Does Home Insurance Cover Natural Disasters in Canada?
Canadians know that Mother Nature loves to be unpredictable. One minute it can be warm and sunny; the next minute can be windy and rainy. Due to the unpredictability of Canadian weather, you never know when a natural disaster may strike your home.
If you own a home, you most likely have home insurance. Home insurance financially protects your property and possessions from a wide array of risks and perils (insurance terms for unforeseen or unexpected events). However, some risks and perils are automatically included in your policy, while others aren't.
If you're still learning about the basics of home insurance, you're likely asking yourself, "does home insurance cover natural disasters in Canada?". Thankfully, you've come to the right place.
START A QUOTEContinue reading to learn more about natural disasters and home insurance in Canada.
Does home insurance cover natural disasters in Canada? — An in-depth guide
Yes, home insurance financially protects homeowners from a wide array of natural disasters.
Standard home insurance policies in Canada can include the following types of natural disaster coverage:
- Fire coverage (including forest fire insurance)
- Ice and hail coverage
- Water damage coverage (from specified sources, like unavoidable damage due to a broken pipe)
- Wind damage coverage (protection from high winds, hurricanes, tornadoes, etc.)
If one of the natural disasters listed above damages your home or its contents and you have a standard home insurance policy, your home insurance company will cover all or a portion of the repair or replacement-related expenses (the payout you receive depends on your coverage limits and if the loss could have been prevented with preventative maintenance).).
That being said, homeowners should note that standard home insurance policies don't automatically include coverage for all types of natural disasters.
Does home insurance cover natural disasters like earthquakes and floods?
Although your standard home insurance policy protects you from a wide range of natural disasters, it doesn't automatically protect you from everything.
Generally, standard home insurance policies do not automatically include coverage for earthquake or overland flood damage. However, that doesn't mean there's no way to protect yourself from these risks.
You can speak with your insurance advisor about amending your current home insurance policy with earthquake or overland flood coverage.
But what are these types of coverage, and are they worth it in the long run?
What is earthquake coverage and is it worth it?
Despite what you may think, earthquakes are quite common in several parts of Canada. If you live in a part of Canada that is prone to unexpected earthquakes, you can speak to your Surex insurance advisor about adding earthquake coverage to your home insurance policy.
Earthquake insurance financially protects your property and your possessions from earthquake-related damage, making it a must-have for policyholders that live in earthquake-prone areas.
In comparison to other forms of optional coverage, earthquake coverage is a relatively inexpensive way to amend your home insurance policy. However, homeowners should note that the price of earthquake coverage is heavily influenced by their home's location and the frequency of earthquakes in their area.
What is overland flood coverage and is it worth it?
Living near a body of water, like a pond or small lake, has a number of unique pros and cons. For starters, living near water gives homeowners the opportunity to connect with nature and enjoy activities like fishing and boating. However, living near water also comes with its fair share of risks, including overland floods.
When the snow melts in the spring, the influx of water can lead to severe flooding in neighbourhoods near lakes, ponds and rivers. A severe flood can lead to thousands of dollars worth of property damage. If you don't want to bear the cost by yourself, you should consider investing in overland flood coverage.
Overland flood coverage financially protects policyholders from damages related to unexpected overland floods, making it an invaluable option for homeowners that live near water. However, overland flood coverage also protects homeowners from damage related to flash floods, making it a practical choice for homeowners that live in areas that are less prone to overland floods.
Please speak with your Surex insurance advisor to learn more about overland flood coverage and how it works.
*Coverage and limits vary by company.*
How can you make sure that your home insurance policy offers optimal protection from natural disasters?
If you have questions or concerns about your current level of coverage, the first thing that you should do is reach out to your Surex insurance advisor.
Your Surex insurance advisor is happy to answer your questions and help you make the necessary changes to your home insurance policy.
Save up to 25% on your insurance premium when you team up with Surex
As an insurance brokerage, we know that home insurance is difficult to learn about. We also know that finding and comparing competitive insurance quotes is just as hard and even more time-consuming.
How does Surex make it easier to find the best home insurance quotes in Canada? It's simple:
Our top-notch team of insurance advisors works closely with some of the best home insurance companies in the country, which allows us to offer incredibly competitive quotes.
Not to mention, our team is always here to answer any insurance or policy-related questions that you may have.
Want to get started? Contact our team over the phone or online to receive your insurance quotes in ten minutes or less! Don't forget to ask your Surex insurance advisor about the pros of bundling your policies with one of our trusted providers.
Does home insurance cover natural disasters in Canada? — FAQ
Here are some common questions that we received from policyholders about natural disasters:
Does house insurance cover forest fires in Canada?
Yes, standard home insurance policies generally cover expenses related to unexpected house fires, including forest fires.
What type of water damage is covered by homeowners insurance in Canada?
Although standard home insurance policies do not cover damage related to overland floods, they do financially protect homeowners from a wide range of other types of unavoidable water damage. Some examples of these types of water unavoidable damage include:
- Water damage from eavestroughs
- Water damage from downspouts (as long as the downspouts directed water away from the home and are a certain length. If the downspouts go into the ground, most companies don't insure damage from this)
- Water damage from broken pipes, heating or cooling systems
