Flood insurance is not a standard part of a homeowner’s insurance policy. A standard policy does provide you with protection against some disasters, such as fire and hurricanes, damage from lightning, wind and ice and for flooding that occurs within the Toronto home as a result of broken water pipes. Flood damage that results from conditions that originate outside the home, however, are not included in a standard policy.
The reason that insurance providers do not have flood insurance as part of a standard homeowner’s policy is that the majority of Toronto home owners do not live in areas that are prone to flooding and therefore do not pose a high risk to the provider. Such a high level of risk means an increase in the cost of premiums and since most people do not need this extra coverage, they should not have to pay the higher prices. Flood insurance for those that do live in flood prone areas is an extra insurance that incurs and extra cost.
Even for those who do not live in Toronto Homes near a body of water, it is good advice to consider taking out flood insurance protection for your home. Flooding can occur when heavy rains occur and water pours into your basement or when storm sewers are unable to meet the strain of carrying away the excess water.
Flooding can cause an extreme amount of damage to your home and its contents, not only through the damage caused by the water itself but the mold that results when the water is cleaned up. With such insurance in place, you have the protection you need for the replacement value of your home and the contents.
There is a 30-day waiting period involved in obtaining flood insurance on your home. This prohibits those living in flood prone area from purchasing this type of insurance when a flood warning has been issued. During this waiting period, any damages you do sustain as a result of flooding will not be covered under the policy. It is important to take out flood insurance on your Toronto home if there is a possibility of flooding in your area for your own protection.
Lenders in Toronto do not require you to have flood insurance, even though they do require you to have a standard home insurance policy in place. However, if you take out a federally backed mortgage, the government does require that you have such insurance on your home. Even if you are not required to have it, such a policy will give you peace of mind in knowing that if a disaster occurs you will not be left with a substantial loss, since homes in Toronto are quite expensive.