Is a flooded basement covered by insurance in Ontario?
The short answer is that it depends on where the water came from, and the three common sources are covered three different ways on a standard Ontario policy.
This is general information, not advice on your specific policy. Your declaration page and your broker are the authority on what you actually hold.
Burst pipes and failed appliances: usually covered
Sudden and accidental escape of water from plumbing, heating or an appliance is covered under most standard Ontario homeowner policies. A burst supply line, a split hot water tank or a failed washing machine hose normally falls here.
The word that matters is sudden. Damage from a slow leak that has been going on for months is often excluded as gradual damage or lack of maintenance, which is why documenting the burst itself matters.
Sewer backup: only with the endorsement
Water coming up through a floor drain or a toilet is sewer backup, and it is not included in a standard policy by default. It is a separate endorsement you have to have purchased.
If you have it, cover typically includes the cleanup, the damaged contents and the restoration. If you do not, the loss is yours. Check your declaration page for wording such as sewer backup or water and sewer backup endorsement.
Overland flood: another endorsement again
Water entering the building from outside during heavy rain or a spring thaw, running across the ground and in through a window well or a door, is overland flood. This became available in Canada relatively recently and is also a separate endorsement.
A single storm can produce all three at once, which is why adjusters care so much about where the water started.
What is usually excluded
Seepage through a foundation wall over time, groundwater pressure, and damage traced to poor maintenance are commonly excluded. So is damage that got worse because the owner did not act promptly, which is why insurers expect you to mitigate.
What to do to protect your claim
Photograph everything before anything is moved. Report it to your insurer promptly. Keep receipts for emergency expenses. Do not throw damaged items out before the adjuster has seen them or they have been documented.
Have the restoration contractor document the loss properly from day one, with moisture readings and a written scope. An adjuster is far quicker to settle a claim that arrives with evidence attached.
Who pays the restoration company
We bill your insurer directly in most cases, so the only money you hand over is your deductible. We document the loss to the standard adjusters work from and field their questions ourselves.
Common questions
Is sewer backup covered by home insurance in Ontario?
Only if you carry the sewer backup endorsement. It is not part of a standard policy by default. Check your declaration page or ask your broker.
Is rain water in the basement covered?
Water that ran across the ground and into the building is overland flood, which is a separate endorsement. Water that came up a drain is sewer backup, which is a different endorsement again.
Will making a claim raise my premium?
That is between you and your insurer and depends on your history. What is certain is that an undocumented loss left to worsen is harder to claim later, and mould that develops from it is often excluded.
What is a deductible on a water claim?
The amount you pay before cover applies, commonly between $500 and $2,500 on Ontario policies. When we bill your insurer directly, the deductible is generally the only amount you pay us.
Does insurance cover mould?
Usually only when the mould results directly from a covered sudden loss and was addressed promptly. Mould from long-term seepage or neglect is typically excluded, which is another reason the first day matters.