A few years ago, after my dishwasher was poorly installed, I found myself with a floating floor that was actually, well, floating! Walking on it felt like walking on a dock on a lake. I paid for the renovations myself. First of all, because the cost ended up not being so prohibitive and, second and above all, because the dishwasher had been installed by … me! If the damage had been more extensive, I would have notified my broker since most water damage is covered.

Water damage: Insurable but not necessarily insured

Some water damage is automatically covered by your insurance policy. A pipe that breaks in a wall, a washing machine that leaks, a bathtub that overflows or a dishwasher that is not properly hooked up are just a few examples. However, these are not the most frequent claims.

For a few years now, insurers have paid huge numbers of water damage claims and, rather than charging more to all their clients, companies have preferred to separate “water damage” coverage into several subcategories. Each person insured selects the coverage they want.

Types of water damage

Most claims fall into two types of damage. When the water comes from above, we call it “above-ground water damage.” For example, when rainwater infiltrates through windows, walls, roofs, leaking or overflowing gutters or downspouts.

If the water comes from below, it is more likely to be referred to as “groundwater damage and sewage.”
For example, sewer or septic system backups or breakdowns in the city water lines that so many people have heard about.

Finally, new coverage has become available in the past couple years. “Water inlet coverage” covers the cost of restoring your property after municipal employees come to repair the joint between their pipes and yours.

Why take these protections?

First of all, for the simple reason that these disasters happen regularly. Water damage can be very expensive. Not only will the insurer replace your water-damaged property directly, they will also pay for the cost of cleaning and rebuilding and, if necessary, your temporary relocation during the works.

Some people decline this coverage, saying that they will just sue either the city (in the event of a sewer backup) or the upstairs tenant (if the neighbour’s bathtub overflows).

Remember that a lawsuit is long and arduous and, in the end, it will never fully compensate you for the value of the damage that occurred. Your broker and insurer will support and compensate you quickly, and most importantly you’ll receive replacement value.
The line may be thin between certain types of coverage. For instance, after a heavy rainfall, water infiltrated my basement window. One might think it would be covered by the “above-ground water” protection, but since the water touched the ground before infiltrating my window, the “groundwater and sewers” coverage came into play.

If you have any questions, contact your broker for more information about variations in water damage coverage and exclusions. They know all about it! And if you’re hooking up a dishwasher, I’d really recommend calling a plumber.