Why water woes go beyond severe storms

While 2025 provided a reprieve from heavy flooding and other natural catastrophes that drove insurance claims sky high in 2024, sometimes it’s the little things that spark home insurance claims. 

Water-related home insurance claims for 2025 spurred by external sources like overland flooding, sewer backup and heavy rain soared 94% compared to the previous year, says a new report from Allstate Canada.

Water originating outside the home chalked up 24% of all home insurance claims during 2025.

Also in the news: Industry M&A “knows no end.” What that means for smaller brokerages

Allstate commissioned Léger to survey 1,527 Canadians aged 18 and over, who spoke either French or English, from Jan. 15 to 18, 2026. That survey finds:

• More than half (53%) of all respondents have no plans to take actions that could protect their homes from flooding this spring.
• And even among those who say they’re worried about flooding, 34% still stay they plan to do nothing.
• Of the 47% who say they’ll take ‘at least one measure’ to deter flooding, 26% were most likely to say they’ll clean drains and eavestroughs – and will do the work themselves.
• In keeping with that earlier number, only 17% of respondents say they’ll hire professional help to do any preventative maintenance or repair work.

“What we’re seeing is that many Canadians recognize the risk, but we’re reminding them how important it is to take concrete steps to protect their homes. Small actions taken early can make a meaningful difference before the spring thaw,” says Allstate Canada agency manager George Ljubicic.

Gaps in clients’ insurance awareness levels also show up in the survey, with 25% of respondents saying they’re unsure whether their general home policies cover flood-related damage. The report points out water and sewer back-up coverage is frequently optional in many home policies, suggesting a need to review coverages with clients.

Prepare for spring

As temperatures warm, the insurer notes both renters and homeowners can take do a few things to dial back water damage and flooding risk, including:

Test sump pumps and clear any detritus from floor drains or window wells that might catch water. And, if a home’s sump pump doesn’t have a battery backup, consider upgrading the unit.

Review home, rental or condo policies so that they understand the types of water damage that fall within their coverage, and where gaps might exist.

Find ways to move water away from a home by clearing gutters and downspouts. Ideally, downspouts should extend from two to three metres from the foundation.