premiums of many people pay for the losses of a few.

Insurance companies are unable to implement adequate loss prevention measures in order to limit their exposure to flood risks. Loss prevention measures would include preventing construction in flood plains, and upgrading dykes, flood control dams, channels and sewer systems - all representing infrastructure enhancements/developments which are within the governments' jurisdiction, not insurance companies.

In certain parts of the country, limited flood-damage coverage may be offered, but at relatively high rates and only if purchased year-round. "Comprehensive" coverage in an automobile policy may cover the relatively slight risk of damage by rising water, because vehicles can often be moved to higher ground, out of harms way.                                  

What are some of the insurance costs for natural hazards in Canada?
Source: The Insurance Bureau of Canada Insured losses

January 1998, Ice storm, Quebec and Eastern Ontario, $1.44 billion
September 1991, Hail, Calgary, Alberta, $343 million
July 1996, Flooding, Saguenay, Quebec, $165 million
July 1987, Tornado, Edmonton, Alberta, $148 million
July 1996, Flood and Hail, Winnipeg, Manitoba, $147 million
July 1996, Hail, Calgary, Alberta, $119 million
July 1996, Hail, Calgary, Alberta, $85 million
May 1985, Tornado, Barrie, Ontario, $84 million
November 1996, Flooding, Montreal and Quebec City, Quebec, $76 million
July 1995, Storm, Southern Ontario, $53 million
January, 1999, Winter storm Toronto, Ontario, $50 million*
*estimate based on survey of insurers

The figures above represent only part of the bill. The costs to government, taxpayers and the uninsured are not included. And, of course, there's no way to put a price on the loss of life and human suffering.

What can I do before and after a flood?
If my property is being flooded, or I have noticed a large ice-jam in the river, who can I call to find out information and who can I call if I need assistance?

While residents have an obligation to safeguard themselves as much as possible, there are a number of organizations you can call on for help, depending on the situation. Personal emergencies involving fires or health, for example, can be referred to your local police, fire or ambulance department. If you have concerns regarding ice-jams or other flooding situations, you can call your local municipality, or the Conservation Authority may contact the county or municipality on your behalf.

For information on 'what to do after a flood' and other homeowner flood prevention information, visit the Canada Mortgage and Housing Corporation web site http://www.cmhc-schl.gc.ca/en/co/maho/em/em_001.cfm