“With so many Canadians making a significant investment in their basements as more of a comfortable living space than a grungy storage room, a greater value in belongings in a high-risk area of the home has led to an increase in number of water damage claims.”
Data from Aviva Canada show that the average cost of its water damage claims rose 117% -- from $7,192 in 2002 to more than $15,500 in 2012.
Four regions showing the greatest increases in water damage claims costs included B.C. (154%), Ontario (136%), Alberta (109%) and Newfoundland and Labrador (107%). Last year’s spring thaw was “uneventful,’ said Aviva. Nonetheless, the insurer paid out more than $111 million in property water damage claims.
There is a great deal of discussion within the property and casualty industry about whether increased water claims are a by-product of climate change, or whether they are the result of human error – or both.
McBride said many water damage claims at his brokerage fall under the “human error” category, as opposed to being related to renovation. “Many of ours are just people forgetting to turn their water valves off during the winter, for example,” he said. “It could be a hose outside and they don’t drain the water.”
To help their clients avoid water damage, brokers are advising their clients to:
• Make sure roofs are in good condition.
• Unclog blocked gutters
• Clear out snow accumulation near foundations, doors and basement windows
• Unblock catch basins
• Move valuable basement items to high shelves or risers
• Seal exterior walls when finishing the basement.
• Install sump pumps and backwater valves.
McBride said advice to clients facing water-related damage may depend on the circumstances and severity of the damage. “We try to get them not to use insurance as much as possible, but if it makes economic sense for them to put a claim forward, then of course we suggest that,” he said.