Are you a home owner and planning to buy home insurance in Calgary? If yes, then do remember that if your home has a basement and you live in an area that is prone to floods, or lies in a flood-endangered zone, then you need to get a separate overland flooding coverage, in addition to your standard home insurance policy.
What is overland flooding?
From the perspective of the insurance company there are different types of flooding in Canada and overland flooding is one of them.
Characteristics of overland flooding:
– It has an origin outside your house.
– It can enter your house from different places such as the basement, windows, doors, walls and even from the house foundation.
– It is caused due to elements of nature such as rising river level, heavy rains, melting snow etc.
What is the relevance of overland flooding in home insurance in Calgary?
As per data available with the Insurance Bureau of Canada, most homeowners, in fact almost 90% of them are actually unaware of insurance details related to overland flooding, and are unsure whether or not their existing home insurance policy covers it.
As a result, when there is an incidence of overland flooding occurring on their property and they lodge a claim with their insurance company, their claim gets rejected. The reason is that overland flooding is not included in a standard home insurance in Calgary.
Hence, it is important that as a homeowner, you purchase additional coverage for overland flooding by getting an endorsement done in your existing or new home insurance policy.
Do all homeowners need overland flood coverage?
No, all homeowners do not need overland flood coverage. To calculate your exposure and whether you actually require coverage or not, your insurance company will assess the risk associated with your property and determine to which of the following three categories you belong:
– Low risk:
You can get overland flooding protection (also called overland flooding endorsement) for a low price and this policy will have an extensive coverage.
– Medium risk:
You can get the protection here too, but the limits might be lower than in the previous case, and the coverage will be more expensive.
– High risk:
You might face a challenge to get this coverage due to your neighborhood falling in an area that has a history of flooding and is classified as a high-risk home insurance case.
My home insurance provides coverage for water damages. Do I still need a separate cover for overland flooding?
Yes, it is required. Do not be fooled with the wording. It is very important read the fine print in the policy document and if required, to seek clarifications.
It is here that Beneficial Insurance Solutions provide their valuable advice and guidance. They work with homeowners throughout Albertan cities and help them make the right decisions related to home insurance.
For example, they will guide you that water damages refer to incidents that originate inside your house. These incidents could be caused by burst pipes, broken faucets, malfunctioning taps, and incorrectly sealed pipes. These damages are covered by standard home insurance in Calgary and are different from the damages cause by overland flooding, for which you still need a separate coverage by paying extra premium.
What precautions do I need to take to protect my property from overland flooding?
By taking some easy and simple steps, you can protect your property from potential damage:
– Short-term actions:
o Point the direction of downspouts away from the house foundation.
o Take your valuables out of the basement.
o Ensure that sump pumps are working and you have a backup in case the power goes out.
– Long-term actions:
o Renovate your house with flood-resistant materials.
o Raise the level of electrical box and heating materials to the second floor.
Conclusion:
As a homeowner, you are in the best position to assess your needs and determine your exposure to risks. It is a best practice to get adequate insurance cover to protect your property in the case of an incidence happening.
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