Why Insurance Companies are Now Offering Enhanced Water Damage,Â Surface Water and Groundwater Coverage
Insurance companies across the country must improve their products in response to the latest consumer issues. We’ve recently seen examples of this process taking effect with several of Canadas leading insurance companies now offering enhanced water damage, surface water, and groundwater coverage to consumers. Within this post, we’ll explain why so many companies are now extending their water protection plans and what this means for consumers.
Water Damage the Leading Cause of Insurance Claims
The latest data shows 40% of all home insurance claims are the result of water damage. And between 2002 and 2012, the average cost of water damage claims to insurance companies rose 117%. The data also correlates the increasing number of water damage events in and around Canadian homes with an increase in the frequency and severity of precipitation across the country. Its part of the reason that the Insurance Bureau of Canada recently paid for accurate flood maps to showcase the potential for extensive water damage within particular areas of the country.
Insurance Companies Forced to Act
In recent years, consumers might have assumed that their flood damage insurance would have covered areas such as surface water and groundwater damage. But most basic policies were not designed with this level of comprehensive coverage in mind. Basic policies might only cover sewer backups that impact the homeowners property. This causes a disconnect between the consumer and the homeowner and risks damaging the reputation of insurance companies.
Insurance companies such as Intact are now taking a leading role in helping consumers recognize the potential damage that water can have within their home. With their enhanced water damage, surface damage and ground water coverage policy, Intact insures homeowners against direct physical loss resulting from a groundwater flood.
It also provides additional coverage for any mass evacuation resulting from the flood. Wawanesa Insurance is also taking a proactive stance on water damage claims by offering an extended sewer backup coverage service that assures comprehensive property protection for the homeowner. Consumers are now required to consider their water damage coverage needs more closely. With the increase in precipitation and the rising cost of insurance claims, consumers can work together with their insurance company to ensure they’re completely protected for the coming years. To learn more about this topic, call our insurance experts directly