Water damage, whether from a natural disaster or a structure failure, is one of the most common and financially devastating risks homeowners and apartment or condominium dwellers face, especially in areas of British Columbia that are prone to a range of water-related risks. If you are not already covered by water damage insurance, or are uncertain that you are adequately covered, please talk to your Murrick Group insurance agent.
Three Main Causes of Water Damage
The three main causes of water-damage that can be covered by insurance are:
- overland flooding from heavy rainfall, river overflow, or rapid snowmelt;
- sewer backup when water backs up through sewers or drains; and
- storm-related, including wind-driven rain entering through broken windows or roofs, but not when the damage is due to gradual leaks or poor maintenance.
Insurance for water damage is usually optional and can be added as a separate endorsement to a home insurance policy. Insurance can also be added to cover temporary accommodations if your home becomes uninhabitable due to water damage.
Several insurance providers offer water-damage protection, and your Murrick Group insurance agent can help you to find the right provider for your specific needs. We can help you understand the risks of the location where your home is located, identify the insurance providers that offer the types of coverage you need, compare their coverage options, and ensure that you have the necessary endorsements. We will also help you to understand the exclusions of the insurance you select.
Common Exclusions of Water Damage Insurance
Each home insurance policy has slightly different exclusions, so your Murrick Group insurance agent will explain the exclusions of the policy you select. These exclusions might include groundwater seepage though foundations or basement walls, gradual water damage from long-term issues like leaky pipes or poor maintenance, damage to uninsurable detached structures such as docks or boathouses, and tidal and coastal flooding.
Damage from flooding events such as storm surges, tsunamis, or coastal flooding caused by hurricanes or cyclones, is generally excluded from standard home insurance policies, especially when saltwater is involved because of its corrosive nature. In some cases, a specific flood insurance policy can be purchased to cover saltwater flooding. If you live in an area that is at risk for flooding events, please discuss your options with your Murrick Group insurance agent. We are also aware of additional resources, such as the BC Government’s flood-risk assessment tools, Disaster Financial Assistance after uninsurable losses from natural disasters, and municipal support programs for flood prevention.
Condominium Insurance
If you are a condo owner, you have an additional complication with your home insurance: the coverage provided by your strata’s insurance versus the coverage provided by your personal home insurance. Generally, your strata’s building insurance covers common areas and the building’s structure, while your policy covers contents inside your home and any unit improvements. Therefore, sharing a current copy of your strata’s building insurance policy with your Murrick Group insurance agent is important, as they will be able to review your strata’s policy and advise you whether or not you have adequate coverage on your personal insurance policy.
The Claims Process
If you experience water damage to your home, there are some immediate steps you should take. If you can, do whatever is possible to stop or reduce the damage, then document the damage, including taking photos or videos of the affected areas. Make a list of damaged items and gather receipts if possible. Notify your Murrick Group insurance agent as soon as possible and we will help you to navigate the next steps, which might include arranging a visit from an insurance adjuster who will assess the damage, understanding your coverage, and reviewing your settlement offer.
Water Damage Insurance is Essential
If you experience water damage to your home, there are some immediate steps you should take. If you can, do whatever is possible to stop or reduce the damage, then document the damage, including taking photos or videos of the affected areas. Make a list of damaged items and gather receipts if possible. Notify your Murrick Group insurance agent as soon as possible and we will help you to navigate the next steps, which might include arranging a visit from an insurance adjuster who will assess the damage, understanding your coverage, and reviewing your settlement offer.
Written by Farooq Khan
