Water Coverage 101

Water Coverage 101

If you haven’t reviewed your home insurance policy in the last year or two, it’s possible you don’t have both SBU and Overland Water coverage.

What is SBU? Sewer systems are typically gravity-based and flow through to a wastewater treatment plant. When a sudden heavy rainstorm flushes debris into mainline storm sewers and sanitary sewers, sewers can back up into homes and businesses.
What is Overland Water? Water damage caused above the ground such as; the overflow of a lake or river, heavy rain, or rapid snow melt that enters your home from a point at or above ground level.

Canada’s costliest natural disaster ever was the June 2013 torrential rainfall that flooded towns in southern Alberta. Insured damage alone was more than $1.72 billion. Since then, insurers have introduced both Sewer Back-Up and Overland Water as separate coverages on home insurance policies, with each company offering a different rate and limit for these perils.

Many insurance companies will exclude a claim involving both Sewer Back-Up and Overland Water unless both coverages have been purchased. As your insurance broker, we do a comprehensive review of your policy and find the insurance best suited for your water coverage needs in your specific area.

Handy Tip:
Prevent sewer overflow in your basement by installing a backwater valve & sump pump; Many companies will offer a discount on your home insurance policy for having a backwater valve, or sump pump installed. Also, If you also have an alarm system installed, you may be able to add water monitoring to save premium dollars.