by Brodie Bott
Given global climate change, water-related damage is becoming an increasingly prevalent issue for home and small-business owners in Canada. Nearly one in three Canadians don’t know what type of water coverage they have or need.
A response to a growing threat for Canadian homeowners
Sewer backup (water that backs up into the home from a sewer line) is the most common insurance coverage, but an exterior flood—from a storm or overflowing eaves, downspouts or drains—that flows into the house is generally not covered.
While governments are now recognizing this growing issue and allocating a greater proportion of funds to water and waste infrastructure; these modernizations will take time – creating an ongoing challenge for insurers and brokers to educate customers effectively on what coverage options exist.
In response to this particular mounting risk, RSA launched Waterproof Coverage™ in November 2015. The product combines coverage for the sewer back-up endorsement with coverage for freshwater flooding, and it has been widely available to customers across the country. We recognize that understanding flood coverage can be confusing and most homeowner policies only offer limited coverage. Waterproof Coverage was introduced to offer homeowners a simple and comprehensive choice for protecting their property.
The development of Waterproof Coverage was facilitated by location data, in addition to greater flexibility for sewer backup choices and options through the provision of an ‘a la carte’ approach to the coverage.
Looking to learn more about flood risk? Be sure to check out Insurance Business Canada’s Flood Risk and Insurance Masterclass on June 16, 2016, in Toronto, Ontario.