Why Should I Care about Flood Coverage?

Most people don't. 

It feels like a boring thing to discuss when it's not happening to you, and let me confirm that as a 'conversation starter' it doesn't play well at parties.

BUT YOU SHOULD STILL KNOW ABOUT IT! 
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Read for a couple minutes. Leave more informed.

“45% of Canadian homeowners with a ground-level home think they have flood insurance as part of their regular home insurance policy, and 26% don't know if they have it or not.” link

HERE’S WHAT IT IS. ​

It covers your house/cottage/apartment/rented property against freshwater flood incidents. 

You'll sometimes see it as 'overland water' or 'above-ground water' coverage and it's actually a new thing for Canadians.

The offering itself has been around forever for commercial properties, but was never available for residential property until a couple years ago.  

THE REASON FOR IT.

Water claims are a huge deal in the industry since they're on the rise both in frequency and severity.
If you've ever seen a flooded house you know you can't just throw down a new area rug and open the windows up.  

A soaking wet house may need a FULL tear out of the interior walls. 
Some SERIOUS drying equipment. 
ALL your stuff is going to be gross, so that's gotta be replaced.
You need to LIVE somewhere while this is all happening...
AND you still need to get it rebuilt. 

These things are a fortune.
Believe me you want help if it's available.

WHY YOU SHOULD CARE.

Climate change is not fake news. 

Look at what's happening right now in New Brunswick. link
Worst flooding in 80 years. 
 
Sydney,NS in October 2016. link
225mm of rain in one storm.

Some of those homes were BULLDOZED from the damage. 
Not having enough or ANY coverage for an event like this would be devastating. 

AN EASY FIX.

1) Most people can get coverage. 
2) It may not cost you anything extra. 
3) You might even have coverage already. 

Lots of companies have versions of a 'personal lines flood endorsement'. 
Understanding WHAT is covered, and how MUCH you have is what's important here.

Take a look for any sub-limits that your policy refers to. This could limit your coverage in the event of an incident. 

The recommendation here is if you're shelling out money for the coverage, make sure the limit is adequate.

The bitterness of poor quality remains long after the sweetness of low price is forgotten.       - Benjamin Franklin

LEARN ABOUT IT.

Disclaimer: It's okay for people to pass on this coverage.

Many people have homes in flood-prone areas and for them to buy it, would be like taking out a second mortgage. 
THIS MAKES TOTAL SENSE.

What you SHOULDN'T do is assume everything is fine and then find your house filling up with water.  

REVIEW YOUR POLICY. 
CHECK YOUR OPTIONS. 
MAKE AN INFORMED DECISION. 

If this sounds awful, and you hate the idea of learning talk with your broker. 

It's their job to keep you informed.
MD