Protection Topic

Water Damage, Flooding and Leak Risk

ENVIRONMENTAL RISK · FLOOD PREPAREDNESS

Flood Exposure and Preparedness

Flooding can damage a home’s structure, belongings and essential
systems. Understanding common water sources, local exposure and
insurance limitations can help households prepare before damage occurs.

01 / FLOOD EVIDENCE

What the Canadian evidence shows

~50%
of home insurance claims, according to the cited Government of Canada information, are associated with flooding.
$40K+
average repair cost for a flooded basement, as reported by the Government of Canada.

The repair figure refers specifically to a flooded-basement
estimate. It is not the national average cost of every water
damage or flood insurance claim.

Why it matters

Water damage can extend beyond visible surfaces to
flooring, insulation, electrical systems and stored belongings.

02 / COMMON WATER SOURCES

Where water damage can begin

Flood exposure is not limited to rivers and heavy rainfall.
Water can enter or escape from systems inside and around a home.

  • Water heaters and plumbing fittings.
  • Washing machines, dishwashers, refrigerators and their supply lines.
  • Sump systems and drainage failures.
  • Roof leaks and ice-related water intrusion.
  • Frozen plumbing and heating interruptions.
Look beyond the basement

Periodically inspect appliance connections, exposed pipes,
drainage paths and areas where water could collect.

03 / HOUSEHOLD READINESS

Actions that can improve flood readiness

Government of Canada preparedness guidance emphasizes
understanding local risk and reducing preventable water entry.

  • Know local flood risk and follow provincial, territorial and municipal information.
  • Keep gutters and downspouts clear; where feasible, direct discharge at least two metres away from the foundation.
  • Grade soil away from the home.
  • Consider a sump pump and backflow prevention where appropriate and permitted.
  • Store important documents higher or keep digital copies.
  • Know how to turn off utilities safely and follow supplier or emergency instructions.
Prepare safely

Never enter a flooded area where electrical hazards may
be present. Follow local emergency instructions.

04 / INSURANCE COVERAGE

Not all water damage is covered the same way

The cause of water entry and the wording of the policy can
affect whether a loss is covered.

01

Sudden or accidental water escape

Certain losses from burst pipes or plumbing failures
may be covered, subject to policy terms, exclusions
and maintenance requirements.

02

Sewer backup

Protection may require an optional endorsement or
separate coverage, depending on the policy.

03

Overland flood

Coverage for surface water entering from sources
such as overflowing rivers or heavy rainfall may
need to be purchased separately.

04

Groundwater and seepage

These losses can be treated differently from sudden
water escape and may be restricted or excluded.
Check the exact policy wording.

CANADIAN HOME PROTECTION REPORT™ 2026
Sources: Government of Canada · Insurance Bureau of Canada

Important: Home protection technology cannot prevent every loss or guarantee detection, reporting or resolution. Insurance coverage, deductibles, exclusions, endorsements, pricing and eligibility vary by insurer and policy.