Kanetix Forum

Last week I experienced basement flooding in my Calgary residence, after meltwater seeped through seams in the metal grating of my window well, filling up the basin and entering through the base of the window. I immediately called my insurance, TD Meloche Monnex, and they arranged for a clean-up crew to come in and set up fans and dehumidifiers, and remove the wet carpeting and foam. Baseboards, dry wall, and insulation will also need to be replaced.

When I spoke to my insurance adjuster a few days later, I was in for a harsh reality check. I first bought my residence a little over a year ago, and at the time I had paid in for a water damage endorsement which covered damages due to water infiltration, seepage, or leakage originating from external sources. My policy renewed in February, and the adjuster told me that under the new policy, these items are now excluded (yes, I should have read my policy renewal documents more closely when I received them to avoid my surprise).

(continued from above...)
Apparently, TD Meloche Monnex is no longer covering these items under other any other endorsements either.

The other night I looked at RBC and AllState Insurance, but couldn't find any statements that water damage due to seepage from outside the home is covered. Hence my question: is this type of coverage going the way of the dodo, or is it still possible to buy coverage from any other insurance providers?

These days, losses due to water are increasing in frequency. It used to be that home insurance was called fire insurance with some added extended coverages. Today it could be said that home insurance is for water damage, and other coverages such as fire are ancillary. Because these claims are on the rise, some insurers are choosing to restrict coverage or raise rates to compensate. One definition of the additional water escape coverage would be loss or damage caused by the escape of water from a sewer, drain, sump system, septic tank, eaves trough or downspout." Seepage or leakage from the outside are things that are often not covered because this falls under flood. Floods are generally not insured in Canada.

Water damage, Water escape, sewer back, flood are all different types of insurance and all cover different things. It can get very confusing as to what each will cover so your best bet is to talk about it with your agent and make sure you know what you're covered for.