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What is an Overland Water Endorsement?
May 20th, 2015 / FAQs - The Basics / emethod
Home, condo and tenant’s insurance policies typically do not include overland water damage coverage. Due to the increase in water-related weather events, many insurance companies are now offering optional coverage add-ons that are called endorsements. The overland water endorsement, which could vary from insurer to insurer, will usually protect you from losses resulting from damage caused by fresh water entering your home from the surface area.
What’s the difference between an Overland Water Endorsement and “flood insurance”?
May 20th, 2015 / FAQs - The Basics / emethod
Historically, the term flood in the Canadian insurance industry applies to water originating from a body of salt water, while overland water is defined as originating from fresh water bodies of water such as lakes and rivers. Flooding caused by any body of salt water such as a tsunami, tidal waves, currents, etc., is still excluded from insurance policies. The introduction of Overland Water Endorsements mean that fresh water flooding is now an insurable option in Alberta and other parts of the country. Overland water includes coverage for water damage resulting from excess rainfall and rising river waters.
How much does an Overland Water Endorsement cost?
May 20th, 2015 / FAQs - The Cost / emethod
The cost of adding an Overland Water Endorsement to your home, condo or tenant’s insurance policy depends primarily on your dwelling’s location. Just like your standard home insurance policy, rates are calculated based on your risk for an insurance claim. If you reside in a high risk flooding area, your rates will most likely be higher than those who live in low risk areas. For most people, Overland Water coverage is affordable and, in some cases, can even cost less than your Sewer Back-up Endorsement. The best way to know for sure is to contact one of our expert brokers who will be able to provide a quote right away.
What is covered by an Overland Water Endorsement?
May 20th, 2015 / FAQs - The Basics / emethod
Most Overland Water Endorsements will cover losses resulting from damage to your house, condo and contents cause by fresh water entering your home. This includes damage resulting from melting snow, excess rain, and overflowing riverbeds.
Is Overland Water Coverage available where I live?
May 20th, 2015 / FAQs - The Basics / emethod
Overland Water Endorsements are available to most homeowners, condo owners and tenants in Alberta, but a small percentage of dwellings will not qualify because the risk of flooding in that area is too high. The best way to determine your coverage eligibility is to fill out the form below and one of our expert brokers will contact you with more information.
Do I need both sewer back-up coverage and overland water coverage?
May 20th, 2015 / FAQs - The Cost / emethod
Yes, you will need both endorsements on your policy to be fully covered for water events. Sewer Back-up and Overland Water Endorsements work together to provide you with comprehensive coverage. After the floods of 2013, many insurance companies placed tighter guidelines and increased exclusions on sewer back-up coverage. One major exclusion, for example, is that if overland water enters your home causing flooding, your sewer back-up claim may be denied. By adding both a Sewer Back-up Endorsement and an Overland Water Endorsement to your insurance policy, you will have comprehensive coverage in the event of a claim.
Should I purchase an Policy with an Overland Water Endorsement?
May 20th, 2015 / FAQs - The Basics / emethod
Water damage due to the overflow of riverbanks and excessive rain has been an increasing concern for many Canadians, especially Albertans. In fact, it is well known in the insurance industry that changing weather patterns are resulting in a significant increase in weather related claims.
The 2013 Alberta flooding was an example of how unpredictable our environment can be. It is uncertain when flooding will occur again, but you can now purchase additional coverage for your home and contents and be protected from losses related to future weather events.
If your home is damaged by overland water from excessive rain, melting snow or an overflowing river, the repair costs could add up to tens of thousands of dollars. Overland Water Coverage is an affordable insurance add-on option to ensure you are covered for future fresh water flood claims.
How would I make an overland water claim?
May 20th, 2015 / FAQs - The Cost / emethod
Once you have added Overland Water Coverage to your insurance policy, you will be given a phone number for a claims hotline that is available 24-7 for your convenience. A claims representative will walk you through the process at that time.
Why should I contact floodinsurance.ca to purchase Overland Water Coverage?
May 20th, 2015 / FAQs - The Basics / emethod
Two of Canada’s top brokerages, Sharp Insurance and Rogers Insurance, have partnered to provide you with the most comprehensive fresh water flood insurance online resource available. Our expert brokers are here to give you advice, quotes and recommendations. Simply submit the online form and we will contact you to answer all of your questions and provide a free quote.
Why is this coverage being offered now?
May 20th, 2015 / FAQs - The Basics / emethod
Until now, fresh water disasters such as flooding were excluded from home insurance policies because the risk levels are so high. Insurance companies need to have a certain amount of funds available at any given time to cover catastrophic wide-spread claims such as damage due to severe wind and hail storms, tornadoes or fires.
When many homes are affected by a single event, the costs may be greater than the funds available to pay all of the claims. For example, if one insurance company in Calgary was responsible for covering all of the damages resulting from the 2013 floods, they would go bankrupt.
That being said, many insurance companies across Canada recognize the need to offer some form of protection for homeowners, condo owners, and tenants from losses resulting from fresh water flooding, and that offering is in the form of an Overland Water Endorsement.
