Did you know that most flood claims come from homes outside designated flood zones? Flash rains, ice damming, and even faulty gutters or window wells can lead to costly water damage. In fact, according to Ratehub, the average cost to repair a flooded basement exceeds $40,000, and residential flooding costs Canadians over $2.9 billion annually.
The True Cost of a Flood
If these figures seem high, take a moment to consider what’s in your basement or first floor (if you don’t have a basement). Now, imagine the cost of repairing or replacing those items. When water rushes in, what would you lose?
Even an Unfinished Basement Holds Value
Even if your basement isn’t fully finished, the value of essential equipment can add up quickly. Key systems in your home that could be affected include:
- Washer and dryer
- Water heater
- HVAC unit and boiler
- Water softener
Replacing and installing these items can easily cost thousands of dollars. Plus, you’ll need to act fast to remove water and dry out the area before mold sets in. Hiring a professional cleanup service is often necessary and may even be required by your insurance policy to mitigate further damage.
Finished Basements = Higher Risk
If you have a finished basement, the financial impact of flooding can be even greater. Beyond the essential home systems, you’ll need to consider the cost of replacing drywall, flooring, furniture, and personal belongings. To ensure full protection, homeowners should consider adding a flood coverage endorsement and setting limits high enough to cover the cost of rebuilding the entire space.
Don’t Assume You’re Safe Because You’re Outside a Flood Zone
Many homeowners mistakenly believe they are safe from flooding if they live outside a designated flood zone. However, heavy rains can quickly saturate the ground, forcing water toward your home—especially if your property grading directs water toward the foundation.
It’s important to note that most standard homeowners’ insurance policies do not cover flooding caused by external water sources. Even if your situation doesn’t seem like a typical flood event, your standard policy may not offer protection.
Talk to Your Insurance Broker Today
Protect your home before disaster strikes. Contact your insurance broker for a review of your coverage, including flood protection options. Pay special attention to limits, exclusions, and coverage for flood cleanup and remediation. Setting the right coverage limits now can save you thousands in unexpected costs down the road.
Don’t wait until it’s too late—ensure your home and valuables are protected with the right flood coverage today.
