Does home insurance cover water damage in Ontario?

This is general information about how home insurance is commonly written in Ontario, not advice on your policy.

The test insurers apply

Two questions decide most water claims.

Was it sudden and accidental? A pipe that bursts overnight is. A fitting that dripped inside a wall for a year is not.

Where did the water come from? Inside plumbing, a drain, the roof, the ground or the surface outside. Each source is handled by a different part of the policy, or by none.

Usually covered

• A burst or frozen pipe, where the home was heated and looked after
• A failed washing machine hose, dishwasher line or fridge water line
• A water heater that suddenly lets go
• An overflowing toilet or tub
• Water that enters through an opening made by a covered event, such as wind tearing off shingles or a tree hitting the roof
• Water used to put out a fire

Usually only with optional coverage

• Sewer backup: water or sewage coming up through drains or toilets
• Sump pump failure: often grouped with sewer backup
• Overland water: rain, snowmelt or a river entering at ground level
• Service line failure: damage to buried pipes on your property, where offered

Usually not covered

• A leak that went on for weeks or months
• Seepage through the foundation
• Damage from lack of maintenance, such as a worn-out roof or failed caulking
• Freezing in a home left unheated or unchecked
• Mold on its own, unless it follows directly from a covered loss
• The cost of repairing the failed item itself, such as the pipe or the appliance

What the policy pays for when it applies

• Extracting water and drying the structure
• Removing and replacing damaged materials
• Rebuilding to like kind and quality
• Damaged belongings, up to your contents limit
• Additional living expenses if you cannot stay in the home

Things that affect a claim

Speed. Policies expect you to take reasonable steps to limit the damage. Shut off the water and start drying.

Evidence. Photos and video before cleanup, the failed part if possible, and a plumber’s or restoration contractor’s note on the cause.

Occupancy. Many policies have conditions for homes left empty, especially in winter: heat maintained, regular checks, or the water shut off and drained.

Maintenance history. An adjuster will look at whether the cause was sudden or the end of a long-running problem.

Deductibles and premiums

Some policies carry a higher deductible for water claims than for other losses. A claim can also affect your premium or a claims-free discount. For a small loss, compare the repair cost with your deductible and ask your broker about the effect before filing.

Condos and rentals

In a condo, the corporation’s policy covers the building and common elements, and your own policy covers your contents, improvements and, often, the corporation’s deductible if you are held responsible. A tenant’s policy covers the tenant’s belongings and living expenses. The building belongs to the landlord’s insurer.

A quick check you can do today

Read your declarations page and look for three lines: sewer backup, overland water, and the water deductible. If any of them is missing or unclear, call your broker.

Three examples

The fridge line. A plastic water line behind the fridge splits on a Tuesday afternoon and floods the kitchen and the ceiling below. Sudden and accidental, from internal plumbing. This is the kind of loss a standard policy is designed for. The line itself is not covered; the damage is.

The shower. Caulking around a shower failed a year ago. Water has been getting behind the tile ever since, and the subfloor is now rotten. This is gradual damage from a maintenance issue, and it is commonly excluded, even though the homeowner only just found it.

The storm. Heavy rain overwhelms the street’s sewer and water comes up through the basement floor drain. A standard policy does not respond. With the sewer backup endorsement, it does, up to that endorsement’s limit.

The same amount of water can be fully covered, partly covered or not covered at all, depending on how it arrived.

What to say when you report it

Be accurate and stick to what you know: when you found it, where the water is, what you have done to stop it. If you do not know the cause, say so. A guess recorded on the first call can complicate the claim later.

More: how restoration claims work.