Property owners are not required to purchase overland water coverage — though landlords are free to require their tenants to carry overland coverage as a condition of renting. However, property owners in higher–risk areas may choose to add optional overland coverage to their home insurance as a way to protect themselves from the potential of another historic flash flood disaster. Were a flood on the level of the 2013 Alberta or Toronto incidents to occur again, overland water insurance would give property owners more comprehensive protection for flood damage.
The creation and popularization of overland insurance policies is not the first time that Canadian property owners have had access to flood coverage. On the contrary, basic flood coverage is part of most home insurance policies. What many people did not realize before 2013, though, was that the flooding coverage on their homeowner’s policy mostly involved damage caused by in-home water sources.
For instance, if a pipe were to burst, if a bathtub were to overflow, or if a hot water tank were to burst, any damage caused by those events would be covered. Water damage linked to leaking roofs or swimming pools would also be part of a basic homeowner’s policy.
Overland water coverage is different. It refers to freshwater floods, including those caused by heavy rain and overflowing rivers, lakes, or streams. In the past, if this water were to breach your home’s ground-level windows, doors, garage doors, etc. your home insurance policy would not cover any of the resulting damage.
This type of overland water damage can occur due to heavy rain (as in the 2013 Alberta and Toronto natural disasters) but can also be due to factors such as spring run-off from melting snow and ice, failed dam systems and more. An overland water policy includes coverage for all these types of damage.