Insurance can be complex for southern Ontario residents dealing with the aftermath of a recent storm. Matt Hands, the vice president of insurance at Ratehub.ca, advises reviewing your insurance policy to determine coverage for storm-related damages to your home or vehicle. While most standard home insurance policies cover wind and hail damages, they may not include flood coverage. Homeowners should check for overland water coverage and sewer backup coverage for flood-related damages.
Auto insurance policies vary in coverage. A comprehensive policy typically covers flood, hail, or wind damage, whereas basic policies may not. Hands suggests having comprehensive coverage for vehicle damage due to weather events. Without appropriate coverage, owners may need to cover towing and repair costs out of pocket.
After the storm, images showed flooded vehicles, fallen trees, and damaged properties. The Insurance Bureau of Canada recommends documenting damage, contacting your insurance agent, and providing proof of purchase when filing a claim. It is essential to act promptly as delays may occur due to the high volume of claims.
Hands emphasizes the importance of reviewing insurance coverage regularly and maintaining property to prevent damage. Insured losses from extreme weather events have been increasing, with costs averaging over $3.7 billion annually. Severe weather events contribute to rising insurance premiums due to the increased number of claims. In 2024, Canada experienced its costliest year on record, with insured losses exceeding $9 billion.
Severe weather events impact insurance costs, prompting insurers to increase premiums. Hands advises staying informed about insurance coverage and taking preventive measures to mitigate risks.