Protecting Your Home from Water Damage in Ontario

Water damage can be a homeowner’s worst nightmare. Whether it’s a burst pipe, a flooded basement, or a sewer backup, the damage can be costly and disruptive. But not all water damage is covered by insurance, and policies vary significantly between providers. That’s why it’s crucial to understand your coverage options and ensure you’re protected against the risks that matter most to you.

At Sentinel Risk Insurance, we believe in keeping our clients informed so they can make the best decisions for their homes and businesses. Here’s what you need to know about water damage insurance coverage, including what’s typically covered—and what’s not.

Types of Water Damage Covered by Insurance

Insurance providers offer various types of water damage coverage. However, each provider has unique policies, so coverage may differ depending on your insurer. Here are the most common types of water damage protection available:

Sewer Backup Coverage

• • Protects against water entering your home through sewer, septic systems, or sump pump failure.
  • Common causes: Heavy rain, blocked drains, municipal sewer overflow, sump pump failure.
  • Tip: Some policies offer a discount if you install a backwater valve or sump pump with a battery backup.
  • Tip: Some policies may also offer reimbursement for installing sewer backup prevention devices after a covered loss.

Overland Water Coverage (Flood Insurance)

• • Covers damage caused by freshwater floods and surface water buildup (e.g., heavy rain, spring thaw, river overflow).
  • Excludes damage from coastal flooding or storm surges.
  • Tip: Many Ontario homeowners are now eligible for overland water insurance—check your policy!

Groundwater Coverage

• • Protects against water entering through basement walls, foundations, or floors due to rising underground water tables.
  • Tip: This is often an optional add-on—ask your insurance broker if you’re eligible.

Burst Pipes & Sudden Leaks

• • Covers sudden and accidental water damage caused by burst pipes, appliance malfunctions, or water heater failures.
  • Excludes: Damage caused by neglect or lack of maintenance.
  • Tip: Keep your home heated above 15°C in winter to prevent frozen pipes.

What’s Typically NOT Covered?

While water damage coverage has expanded over the years, there are still several exclusions that homeowners should be aware of. Here’s what’s generally not covered by standard policies:

• Negligence & Lack of Maintenance – If your pipes freeze and burst because you left your home unheated, or if you ignored a small leak that turned into significant damage, your claim may be denied.
• Overland Flooding in High-Risk Areas – If your home is located in a designated floodplain, you may not be eligible for overland water coverage.
• Seepage & Gradual Damage – Insurance is designed to cover sudden and accidental events, not slow leaks or long-term water damage caused by poor maintenance.
• Mold & Rot Due to Long-Term Moisture – Damage caused by prolonged moisture, mold, or mildew is usually not covered unless it results from a covered event.
• Water Damage in a Vacant Home – If your home is left vacant for an extended period and you haven’t taken precautions (such as shutting off the water supply), your coverage may not apply.
• Costal Flooding & Storm Surges—Most Canadian insurance policies exclude saltwater damage. If a hurricane causes lake or ocean water levels to rise and flood homes, resulting damage may not be covered.

How to Ensure You Have the Right Coverage

• Review Your Policy – Check what water damage protection you currently have.
• Speak to Your Insurance Broker – They can explain gaps in coverage and recommend the best add-ons.
• Take Preventative Measures – Install a sump pump, backwater valve, and water sensors to minimize risk.
• Know Your Risk Level – Homes in low-lying or flood-prone areas may need extra coverage.

Get Expert Advice on Water Damage Insurance

At Sentinel Risk Insurance, we help homeowners find the right coverage for their needs. Every insurance company offers different protection, and our brokers work with 20+ insurance providers to find you the best policy.

Want to ensure you’re covered? Contact us today for a free policy review!

Call: 1-888-231-2011

Email: myserviceteam@sentinelrisk.ca