Extreme Weather: Does home insurance have you covered?

Extreme weather is on the rise across Canada. Don’t be caught unprepared. 

According to the Insurance Bureau of Canada, 2024 was the worst on record for insured damage. In less than a month last year, four extreme weather events caused almost 8 billion dollars in damage. Now, more than ever, it’s important to make sure you have the right home insurance coverage for extreme weather damage.

Keep reading to learn more about:

• what standard home insurance policies usually cover,
• how to protect against damage from extreme weather with add-on home insurance coverages 
• how to figure out what kind of home insurance coverage you need
• the benefits of working with an insurance broker

It’s impossible to avoid the sudden and significant damage that storms can cause. That’s why it’s important to have the right insurance for extreme weather. 

Home insurance usually covers

Most comprehensive home insurance policies will cover a variety of weather-related events and other unexpected risks.

Fire, including wildfires:

Whether caused by natural events or accidents, fire damage is one of the most common types of insurance claim.

Wind-related weather:

Including storms, tornadoes, and hurricanes, most home insurance policies will cover damage that may happen to your roof, siding, or windows.

Ice and hail:

Ice and hail can cause damage to your home. Whether from hailstorms or ice buildup, this damage is usually covered by home insurance.

Theft and vandalism:

While not caused by nature, most home insurance policies include protection if your home is broken into or intentionally damaged.

Water damage from inside your home:

Unlike storms, most home insurance policies will cover water damage if the source is inside your home. For example, if a pipe bursts or your washing machine overflows.

Living expenses if you’re displaced:

If you need to temporarily leave your home after an event that’s covered by your home insurance, your policy may help pay for accommodation, meals, and other necessities.

Basic home insurance coverage offers protection against a range of risks. It doesn’t always insure your home for extreme weather damage.

Extra insurance for extreme weather damage

Not every weather-related disaster is covered in a standard home insurance policy. For more protection against extreme weather, consider extra coverage. 

Optional insurance coverages are also called: 

• policy add-ons, 
• endorsements, 
• or riders.

Depending on where you live, these home insurance add-ons could help improve your coverage.

Overland water/flood insurance

Most basic home insurance policies do not cover damage from water that comes into your home from outside, like heavy rainfall or flooding.

Overland water insurance covers flooding caused by rain, melting snow, or bodies of water overflowing. If you live near a river, lake, or in a low-lying area, consider this home insurance add-on.

Sewer backup coverage

A blocked or overwhelmed sewer system can cause contaminated water to come into your home. Often entering through the basement or bottom floor, this type of damage is expensive to fix and hazardous to your health. Not covered by standard home insurance, sewer backup coverage is a budget-friendly add-on to a policy.

Earthquake insurance

Earthquake damage isn't usually included in home insurance policies in Canada, but you can add it. If you live in an area like British Columbia or parts of Ontario and Quebec, you may want to consider earthquake insurance.

Deductibles for earthquake coverage are usually higher than other types of claims, often between 5% to 20% of your coverage limit.

Service line coverage

Storms can damage the utility lines that bring water, power, or gas to your home. If those lines are on your property, you may be responsible for their repair. Service line coverage helps cover the cost to repair or replace damaged underground lines.

Understand your home insurance needs

Where you live is more than just your most valuable asset, it’s your home. Make sure it's properly protected from extreme weather damage.

To get the best home insurance for damage from extreme weather, you’ll need to figure out your risk level and coverage needs.

Assess your risk

Start by evaluating the risks specific to your location and home.

Do you live in an area that often gets:

• wildfires, 
• flooding, 
• earthquakes, 
• or landslides?

Do you live in an older home? Older homes were built to different standards than they are now. Depending on when your home was built, it may be more easily damaged by extreme weather.

Have you made upgrades to help keep your home safe from extreme weather events? There are things that you can do to make your home more resistant to damage from wildfires and storms. If you live in an area where there’s risk of wildfires, have a look at our Preparing for a Wildfire article. 

An experienced insurance broker can help you assess what risks to plan for. Once you know your risks, your insurance broker will be able to recommend the best coverage to protect your home from extreme weather events.

Know the cost to rebuild

Make sure you understand what it would cost to rebuild your home — not just its market value. 

Ask how your insurance company calculates what they will pay out. Is it based on actual cash value or is it based on the replacement value (which covers the cost to rebuild new).

Actual cash value: your insurance company will factor depreciation in the value of your home when they review a claim

Replacement value: your insurance company will cover the cost of rebuilding your home when they pay a claim

An insurance broker can be a big help when you’re choosing your coverage. They work for you, not the insurance company. That’s how they’re able to find you the protection you need at the best possible price. Don’t have an insurance broker? Contact an Orbit expert.

Plan for extra costs

After a disaster, costs can add-up quickly. We often forget about things like:

Temporary living expenses: Your policy may cover shelter, food, and clothing if you're forced to evacuate (especially with earthquake or flood coverage).

Ongoing financial obligations: Most home insurance policies won’t cover ongoing costs like mortgage payments. Speak with your lender to understand your options after a disaster. 

Understand your home’s unique risks. Learn about your home insurance options and add-ons.  and options when it comes to home insurance. Plan for extreme weather events before they happen – make sure you have the coverage you need.

Work with an insurance broker 

There’s a big difference between working with an insurance broker and buying insurance directly. At Orbit, we work to understand the protection your home needs. We’ll make sure that you know about home insurance add-ons that help protect against damage from extreme weather. 

Let us help you weather the unexpected. Contact an Orbit insurance broker today for a free home insurance quote tailored to your home, risk level, and budget.

No time to talk? Complete our simple online form to request a quote.

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