Does Home Insurance Cover Water Damage Restoration in Ontario?

Standard home insurance in Ontario covers water damage from sudden and accidental internal sources -- burst pipes, appliance malfunctions, and unexpected plumbing failures. Ontario insurers apply one standard: the event must be sudden, the cause must be accidental, and the water source must be internal. Basic water damage coverage is included in all standard Ontario homeowners insurance policies.

Tenant insurance and condo insurance follow the same sudden-and-accidental standard but carry different coverage limits. Water damage represented more than 40 percent of all home insurance claims between 2021 and 2025, according to 2026 data from Allstate Insurance Company of Canada. Basement flooding cleanup is one of the most common covered scenarios.

Does Home Insurance Cover Burst Pipes in Ontario?

Yes, home insurance covers burst pipe damage in Ontario when the pipe failure is sudden and not caused by neglect or lack of maintenance. A pipe that bursts without warning qualifies. A pipe that leaks gradually over weeks does not. Winter pipe freezing is covered when the homeowner maintained adequate heating.

Does Home Insurance Cover Appliance Water Damage?

Yes, accidental water damage from appliance malfunctions -- washing machines, dishwashers, and water heaters -- falls under standard home insurance coverage in Ontario. The appliance failure must be unexpected, not the result of poor maintenance or known defects.

Does Home Insurance Cover Roof Leaks in Ontario?

Yes, home insurance covers roof leak damage in Ontario only when a sudden covered peril causes the leak -- wind, hail, or falling debris qualifies, but gradual deterioration does not. Ice damming without add-on coverage and foundation seepage are both excluded under standard policies.

Ontario home insurance policies exclude 5 primary categories of water damage: gradual leaks, wear and tear, homeowner neglect, external flooding, and repeated water intrusion.

Gradual leaks -- slow drips behind walls or undetected foundation seepage -- represent the opposite of the sudden-and-accidental standard. Neglect applies when homeowners ignore visible water stains or fail to repair known issues. External flooding from storms, river overflow, or spring thaw requires add-on coverage.

Ontario homeowners need add-on water damage endorsements whenever the damage source is external, underground, or weather-related -- 3 categories that standard policies exclude by default. The 5 primary add-on endorsements are sewer backup, overland flood, extended water damage, above ground water, and ice damming and roof drain backup.

Add-on endorsements cost $50-$200 annually depending on insurer and risk zone. Toronto flood-prone areas like Scarborough and North York carry higher premiums. An estimated 94 percent of Canadians in high-risk flood areas remain unaware of their flood risk, according to the 2022 Public Safety Canada Task Force on Flood Insurance and Relocation.

Does Home Insurance Cover Sewer Backup in Ontario?

No, standard home insurance does not cover sewer backup damage -- Ontario homeowners need a separate sewer backup endorsement for this protection. Sewer backup coverage includes municipal sewer overflows, drain backups, and sump pump failures. Sewage backup cleanup costs are covered only with an active endorsement.

Does Home Insurance Cover Flooding in Ontario?

No, standard home insurance does not cover overland flood damage in Ontario -- homeowners require a dedicated overland flood endorsement to protect against external water from storms, snowmelt, or rising water tables. Overland flood endorsements became available in Ontario after 2015.

What Other Water Damage Add-Ons Are Available in Ontario?

Ontario insurers offer 3 additional water damage endorsements beyond sewer backup and overland flood coverage: extended water damage, above ground water, and ice damming and roof drain backup.

• Extended water damage coverage protects against sudden water escape from plumbing, heating, or air conditioning systems beyond basic limits
• Above ground water coverage covers water entering through windows, doors, or foundations from accumulated rainfall or snowmelt
• Ice damming and roof drain backup coverage covers interior damage from ice dams during Ontario's freeze-thaw cycles

Filing a water damage insurance claim in Ontario involves 6 sequential steps, and the process takes 2-6 weeks for straightforward claims.

Ontario homeowners have a duty to mitigate ongoing damage. Failing to stop the water source reduces the claim payout.

Filing a water damage claim is worth it only when the estimated restoration cost exceeds the deductible by a significant margin -- minor damage under $2,000-$3,000 costs less than the premium increase a claim triggers over the next 5-7 years. Filed claims remain on record for 5-7 years and affect future premiums.

Pay out of pocket when the damage estimate is less than 2 times the deductible. A water damage restoration cost guide helps compare repair costs against the deductible.

A denied water damage insurance claim leaves Ontario homeowners responsible for the full restoration cost out of pocket, which ranges from $3,000-$15,000 for moderate basement flooding and exceeds $25,000 for severe structural damage. The 3 most common denial reasons are gradual damage classification, lack of add-on coverage, and failure to maintain the property.

Ontario homeowners who receive a denial can request the written denial letter, review the policy language, and file a complaint with the Ontario Financial Services Regulatory Authority (FSRA). Insured losses from severe weather reached $8.5 billion in 2024 -- the highest ever in Canada -- with Toronto and southern Ontario flash floods alone causing over $940 million in insured damage, according to the Insurance Bureau of Canada.

Spring thaw in March-April and summer storms in June-August are peak denial periods because homeowners assume standard coverage applies. A water damage restoration cost breakdown helps estimate out-of-pocket expenses when a claim is denied.

Home insurance covers water damage restoration in Ontario only when the damage is sudden, accidental, and originates from an internal source. Standard policies cover burst pipes, appliance failures, and sudden roof damage from covered perils. Add-on endorsements cover sewer backup, overland flooding, extended water damage, above ground water, and ice damming.

Exclusions apply to gradual damage, neglect, and uninsured external water sources. Review home insurance policy details and add water damage endorsements before damage occurs in Ontario -- not after a claim is denied.