On July 16, 2024, residents in Toronto and across the GTA faced devastating flash flooding that led to prolonged power outages and nearly $1 billion in insured damage to personal property, including homes, businesses and vehicles. The massive flood contributed to the more than $9 billion in insured losses recorded in 2024 – the most destructive year for insured losses in Canadian history. The speed and intensity of the floods serve as a stark reminder of nature’s destructive power – and the critical need to mitigate risk before disaster strikes.
“Insurers were there for their customers – and always will be – but this event reminds us all of the importance of being prepared for the worst,” said Amanda Dean, Vice-President, Ontario and Atlantic, Insurance Bureau of Canada (IBC). “Flash floods, like wildfires, can often occur with little to no warning. Taking proactive steps to prepare for a severe weather event is not only important for your personal safety, but for your financial security. IBC wants to ensure residents across Ontario are fully prepared for the potential hazards posed by extreme weather events this summer.”
IBC’s top 10 tips to help protect your property from flood risks and water damage:
Make sure downspouts are clear of debris and that they direct water away from your home to help prevent basement water damage.
Keep the floor drains inside your home and the storm sewer grates on your street clear of obstructions. Consider installing a backwater valve, after consulting with a professional to assess your home’s location & eligibility.
Move valuable items out of your basement to higher levels in your home.
If you have a sump pump, ensure that it is working properly and has a backup power source.
Have someone check your property regularly if you are away from home for an extended period.
If you need to drive during or after a storm, drive according to the conditions and do not drive on flooded roads.
Ensure proper lot grading. Consult with a landscaping professional about building up the ground around your house so that water will drain away from basement walls. Consider using rain barrels to help hold and manage excess rainwater around the property.
During periods of heavy rainfall, limit water use in your home (this includes limiting use of appliances such as dishwashers and laundry machines).
If flooding is imminent, shut off electricity to the areas of your home that may be affected. Use sandbags, or install flood shields or built-up barriers, to stop water from entering through basement windows and doors.
Consider raising large appliances, such as the furnace and the hot water heater, off the basement floor on wood or cement blocks. This should be done by professionals well in advance of potential flooding. If a flood is imminent, consider anchoring these appliances and protecting them with a floodwall or shield.
Every policy is different. Know what your insurance covers.
Overland flood coverage is optional and typically covers specific types of water damage, such as damage resulting from the overflow of lakes, ponds or rivers; surface water from heavy rainfall or melting snow; and groundwater or the rising of the water table, causing water to enter a home at the ground level or by seeping through windows, doors and walls. Homeowners are encouraged to reach out to their insurance representative with any questions about their policy.
Damage to vehicles from wind or water may be covered if you purchased the optional coverage (comprehensive and/or collision) as part of your policy. Check with your insurance representative to see what coverage you have.
Water damage in a basement due to a sewer backup is only covered if you have purchased specific optional sewer backup coverage.
Subject to any applicable exclusions, the contents of your refrigerator and freezer may be covered for damage related to food spoilage caused by an accidental power interruption. In this situation, your fridge, freezer and their contents may be insured for a specified amount. Check your policy.
In certain circumstances, homeowners who are unable to stay in their homes because of insured damage may be entitled to additional living expenses. Check with your insurance representative to find out what your policy covers.
“Severe weather is getting worse and while there are steps consumers can take to help mitigate risk and damage, governments also have a major role to play to protect Canadians. This includes no longer building unprotected homes and businesses in high-risk flood and wildfire zones, enhancing flood defences in communities at high risk of flood, helping homeowners understand their risks, subsidizing home retrofits to help homeowners reduce their exposure to floods and wildfires, and investing in improved emergency preparedness, response and recovery capacity,” added Dean.
Infrastructure improvements can also play a role in tackling risk, e.g. bridge and sewer enlargements mostly undertaken by municipalities. In addition, Ontario’s conservation authorities (CA) provide vital weather and flood forecasting warnings. Visit the Flood Forecasting and Warning Program website for information from local CAs.
Consumers with general questions about insurance are encouraged to reach out to IBC’s Consumer Information Centre at 1-844-2ask-IBC (1-844-227-5422) or ConsumerCentre@ibc.ca.
For additional tips and information on how to protect your property from various perils and weather events, visit IBC’s Severe Weather Safety web resources and/or watch IBC’s Stay Protected video series on its YouTube channel.
