policyholders who live in low-risk areas will automatically receive coverage from a specific type of water damage thanks to a new flood coverage endorsement, at no extra charge.
The new Endorsement 16d refers to coverage for overflowing waterways or dam breaks.
With an additional premium, clients living in medium-risk areas can also receive the new coverage, a release said.
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“We listened to our customers and designed this coverage with them in mind. We want to help people avoid unpleasant surprises because dealing with water damage is already difficult enough,” said Desjardins General Insurance Group president and COO Denis Dubois. “Our flood coverage has fewer exclusions than the protections offered by the majority of our competitors. It’s free for most clients and remains optional for policyholders who would have to pay for it. This gives clients the flexibility to adapt their coverage to suit their needs and their reality,”
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According to a company release, a total of 95% of Desjardins policyholders can benefit from the new flood coverage; 80% of these policyholders insure properties in low-risk areas, while 15% are in medium-risk areas.
Customers of Desjardins Insurance, The Personal and State Farm Canada will have access to the cover.
Desjardins noted that a minority of Canadians live in areas with a higher risk of flooding, and that they do not have access to adequate insurance coverage; the company underlined that it also wants to help these affected individuals with their coverage needs.
“We’re continuing to work with the industry and the federal government to help make it easier for all Canadians living in high-risk areas to get insurance and minimize the number of homes without adequate coverage,” Dubois explained.
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