A slow-moving nor'easter that has battered the US Northeast is forecast to bring rain, wind and coastal flooding to parts of Atlantic Canada into early this week. The storm puts the line between covered wind damage and excluded coastal flooding back in front of brokers' clients.

In the US, the storm left more than 90,000 customers without power across six states on Sunday, according to outage tracking data, with the heaviest impacts on Long Island, coastal Connecticut and the New Jersey shore. The US National Weather Service expected the system to stall near the coast on Sunday night before drifting slowly east on Monday as it weakens.

The Weather Network has forecast unsettled weather for Atlantic Canada through Tuesday, with gusts of up to 60 km/h possible in coastal Nova Scotia and a risk of coastal flooding in exposed areas.

Wind is covered, surge usually is not

Wind damage, including falling trees and flying debris, is generally covered under standard home and commercial property policies. Damage caused by storm surge or coastal flooding is treated differently. It is typically excluded under standard policies in Canada and, unlike overland flooding from rivers or heavy rain, is rarely available as an optional endorsement.

The distinction matters most at the waterline. A home that takes on water because wind drove rain through a damaged roof is in a different position from one flooded by seawater pushed ashore, even when the damage looks similar. Where both perils are at play in the same loss, brokers should expect disputes over which caused what.

For vehicles, comprehensive or all perils coverage responds to wind damage such as fallen branches. Collision coverage alone does not.

A second test in a month

The storm arrives weeks after severe flooding in Cape Breton. Inverness, Victoria and Richmond counties declared local states of emergency in early September, and more than 200 millimetres of rain fell in Richmond County.

For brokers with clients in coastal Nova Scotia and in the communities flooded earlier this month, the priority is to confirm, before any claim is made, that clients understand which sources of water their policy covers. Brokers should also check that any sewer backup or overland flood endorsements are in place and carry adequate limits. Some clients may still have open claims from the September floods, which makes clear documentation of any new damage important to keep the two events separate.