What Is Overland Water Coverage?

When you shop for home insurance, there are so many options, and it might feel a bit overwhelming. Luckily, Billyard Insurance Group is here to help! In the buying process, your broker may offer water damage insurance, and you may not be sure of what it covers or if it’s even necessary. That’s why we are here! In this blog, we will discuss Overland Water Coverage to help you make an informed decision about your home insurance policy.

 

WHAT IS WATER DAMAGE COVERAGE?

Before we discuss overland water coverage, you should understand that most home insurance policies in Canada usually include some basic coverage for water damage caused by sudden and accidental water escape. Examples may include damage caused by certain weather events, water main breaks, leaking pipes or roofs overflowing from household appliances, and swimming pools. Your broker will be able to explain your policy’s water coverages in detail.

WHAT IS OVERLAND WATER?

Overland water definition:

In the insurance world, overland water, meaning water that flows above ground, applies to the following:

• Overflow of any body of freshwater, such as lakes and rivers
• Sudden accumulation or run-off of surface waters (torrential rainfall & rapid snowmelt)

Note: Overland water does not include saltwater flooding, such as coastal water, tsunamis, waves, and tidal waves.

When overland water enters your home through windows, doors, or other ground-level points of entry, it can cause extensive property damage. This damage creates a huge inconvenience and can cost thousands of dollars to repair and replace your belongings. Overland water can also make your house or apartment inaccessible and unlivable while it is flooded or being fixed.

WILL OVERLAND WATER AFFECT YOU?

Assessing your risk for overland water damage involves considering several factors. Your home's location plays a crucial role in determining the risk of overland water damage. Areas near rivers, lakes, or regions with high annual rainfall are naturally at a higher risk. Low-lying areas or places prone to rapid snowmelt/spring thaw can also be more susceptible. Reviewing historical data on local water-related incidents can provide insights into how often overland water events have occurred in your area. 

Additionally, environmental changes such as urban development, deforestation, and climate change can impact water levels and increase the likelihood of flooding. 

Finally, conducting a thorough assessment of your home’s vulnerability can help mitigate risks. This includes checking the condition of windows, doors, and other potential entry points for water. Ensuring proper grading to direct water away from your home’s foundation and maintaining drainage systems can also reduce risk.

WHAT IS OVERLAND WATER COVERAGE?

Now that you know about the risk of overland water damage, it’s time to address an important question: What does overland water insurance cover, and is it already included in my standard home insurance policy?

Claims that involve overland water are not included in a standard homeowner's policy. When you add overland water coverage, meaning above-ground water coverage, to your policy, it would pay to repair damage to your home and contents from this type of water only, minus the deductible you select on your policy (What is a deductible?). These are some situations where you may be covered by overland water coverage:

Example 1: You rent a space in a high-rise apartment, and a nearby river overflows, making your building inaccessible. Overland water coverage would ensure that you will have the funds to temporarily relocate while the flood subsides and the apartment building is repaired.

Example 2: Several days of spring rainfall causes water to seep in through your basement windows. Overland water coverage would provide funds for home repairs, and replacement of irreparably damaged personal property. This endorsement would also give an allowance for additional living expenses if your home is inhabitable during repairs.

Overland water coverage is optional and can be added to your home, tenant, or condo insurance package with an overland water endorsement. However, it isn’t a stand-alone coverage; it usually must be purchased in tandem with sewer backup coverage. A BIG broker will be able to give you a better idea of available coverages and eligibility.

 

DO I NEED OVERLAND WATER COVERAGE?

With Canada's ever-changing climate, freshwater floods are the most frequent natural hazard. Whether you rent or own, the minimal cost of this endorsement on your policy will far outweigh the costs of repairing damage, replacing valuable contents, and paying for alternative living arrangements.

Speak with a broker to learn if you qualify for this coverage, as there are some limitations for homes in a high-risk flood zone.

 

HOW MUCH DOES OVERLAND WATER COVERAGE COST?

The cost of overland water coverage can vary widely based on several key factors. One of the primary considerations is property location. Homes located in areas with a high risk of flooding, such as near rivers or lakes or in regions prone to heavy rainfall or rapid snowmelt, will generally face higher insurance premiums.

Another significant factor is the value of your home and its contents. Higher-value properties and those with expensive contents will require more coverage, leading to higher premiums. The overall level of risk associated with your area, including the frequency of past overland water incidents and environmental factors, will also influence the cost. 

 

HOW DO I COMPARE OVERLAND WATER COVERAGE WITH STANDARD WATER DAMAGE INSURANCE?

Overland water coverage includes damage from fresh water flowing above ground, such as overflow from lakes and rivers, torrential rainfall, and rapid snowmelt. It covers instances where water enters your home through ground-level points like doors and windows. 

Standard water damage insurance, on the other hand, includes damage caused by internal water sources such as burst pipes, leaking appliances, or plumbing issues.

 

HOW TO PREVENT OVERLAND WATER DAMAGE

Aside from having the peace of mind from overland water coverage, there are also some measures you can take to try to prevent flooding in your home. Read our blog How to Prevent a Flood for helpful flood prevention tips.

 

SECURE THE RIGHT HOME INSURANCE COVERAGE FOR YOUR PROPERTY TODAY

With a better understanding of overland water coverage, we hope that you can make an informed decision. If you’re looking for reliable and cost-effective home insurance that doesn’t compromise on coverage, you have come to the right place! With access to many insurance companies across the country, our brokers can get you a quote in just a few minutes. 

Contact us for a free, no-obligation quote to see how much you could be saving on your home insurance.