Water damage is one of the most common reasons for home insurance claims in Canada, with basement flooding becoming an increasing concern.
Data from the Insurance Bureau of Canada showed that 2024 was the most expensive year for severe weather-related losses in the country’s history, with flooding contributing to over $1 billion in damages.
According to Allstate Insurance Company of Canada, the cost to repair a water-damaged basement rose by nearly 20% between 2019 and 2024.
In fact, in 2019, the Intact Centre on Climate Adaptation at the University of Waterloo released a report saying that basement flooding was the biggest climate change-related cost in Canada -and because insurers do not fully cover damage caused by flooding, some areas that are flood-prone had taken drastic measures, including banning basements to mitigate risks.
A Leger poll conducted for Allstate Canada found that 80% of surveyed Canadians have a basement, and one in 10 have experienced basement flooding. The poll also found that 61% of respondents have running water in their basement, while 55% use the space for an extra fridge or freezer.
Additionally, 47% have a bedroom, 30% a home gym, 25% a children’s playroom, 23% a home theatre system and 20% a home office, according to the report.
Basements are also used for storage, often holding valuable or irreplaceable items. Forty-one per cent (41%) of the respondents said they store sports equipment, such as skis and bikes, in their basements, while 32% keep home entertainment systems.
Flooding is more common during warmer months and homeowners may consider several measures to reduce risk, according to Odel Laing, agency manager at Allstate Canada.
Reviewing one’s home insurance coverage for water damage ensures homeowners understand their policy limits and can request for added coverage if necessary. Consulting professionals about landscaping to direct water away from the foundations of the basement may also help reduce the risk of flooding.
Having a water or leak detector connected to a home security system can also act as an early alert system. Other efforts to prevent damage on home properties may include elevating entertainment systems on stands or mounting them on walls, storing items in plastic bins instead of cardboard boxes and using waterproof cabinetry and shelving, can help minimize damage.
