Devastating floods that swept through Montreal and Edmonton this past weekend are forcing Canadian homeowners to confront an uncomfortable truth: their insurance policies may not cover the damage.
Heavy rainfall dumped as much as 150 millimetres on Montreal in just hours, submerging vehicles, damaging homes, and leaving thousands without power. Meanwhile, Edmonton's storm drain infrastructure buckled under the weight of torrential rain, prompting a provincial state of emergency declaration in both cities.
But here's the problem that caught many residents off guard: most standard Canadian home insurance policies do not automatically cover overland flooding or sewer backup damage. These protections are optional add-ons that come with an extra cost.
The Coverage Gap Nobody Wants to Talk About
"Standard home insurance does not automatically include overland flood or sewer backup coverage. These coverages are optional and have to be added on at an additional cost to your standard home insurance," explains Rob de Pruis, national director of consumer and industry relations for the Insurance Bureau of Canada.
De Pruis urges Canadians to contact their insurance providers immediately to verify coverage. "That can literally help and save you thousands of dollars in the future if you do experience that damage," he says.
The timing couldn't be worse. Extreme weather events across Canada have already triggered a dramatic spike in insurance premiums, with rates climbing as much as 45 per cent over the past six years.
A Structural Crisis Unfolding Across the Country
Insurance companies are facing historic pressure. Statistics Canada reports that 2024 alone generated $8.6 billion in catastrophic event insurance claims—the highest on record. Flooding in Quebec and Ontario accounted for roughly $3.7 billion of that total.
"We are seeing premiums rise due to extreme weather, and it really is a coast to coast issue. Significant events have hit pretty much every province across Canada," says David Mayer, director of insurance and underwriting at rates.ca.
"It's becoming a structural issue, which even these premium increases are not fully keeping up with, depending on the coverage that homeowners have in their policies."
Why Are Flood Protections Missing?
The answer lies in how insurance products were designed decades ago. Mayer explains that when home insurance became mainstream in Canada, fire—not water—was the primary threat insurers worried about.
"Water damage was not as pervasive a threat," Mayer notes. "These products were constructed many decades ago when flooding simply wasn't on anyone's radar the way it is now."
Now, with extreme weather becoming routine rather than exceptional, that outdated thinking is costing Canadians dearly.
What You Should Do Right Now
Insurance experts strongly recommend homeowners contact their providers without delay to review their policies. Ask specifically about overland flood coverage and sewer backup protection. While these add-ons come at extra cost, they could prove invaluable when—not if—the next major weather event strikes your community.
This article is based on reporting from Global News.