Making a flood insurance claim

August 7th, 2014 by admin

The Insurance Bureau of Canada (IBC) has issued a press release in response to recent flash flooding in Burlington, Ontario. The Bureau has already stated this year that water has surpassed fire as the main cause of loss in much of Canada. 

Within the press release, the Bureau offers helpful guidelines to homeowners.

The Bureau states that home insurance policies may cover damage from sewer backup, but that "this coverage must be purchased as an add-on to a home insurance policy." On the other hand, damage from overland flooding and ground seepage is not always covered. Overland flooding typically happens "when bodies of water overflow onto dry land and cause damage," the Bureau writes. 

In addition, the Bureau addresses water-caused damage to vehicles. Providers will cover water damage to vehicles if the customer has purchased comprehensive or all perils coverage auto insurance. This is a voluntary, non-mandatory policy, but in cases of floods and other severe weather, it is well worth it. 

The Bureau also expands on the flood claims process. 

The first step to take is to call your insurance provider. Secondly, if it is safe to do so, you can take measures to prevent additional damage, such as boarding up holes and moving items out of the basement. However, you should be sure to consult with you insurance provider prior to doing this. In addition, the Bureau advises homeowners to document their damaged or lost items. Keeping a home inventory list and updating it regularly is very important. The Bureau also instructs homeowners to keep receipts from cleanup and living expenses. 

For answers to questions regarding flood insurance and your other home insurance needs, contact Fundy Mutual. One of our experienced home insurance brokers will help you.