Compensation - Water damage - Claiming - Business - Business |


Water damage

Your insurance protects you against water damage, but not in all cases. It all depends on the coverage you chose when you purchased your policy (endorsements added) and the cause of the disaster:

However, for the damages covered, your insurer will compensate you according to the coverage chosen under your policy. He will also take into account the maximum amount (limit) for the reimbursement of certain categories of items.

Examples of coverage for damages caused by sanitary installations:

  • The hose on your dishwasher broke, while it was running.
  • Your sink overflowed.

Example of coverage for a water main break:

  • The old city water main which supplies your company breaks and the water floods your basement, which you’ve just renovated.

Examples of coverage for a water seepage:

  • A violent thunderstorm hits and water leaks through your roof.
    Covered, if you added the endorsement Water Damage – Above Ground Water Coverage to your home insurance policy.
  • With spring and the melting snow, water seeped through your foundation walls.
    Covered, if you added the endorsement Water Damage – Ground Water and Sewers Coverage to your insurance policy.

Example of coverage for sewer back-up:

  • Heavy rains fall on your neighbourhood and the sewers can’t handle the large quantity of water that hits the ground, with the result that the sewers back up into your business.
    Covered, if you added the endorsement Water Damage – Ground Water and Sewers Coverage to your insurance policy. .

Flooding caused by an overflowing body of water (spring flooding, for example): :

  • An ice jam raises the level of the river which your business overlooks. The water rises on to your land and floods your basement.
    Not Covered. There is no coverage for flooding caused by an overflowing body of water.

Property for which coverage is limited under most insurance policies, regardless of the type of loss covered.

Animals $1,000 to $2,000
Boats $1,000 to $2,000
Gold or silver bars, bank notes and cash $200
Software $1,000 to $2,000
Lawn tractors, equipment trailers $5,000
Securities $1,000 to $2,000
Personal property used for professional activities $2,000

Replacing destroyed or damaged items

First, your insurer will have items cleaned if they can be cleaned and repair damaged items that can be repaired.

If items must be replaced, your insurer will replace them with new items of the same type and quality if you chose this settlement option when you purchased your policy. If not, your insurer will indemnify you based on their actual cash value.

Your insurer’s obligation

Your insurer is required to return your belongings to the state they were in prior to the loss. An item will be repaired or cleaned if it can be. Were your clothes soaking wet? Your insurer will have them cleaned. Does your floating floor need to be replaced? Your insurer will have it reinstalled using the same material.

Your insurer also has to pay you for the damage within 60 days of receiving your claim or any information or supporting documents it may request.

Repairing your building

And if your building is damaged, a plan will have to be drawn up to evaluate the cost of rebuilding the damaged premises. Your insurer will have the damaged or destroyed portions repaired or rebuilt. If you opt not to have your business repaired or rebuilt, your insurer will reimburse you an amount of money based on its actual cash value.

Choosing a supplier or contractor

You can use a supplier or contractor of your choice to repair or replace an item or to rebuild the damaged portions. However, discuss it first with your insurer so that you can agree on the amounts paid.


And remember: you’ll have to deduct the amount of your policy deductible from the indemnity amount you receive from your insurer for each claim you make.