The Increasing Risk of Water Damage

Water Damage is on the rise

Water Damage has now surpassed fire as the leading cause of personal property claims. It is estimated that, on average, the Canadian insurance industry pays about $1.7 billion per year in claims due to water damage, and here is why:

·         Changing weather, unpredictable weather patterns

·         Increased precipitation

·         Aging municipal structures (water and sewer pipelines)

·         Home improvement trends, i.e. basement family rooms

·         Increased use of hot tubs, dishwashers and other operating appliances

Home insurance was created when fire was the major cause of loss, and homes did not have finished basements with expensive furnishings as they often do today. There are possible ways to save on your home insurance’s water damage premium if applied correctly:

·         Keeping an unfinished basement can save on water damage or water escape premiums

·         A tank less water heater can impact savings

·         A hot water tank that is less than 6 years old can also save on your premium

·         Installing an automatic water shut-off valve and sensors

·         A professionally installed sump pump or backwater valve can save on water back-up or water escape premiums

Flood vs. Sewer Backup/Water Escape Backup Coverage: What you should know

A 2004 survey conducted for the Insurance Bureau of Canada found that nearly 61% of Canadians mistakenly believe that their home insurance provides coverage for overland flooding. The truth of the matter is that the home insurance currently offer to Canadians regardless of where they live does not cover storm surges and overland flooding.

Too much water in urban areas poses a different risk. Sewer back-up occurs when the city municipal drainage system overflows and sends water back through the pipes and into your home. This may happen for a variety of reasons, but the most common is a great deal of water from rainfall or snow melt overwhelming the system.

Sewer back-up/water escape coverage is available for purchase as an add-on to an existing home insurance policy. As with any optional coverage, it is subject to the underwriting guidelines set out by your insurer, so please contact us at Sturino & Associates Insurance Brokers Ltd to make sure you are protected.

A Few Tips on How to Prevent Water Damage

·         Backwater Valves should be installed by a professional plumber, and should allow acces for regular maintenance.

·         Disconnect all downspouts connected to the municipal sewer system.

·         Make sure downspouts extend at least 6 feet (where possible) from exterior walls and drain away from the house.

·         Replace aging fixtures, tubs and toilets.

·         Ensure the home is checked during absences, especially during the heating season.

·         Consider switching to a tank less water heater.

Many municipalities have programs in place to help deal with sewer bac-up/water escape issues. Please contact us or stop by for additional resources and information on how to prevent water damage.

Sturino & Associates Insurance Brokers Ltd.

7 Jopling Avenue South

Etobicoke, ON M9B 3P4

416-231-9980

Sturino@bellnet.ca

www.facebook.com/SturinoAndAssociatesBrokers

Source: Insurance Bureau of Canada – Telling the Weather Story