Overland water coverage applies to freshwater only — it does not apply to coastal or saltwater flooding. Three types of water damage insurance exist (basic, sewer backup, and overland water); each covers different events, and they do not overlap. Overland water coverage does NOT cover on-property events (burst pipes, overflowing appliances, damaged hot water tank, leaking roof, damaged pool or hot tub, broken waterbed — these fall under basic home insurance coverage). It also does not cover sewer backup damage (that requires sewer backup insurance), rain or snow entering through an open window, slow seepage over a long period, or any specific exclusions written into the individual policy.

Ontario insurance companies will typically refuse to provide overland water coverage for properties in high-risk flood zones. Why? Because they're high-risk, insurance companies aren't willing or able to take on that level of risk transfer.

The location of your property determines your eligibility for water damage insurance coverage concerning factors such as its proximity to lakes and rivers, as well as whether it's in a position to be exposed to additional risk. For example, suppose your property is on the side of a hill or mountain or right at the bottom, and the hill or mountain is often subjected to heavy spring run-off. In that case, the property is at a higher risk for overland water damage and, subsequently, overland water claims.

That doesn't necessarily mean there's no way for higher-risk properties to get overland water coverage. Ontario insurance brokers at Morison Insurance can find overland water coverage for you regardless of your risk exposure level, as it depends on the individual insurance companies. Our brokers work for our clients, not for the insurance companies, so we're committed to tracking down the right insurance that will suit your needs best, whatever they may be.

If you live in a high-rise—or even just a couple of stories above ground level— it's unlikely that your unit will be directly affected by overland water. That doesn't mean you're safe from its effects. It is possible that water from heavy rainfall or snowfall could accumulate on your balcony and seep into your house. Still, the more probable scenario is that the ground floor and basement of your building are damaged, which could mean that the building as a whole is not habitable until water damage restoration has occurred. In that situation, having an overland water coverage endorsement on your condo insurance policy would prompt your insurance provider to offer you insurance compensation for additional living expenses, such as the cost of a hotel or other temporary living arrangement, until you can live in your unit again.

If you live up on a hill, elevated well above any possible flood waters from a lake or river that has burst its banks, you're still at risk of damage that requires overland water coverage. Being on a hill doesn't offer you any protection from heavy rainfall or excessive snow and ice melt—and it may increase your risk of damage from spring run-off, depending on your property's position on the hill or mountain in question.

Insurance companies don't obligate you to have those measures in place before offering insurance options, such as overland water coverage. Preventative measures (sump pumps, backwater valves, basement window barriers, clear eavestroughs) are not required but may result in higher limits or a premium discount from some carriers.