Basement flooded in a Niagara winter: will my home insurance pay?
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A few mild days between December and January melt the snow, but frozen ground can't absorb it. The water runs along the foundation into the basement.
- 01A rental basement leaked twice
- 02Second claim denied as long-term seepage
- 03Limited claims over several years, not same spot
Furniture and appliances need the tenant's own insurance. One tenant found it would have cost roughly ten dollars more a month.
- 01Shut off the main water valve
- 02Cut power near wet outlets
- 03Photograph and list every wet item
- 04Call your insurer right away
- 05Get a restoration company to dry it
- 06Keep every receipt, even if denied
Health Canada notes mould can grow within 48 hours. Photograph items and check with the adjuster before tossing them.
Ask your broker for a review, then use the insurer's complaint process. After that, try the OmbudService or FSRA. Big claim? Talk to a lawyer.
Your policy wording is what counts. Tell Yifei what happened and he can help you sort out next steps.
Ask YifeiWhy this matters in a Niagara winter
Niagara winters come in waves. Between December and January there are often a few mild days when the snow melts but the ground is still frozen. The water can't soak in, so it runs along the foundation looking for a way into the basement. During cold snaps, pipes along exterior walls can freeze and split. Yifei's uncle learned this the hard way: a winter's worth of snow piled up in the yard, and when it melted, the basement flooded.
How insurers usually treat each kind of water
Your own policy wording is what counts. If you're unsure, ask your broker.
What Yifei has seen
A landlord's rental basement leaked twice. On the second claim, the insurer said no. The denial letter described long-term seepage from above grade, with cracked and previously patched exterior concrete. The insurer's representative also said there's usually a limit on how many claims they'll pay over several years, and not for the same spot twice. The landlord had only patched the foundation cracks the previous times.
In another house, the previous owner had lived there almost 30 years without a problem. When one corner took on water, insurance paid part of it and the premium didn't go up.
One thing landlords often miss: the tenant's furniture and appliances aren't covered by the landlord's policy. That's what tenant insurance is for. One tenant had ground water coverage and claimed through their own insurer. Another didn't, and found out it would have cost roughly ten dollars more a month.
If water gets in, do this in order
- If it's a pipe inside, shut off the main water valve, usually in the utility room. If water is near outlets or appliances, cut power to that area at the breaker panel and don't touch anything electrical while standing in water.
- Take photos and video: water level, wet items, water lines on the walls.
- List everything that got wet: furnace, water heater, washer, drywall, doors, stairs. Photograph items and check with the adjuster before throwing them out, but don't leave wet carpets and cushions sitting; Health Canada notes mould can start growing within 48 hours.
- Call your insurer right away, since policies set time limits for reporting a loss, and wait for the adjuster to assess the damage.
- Get a restoration company in to pump out and dry. On one job, cutting out the wet drywall took a few days, then the walls needed several weeks to dry before repairs. Plan for that time.
- Keep every receipt, even if the claim is denied; you'll need them for a review.
Frequently asked questions
My claim was denied. What can I do?
Read the denial letter for the exact exclusion. Ask your broker to request a review. If that doesn't resolve it, go through the insurer's own complaint process and get its final position in writing. After that, you can turn to the independent General Insurance OmbudService or to Ontario's regulator, FSRA. Follow the steps on FSRA's website, and for a large claim, talk to a lawyer.
Do I have to disclose past basement water when I sell?
Yifei's advice is to be upfront and include repair receipts. In offers, Yifei writes it as "to the best of the seller's knowledge" rather than promising the basement has never leaked. For what you're legally required to disclose and how the contract should read, ask a lawyer.
What can I do this winter to lower the risk?
Test the sump pump before the snow, clean the eavestroughs, extend downspouts away from the foundation and drain outdoor taps. The full list is in What winter home maintenance does a house in Toronto or Niagara actually need?
For advice on your own situation, reach Yifei (RE/MAX) at efay.ai.
Sources
- Health Canada, moisture and mould: https://www.canada.ca/en/health-canada/services/publications/healthy-living/addressing-moisture-mould-your-home.html
- Financial Consumer Agency of Canada, home insurance: https://www.canada.ca/en/financial-consumer-agency/services/insurance/home.html
- FCAC, unexpected events and disasters (sewer backup, overland water): https://www.canada.ca/en/financial-consumer-agency/services/insurance/unexpected-events-disasters.html
- FCAC, making an insurance claim: https://www.canada.ca/en/financial-consumer-agency/services/insurance/make-claim.html