Spring flooding and home insurance: Are you really covered?

This article was originally published on June 18, 2017 and was updated on March 28, 2025.

Is your home really protected from spring flooding and water damage? In some cases, yes. You're probably covered if your dishwasher goes wonky and floods your kitchen or you forget to turn the faucet off in your bathroom. But if your basement was damaged because it rained for six days and the nearby river overran its banks, you might be out of luck. The cause of the water damage matters when it comes to home insurance in Canada. 

As the spring season arrives, so does heavy rain, rising water levels and an increased risk of home flooding. Unfortunately, many homeowners assume their home insurance will cover flood damage, but that’s not always true. 

To protect your house, it's necessary to become familiar with your policy and know what you’re covered for. Learn how flooding and home insurance work together and whether or not you have enough coverage.

Understanding flood insurance in Canada

Unfortunately, severe weather is becoming more and more common. The summer of 2024 was a challenging one in Canada. Four weather events alone resulted in over 220,000 insurance claims–a 406% increase compared to the previous 20-year average. In its entirety, 2024 became the most expensive year in Canadian history for insured losses, totalling $8.5 billion. 

Despite this increase in severe weather and the resulting damage (or because of it), most home insurance policies do not include flood protection. 

Instead, insurers allow policyholders to buy endorsements or optional add-ons that cover specific risks, like sewer backup damage. That way, if heavy rainfall overloads your sewer line and its dirty contents enter your basement, your insurance will pay for repairs. 

Tip: Installing a backflow prevention valve, which automatically closes if sewage backs up from the main line, will likely qualify you for reduced endorsement premiums.

After the 2013 Alberta floods and torrential rains in southern Ontario, Canadian insurers began developing a new coverage — overland water insurance for residential properties. Two years later, in mid-2015, the first Canadian insurer began to offer it as an endorsement.

Here’s a breakdown of all the flood insurance endorsements that you may want to consider for your home insurance policy:

Also read: Should you buy flood insurance in Canada?

In some cases, homeowners living in areas with a high risk of flooding do not have the option to purchase flood insurance or may be subject to costly premiums. According to the Insurance Bureau of Canada (IBC), 10% of households in Canada are at risk of flooding but don’t have access to insurance.

National Flood Insurance Program

In response to the increasing floods and the high number of uninsured Canadians, the Government of Canada announced plans to develop a National Flood Insurance Program in March 2023. 

The program intends to make flood insurance available to all homeowners in Canada and make coverage affordable. The Government will subsidize premiums for Canadians living in flood-prone areas, who would otherwise face high rates. The program is planned to launch in Spring 2025. 

Also read: Everything you need to know about Canada’s National Flood Insurance Program

Spring cleaning tips 101

1. Review your home insurance policy

As the winter season fades into spring, now is the perfect time to review your home insurance to ensure you have the right coverage. Here’s what you should consider while reviewing your policy:

• Are there any gaps in coverage? Double-check if your policy includes a flood insurance endorsement. If not, consider adding the additional coverage. Remember, flooding and home insurance aren’t always a given.
• What is the cost of your deductible? Review your deductible to determine what you’ll be responsible for in case of a claim. 
• Does your coverage have any waiting periods? If you’ve recently renewed or updated your policy to include floods, you may have to wait a set period of days before it takes effect.

• Has your rate increased? Home insurance in Canada is only getting more expensive, but shopping the market at or before your renewal can help you find your best rate.

Reviewing your policy before peak flood season begins could be the difference between a stress-free spring and one with a flooded basement.

2. Take action to protect against spring floods

Even with insurance coverage, reducing flood risks could save your home from avoidable water damage. Steps you can take include:

• Installing a sump sump
• Clearing your rain gutters
• Sealing cracks in your basement or foundation walls
• Taking valuables off the ground and storing them in safe places

Also read: Spring cleaning: Home insurance tips for severe weather

The bottom line

Spring flooding can cause real damage to your home. However, being prepared and proactive about your home insurance coverage can help you avoid the consequences of severe weather, like heavy rain, rising water levels, and melting snow after a storm. 

Don’t wait until it’s too late! Review your home insurance policy today to protect against spring floods. 

Also read: 

• Does home insurance cover water damage?
• How to prevent water damage to your home in winter
• What is a weeping tile and how does it protect your home?
• Climate change and its impact on your insurance