The issue of climate change remains front and centre with the increasing number of severe weather events across the country, regardless of the season. The Insurance Bureau of Canada reports that in 2023, insured damage from natural catastrophes and severe weather events exceeded $3 billion for the second year in a row.
From forest fires to rains, flooding, and wind, ice and snow storms, Canada experiences all types of weather-related events that can lead to loss and damage to property. It’s always good to be prepared for disasters and severe weather, and of course, make sure that you have insurance coverage to help you recover.
Not all natural disasters or weather events are covered by insurance. So, what is?
Water
Damage or loss caused by water depends on where it’s coming from. A standard property insurance policy covers some types of water damage to your home or property such as the sudden and accidental overflow of water like those from a burst pipe. Depending on where you live, you may be able to purchase additional coverage for water damage caused by sewer back-up or overland water. Make sure you that you check the coverage amount on your insurance policy as water damage can be expensive to repair.
Overland water insurance provides coverage for loss or damage to your property caused by water that enters your property suddenly and accidentally due to the overflow of lakes and rivers, the sudden accumulation or run-off of surface waters such as torrential rain, and the sudden and accidental entrance of ground water through basement walls, foundation, or floor. Often, overland water needs to be purchased together with sewer back-up coverage so that you get the best water coverage available today. There is no coverage available for flood from salt water such as tsunamis and tidal waves.
For automobile insurance, comprehensive or all perils coverage covers your vehicle for damage or loss caused by rain or flood. Check your policy if you have these coverages since these are add-ons that you need to purchase.
Wind
In Canada, wind events usually happen between March and October, bringing windstorms that can damage roofs, fences and other property. Sometimes, tornadoes occur, causing major damage to homes and businesses. Most property insurance policies cover wind and tornado damage such as those caused by flying debris and falling branches or trees, as well as losses if water enters your home through openings caused by wind or hail.
Similar to water, check your automobile insurance policy if you have comprehensive or all perils coverage for your vehicle which covers loss or damage caused by wind, since these are add-ons that you need to purchase.
Fire
Damage or loss to your home or property caused by forest or wild fires is usually covered under your property insurance policy.
And just like both water and wind, comprehensive or all perils coverage on your automobile insurance policy covers your vehicle for loss or damage caused by fire. Check your insurance policy if you have these coverages since these are add-ons that you need to purchase.
What else is covered?
If you need to leave your home because it is unlivable due to damage caused by an insured event, or if you are under a mass evacuation order, your property insurance policy may have coverage to help with the costs of temporary accommodations and living expenses. This is called Additional Living Expenses coverage on your insurance policy.
If you experience a power outage during an insured event, you may have coverage for food spoilage that covers a certain amount for the fridge, freezer and their contents.
Ready to get coverage?
Want to learn more?
The Insurance Bureau of Canada has extensive resources about severe weather, climate change and your insurance coverage.
Be ready and stay protected.
In addition to the IBC’s resources, the Government of Canada also provides information on how you can be prepared for any emergency.