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Flood Insurance, Water Damage & Your Home Insurance

Nov 13, 2012 8:41:00 AM

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water damageDid you know: Insurance companies generally do not offer flood insurance as part of your home insurance policy. If a house is built on a flood plain you accept the flood exposure and it isn't insurable. Unfortunately, heavy rains and high runoff have caused flood situations in areas prevously not considered a flood exposure.

To address flood loss situations governments have provided emergency funding. The claim has to be reported to the insurance company, wherein the claim is denied as an excluded flood claim, and then the government may provide assistance.

Water damage that is sudden and accidental such as a sink overflowing and causing damage is usually covered. Your deductible will apply in this situation. If you didn't have proper insurance and were found responsible you will likley receive the repair bill. 

In the case of a condominium the corporation insures the building but will not provide coverage for personal items or additional living expenses. Improvements and betterments in your unit also need to be insured personally.

So what can happen in a claim when there is water damage? There have been two recent decisions in the B.C. Supreme Court, Strata Plan KA 1019 v. Keiran 2007 and Mari v. Strata Plan LMS 2835 2007.

If the water damage is to common property and to an original fixture such as the flooring then the corporation's property policy covers the claim. However, the owner of that unit may be held responsible for the damage that caused the claim and so will be assessed the deductible. A deductible for a corporation can be $10,000 or $25,000. If this is the case then you do have a consideration within a condominium unit owner policy to pay for assessments such as the deductible.

The ruling in the case of Mari and Kieran is that even when the property damage is caused not by the fault or negligence of an individual unit owner but simply due to defective plumbing or a malfunctioning appliance, that the condominium unit owner may still be held responsible for the damage. The condominium unit owner will be required to reimburse the condominium corporation for the deductible portion of the insurance claim.

Whether living in a house, an apartment or a condominium you need to know what your insurance policy provides. We always recommend doing what you can to prevent water losses, after that review and know what your insurance policy does and does noes not cover. -Property Insurance Explained

Also see -Property Insurance Tips and Review 

If you haven't reviewed your Property Insurance policy in the last year or so, contact us and An ARMOUR Insurance Professional will make sure you're covered.

Bill Reay

Written by Bill Reay


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