When torrential rain hit Susan Gammage’s Lincoln home, the power went out almost immediately. Her sump pump died with it.
She had been through this before — a basement flood about 15 years ago taught her to be ready.
She switched on the backup sump pump, but the sheer volume of rain was too much. The water kept coming.
When the storm was over, her basement was underwater. Her wall-to-wall carpeting saturated. Furniture ruined. Belongings destroyed.
Gammage spoke with her insurance agent.
She learned her standard policy — with no overland flooding coverage — would not cover the damage. The costs to repair the destruction will now come out of pocket.
She has arranged help to start clearing the space, moving furniture, ripping up the carpet and underpad. As for what comes after that, “I can’t even think.”
The longer-term repairs, such as reinstalling the carpeting and making the room habitable again, will have to wait.
“When I can afford it, I hope to be able to do that, it was a big loss,” said Gammage. “I just want the carpets out because it’s starting to creep everywhere. The smell is bad.”
For flooded residents, the back-to-back storms were a crash course in what their home insurance does — and doesn’t — cover. Experts say there are steps homeowners can take, through their insurance and around their property, to be better prepared for the next storm.
Susan Gammage is photographed in her flood damaged basement in Beamsville on Friday.
Julie Jocsak/St. Catharines Standard
Are you covered?
Many homeowners assume their insurance covers water damage. Standard policies only cover damage caused by a burst pipe or appliance malfunction. Overland flooding and sewer backup coverage must be added separately.
Overland flooding coverage protects against water entering a home from outside, coming down so fast the ground cannot absorb it and runs toward the home. Sewer backup coverage protects against water or sewage that backs up or overflows into a home through sewers, drains, septic systems or sump drainage systems.
Co-operators Group communications consultant Jarred Jones said that’s one of the most common misconceptions among clients. Many believe all forms of water damage are covered under a standard policy.
“This lack of understanding is something that can leave significant gaps in what is covered if a claim does occur,” he said.
Anne Marie Thomas, Insurance Bureau of Canada’s director of consumer and industry relations, said it’s important people understand what their policy covers.
She recommends taking the time to read policy documents rather than simply paying the premium and moving on.
“Check your policy before a disaster strikes to make sure that you have the coverage that you need,” she said.
However, not all insurance companies have the same underwriting rules. Thomas said it’s worth shopping around to ensure the right water damage insurance is available.
“Up until 15 years or so ago, you couldn’t even buy flood coverage, it wasn’t available. It wasn’t until the insurance industry saw these severe weather trends start to increase in frequency that they created this flood coverage,” said Thomas.
“We’re all becoming more aware that these kinds of weather events are becoming more frequent and more severe, so people are purchasing this coverage more than they ever did.”
Jones said it’s too early to tell if there has been a measurable increase in flood coverage in Niagara. But events like these are “stark reminders” of the importance of having the right coverage.
He also cautioned against a common misconception: that flood risks only exist for homes near major bodies of water.
“The reality is that surface water can affect homes well beyond floodplains areas,” he said.
To better understand the risks and details of a policy, Jones suggested homeowners ask their insurance representative what types of water damage are covered under their policy, whether overland flooding or sewer backup is included, what coverage limits and deductibles apply, and whether service lines such as underground water and sewer pipes are covered.
What happens to your premiums?
Significant weather-related events are driving up claims costs. Canadians are seeing a higher frequency of wildfires and unpredictability in wind and hail events — all of which contribute to increasing insurance costs.
But Thomas said an event like the Niagara floods doesn’t automatically mean local premiums will increase. Insurers look nationally when assessing whether claims costs are rising.
“I haven’t had a claim in over 30 years and my insurance still went up this year, so it’s about the total cost of claims is increasing, not a particularly region or a particular policy,” she said.
While she cannot speak for any specific insurance company, Thomas said typically having one claim in a three- to five-year period could impact premiums. In the case of back-to-back flooding, each company will make its own decision.
“Insurance is for things that are sudden and accidental and if you know this area floods every August, it is no longer sudden,” she said. “Insurance companies are not going to pay out tens of thousands of dollars every year for the same loss.”
After the flood
At times like these, Thomas said, misinformation can float around quickly. Homeowners need to understand what they can or cannot do.
If items in the basement are damaged, particularly where mould can grow quickly and pose a health hazard, remove them. Don’t wait for an adjuster.
“Don’t leave soggy, wet things in your basement because you’re not sure. An insurance company doesn’t want you getting sick,” she said.
Most insurance companies offer various water damage, but coverage limits vary. Thomas said don’t rely on a “great premium.” Instead, compare quotes to better understand what you’re buying before a crisis occurs.
Homeowners should also keep all receipts related to cleanup.
“If you have water damage coverage, your insurance company is likely going to reimburse you. Just salvage whatever you can and make a detailed list of everything that was destroyed and take as many pictures as you can,” she said.
More than insurance
Jones said climate action and adaptation require a “whole-of-society” approach. Homes and infrastructure need to be more resilient so they can withstand climate hazards and prevent losses.
That means understanding where and how homes are built. It means encouraging development in locations less vulnerable to climate-related disasters because “we can’t insure our way out of the climate risk issue.”
Thomas added that while insurance is part of the solution, it’s “not the whole solution.”
“We need better infrastructure, we need to have better land use planning,” she said.
“All levels of government have a part to play in making sure that we’re not building on flood plains, and we’re investing in modernizing wastewater infrastructure to ensure that cities can handle these types of rainfall events.”
Protect your home
Insurance may cover the damage, but it doesn’t prevent it. Even with mitigation tactics in place, as Gammage discovered, flooding can occur when there’s simply too much water. Knowing how a home is graded matters, said Thomas.
“Make sure the land slopes away from your foundation so that if water does come down hard, it drains away from your property, not toward your property,” she said.
Janis Fedorowick, principal of Wavefront Planning and Design, said small changes around a property can make a difference before the next Niagara storm.
Window wells were not designed for extreme rainfall volumes. When overwhelmed, excess water runs down the concrete walls or into basements. Fedorowick said planting shrubs close to window wells can act as a natural buffer against direct rainfall.
Heavy rainfall can also cause lawn ponding that overflows into window wells. Fedorowick suggested creating small drainage channels to direct water away — but cautioned water cannot legally be redirected onto a neighbouring property.
Homeowners are responsible for managing drainage on their own lot.
She recommended checking how much topsoil is on the lawn. Properties usually have only an inch or two over hard clay, with little room for absorption. Replacing shallow topsoil with six to eight inches can give rain somewhere to go, but an individual assessment is recommended.
For Gammage, lessons around insurance policies came too late.
“I would urge people to look carefully at their policies and make sure they have catastrophic water flooding insurance. Pay extra for it because this is going to be our reality,” she said.
“Climate has changed. It’s not climate change. It changed.”