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Flood insurance can be a nebulous term in the home insurance industry, depending on who you ask. If you think that it’s protection against all kinds of water damage – whether it’s coming from a leaky pipe, an overflowing river or a backed-up toilet – you’d be wrong.
The truth is, all-in-one flood insurance doesn’t exist in Canada. Instead, what you get is three types of water damage protection (two of which are often excluded from standard policies):
When buying a home insurance policy, make sure you’re clear on what you’re paying for. ‘Water damage’ may sound like comprehensive flood protection, but it isn’t. If anything seems unclear, consult with your insurer to gain clarity. Their nomenclature may differ from what’s listed here, but the overall protections should be the same.
It’s also worth noting that most Canadian insurers do not offer protection against coastal flooding (also known as ‘storm surges’) – caused by abnormally high sea water levels. This isn’t to say that Canadian homes are not at risk of coastal flooding, however. In fact, according to a recent study, more than 3.9 million Canadians live in areas that might be impacted by coastal flooding by the end of the century. If you think your home is at risk, learn more about coast flooding from the Government of Canada.
Floods are a growing risk for many Canadians. In 2024, for instance, flooding in Toronto and other parts of southern Ontario cost $940 million in insured damage, according to the Insurance Bureau of Canada (IBC). In Quebec, flooding cost a whopping $2.5 billion that year. In 2023, Nova Scotia floods cost the province $170 million in insured damage.
In fact, total insured losses from flooding cost the country close to $800 million per year over the last decade.
According to the Canadian Climate Institute, extreme rainfall events, which currently occur every 20 years in Canada, could occur every five years by the end of the century.
IBC estimates that there are over 1.5 million high-risk households that cannot even obtain affordable flood insurance (something you can try to remedy by comparing quotes here on RATESDOTCA).
Overall, flood insurance has never been more important, so if you can afford it, it might be worth purchasing – especially if you live in an area where flooding is a real risk.
| Overland water | Water damage | Sewer back-up | Coastal flooding | |
|---|---|---|---|---|
| What is covered? |
Damage resulting from bodies of water such as lakes, rivers or oceans overflowing onto dry land, due to a natural disaster.
Damage from rainwater and spring thaws that seep in and flood your home. |
Water damage from sources inside the home, such as a burst pipe, leaky dishwasher or a malfunctioning sprinkler. | Water damage caused by the back-up of freshwater or sewage from a septic system or sump pump. | Water damage due to a flood caused by a body of saltwater, such as a tidal wave or a tsunami. |
| Is it included in a standard home insurance policy? | No. | Yes. | No. | No. |
| Is it covered in Canada? | Yes. | Yes. | Yes. | No. |
Here are the types of water damage that your standard home insurance policy should cover:
What you won’t find on most standard home insurance policies is coverage for damage coming from water sources outside your home. This is one of the biggest sources of confusion for many home insurance policyholders. When people think of ‘water damage,’ they instantly imagine a standard flood (e.g., coming from an overflowing river), but that’s not actually the case.
That said, if you do want to protect your home from other sources of water, you can do that – by purchasing these add-ons:
Certain kinds of water damage won’t get covered at all. Usually, when water damage is gradual, it won’t get covered. The reason for this is that gradual water damage is largely preventable and is therefore classified under ‘maintenance’ – which falls on the policyholder’s shoulders, not the insurer.
Here are some examples of water damage that’s unlikely to get covered by your insurer:
Note: If your home is vacant – meaning it remains unoccupied for more than 30 days – a water leak can occur while you’re away. Even if the leak is sudden, it may not be covered due to too much time passing between the leak occurring and you submitting the claim. It’s worth getting vacant home insurance in this scenario.
In general, the more time passes between claim submission and occurrence of water damage, the less likely the claim is to be accepted. So, be sure to contact your insurer as soon as the damage occurs. Don’t wait.
| Type of damage | Covered? | Type of coverage | Exclusions |
|---|---|---|---|
| Sudden bursting of pipes; Plumbing; Water main breaks; Freezing of indoor plumbing; Overflowing or leaking appliances | Yes | Standard home insurance | Frozen pipes in a vacant home left uninsulated; Flooding due to poor insulation; Wear and tear; Rust, or corrosion; Slow deterioration |
| Overland flood damage caused by a large body of freshwater that flows over dry land (caused by snow melts, rainfall, etc.) and then enters your home through doors, windows or cracks | Yes | Overland water insurance (add-on) | Overland flood damage due to a dam disaster, or saltwater flooding due to tidal flooding; Earthquakes, landslides, or tsunamis; Damage caused by rising groundwater |
| Flood damage if you live in a known, high-risk flood plain | May not be covered | Check with your provider | Home located within 100 metres of flowing water |
| Damage or flooding caused by wastewater that backs up through sewers or municipal septic systems | Yes | Sewer back-up coverage (add-on) | Sewer back-ups caused by exterior drains at the bottom of your window wells, sump pump power failure |
| Freshwater flooding in your toilets, basement, or drains due to a storm sewer back-up | Yes | Sewer back-up coverage (add-on) | Depending on your provider, sewer back-ups caused by exterior drains at the bottom of your window wells and sump pump power failure may not be covered. |
| Damage to vehicles due to flooding and rising water by rain, hailstorms, thunderstorms and lightning; Sewer line back-up | Yes; under auto insurance | Comprehensive or ‘all perils’ coverage (under auto insurance) | Water damage due to leaving a window open, or general negligence |
| Damage to vehicles due to falling trees, branches or other objects during a natural disaster | Yes; under auto insurance | Comprehensive or ‘all perils’ coverage (under auto insurance) | Water damage due to leaving a window open, or general negligence |
If you are unable to obtain sufficient overland water coverage due to living in a high-risk area, you can look to your local government for protection.
Ontario has a Disaster Recovery Assistance for Ontarians (DRAO) program, which can help you recover costs following a natural disaster (such as an overland flood). It’s applicable if the damage is sudden or unexpected.
If eligible, DRAO can reimburse you for:
Consult the Government of Canada for more information on disaster assistance in other provinces.
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Got more questions about flood insurance in Canada? We got you covered.
If you rent an apartment in a flood plain, or a basement apartment, you may need flood insurance. Your landlord will typically have property/landlord insurance, which will insure the building and its structure, but the safety of your contents (like your furniture, electronics, clothes and other belongings inside your rental home) is on you and this is what tenant insurance is for.
A basic renters’ insurance does not automatically provide coverage against flood damage. However, you can buy this coverage as an add-on into your existing tenant insurance policy. Water damage like sudden leaks and pipe bursts will typically be covered in your standard tenant insurance.
If you feel like your home is prone to rainstorms or flood, don’t wait till the water comes up to consider flood insurance. Talk to your representative today to see if you should add this extra coverage to your insurance policy.
Since tidal waves, tsunamis, or breakage of dams are all risks that affect only a small percentage of the population living in close proximity to coastal areas and other regions, the cost of this coverage would be exponentially high against the risk.
No, coverage for your vehicle is not covered under home insurance flood coverage.
That said, repairs are typically covered if you have comprehensive coverage on your auto insurance policy, or if you have purchased an all-perils coverage. It is not included in your basic mandatory auto insurance coverage.
Since water that gets into your car during a sudden storm, overflow or flooding can cause severe damage to the vehicle’s engine, it’s a good idea to review your car insurance policy to find out what is and is not covered.
Generally, yes, you can. While water damage caused by sources located on your property, such as pipes or appliances, is covered by standard home insurance, damage from overland flooding is not.
Overland flooding refers to bodies of water like lakes, rivers, streams or ponds overflowing onto dry land. Overland water (also known as inland flooding) coverage will protect you from this type of water damage, in addition to damage caused by melting snow or excessive rainwater. You can also purchase sewer back-up coverage, either in addition to overland water protection or separately.
Do note that if you live in an area where the risk of overland flooding is high, you may not be able to purchase this coverage, so check with your insurer to make sure.
Each insurance policy is different, and when it comes to flood insurance, you need a policy that is unique to your needs. This is why there is no one best type of flood insurance, as everyone’s situation is different.
When shopping for home insurance quotes on RATESDOTCA, you can get rates from multiple top providers at once and compare them side by side. You can also talk to these providers to ensure you have all the coverage you need, come rain or hail.
Not every provider offers overland flooding insurance, and coverages vary vastly, which is why you should get quotes from multiple insurers to make sure you are getting the best rates for your needs.
Yes, you can be denied flood insurance if you misrepresent your situation. Any damage caused by negligence or poor maintenance of your property can cause your claims to be denied. Some of these instances include:
Your insurance is there to cover you for any sudden, accidental, or unexpected water/flood damage caused by breakdowns, blockages, clogging, or natural disasters, not to make up for your negligence.
In some cases, older homes that stand in a flood plain cannot be insured because the risk of flooding and damage is exponentially high. Homeowners in such situations can still be assisted with their claims by the Disaster Financial Assistance Arrangements program funded by the federal government but distributed at a provincial government level.
That depends on whether or not your condo unit is at risk in the event of flooding, such as if it is on the first floor or a lower unit. Whether you rent or own, you might want to consider adding flood insurance, including sewer system backup coverage, to your policy to ensure your belongings are protected.
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