A:The end result of water damage is almost always the same—repairs to your floors, drywall or even electrical and heating systems. However, the cause of the damage ultimately determines whether it’s likely to be covered by insurance. What matters is how water enters your home.
Get personalized quotes from Canada's top home insurance providers.Home insuranceRenters insuranceCondo insuranceYou will be leaving MoneySense. Just close the tab to return.Setting aside incidental floods, such as pipes breaking or washing machines leaking, natural floods—such as those caused by snowmelt runoff or an overflowing river—should cause all homeowners concern.
A standard homeowners’ policy (or tenant insurance) doesn’t provide coverage in the event of flood damage. While government relief may be available for uninsurable damage, that relief is often slow to materialize and insufficient to cover the cost of repairs, leaving families to pick up the pieces.
You may be able to purchase flood insurance—known as overland coverage—if you don’t live in a flood-prone zone. You’ll also likely have to buy sewer backup coverage separately.
But what about floods that are not caused by natural disasters? What about those resulting from burst pipes or cracked foundations or, in your case, Alison, a leaky washing machine?
In general, standard (also known as comprehensive) homeowners’ insurance may help cover water damage if the leak is sudden and accidental. Keep in mind, in order to be considered accidental, the flood cannot have occurred when the home was vacant for more than 48 hours (some insurance providers use a stricter 24-hour rule). So it’s important to have a trusted friend or family member check on your home every day or so if you’re away on vacation or living elsewhere for extended periods of time.
But what about slow leaks whose damage only becomes clear over time? These situations are less black and white. While most policies won’t cover damage resulting from poor maintenance—for instance, damage from a toilet you failed to repair—that doesn’t mean that all slow leaks are denied coverage.
What follows should help you understand when damage resulting from a water leak is likely to be covered by insurance.