Amid changing property values and worsening weather, here’s how to ensure clients are properly covered

As extreme weather becomes more frequent and severe across Canada, homeowners must take small yet preventive steps to protect their home before damage occurs.  

Claims history can influence how coverage is evaluated, so mitigating the risk of a policyholder making a claim due to extreme weather damage should be front of mind. 

“That said, there are situations where you can’t control what happens to your house, regardless of the preventive measures you put in place, and that’s exactly why having the right coverage matters,” says Steven Harris, licensed insurance broker and LowestRates.ca expert.  

To that point, Harris advises homeowners to maintain their properties to prevent losses, be strategic about when to file a claim, and seek guidance from their brokers early if they expect issues to arise.   

“If you’ve had a claim, it’s worth speaking directly with your broker about how it may affect future eligibility,” he says. “For homeowners who have made multiple claims and are finding it difficult to secure coverage, transparency is key. A broker who understands your situation and has access to a range of insurers, including those that handle higher-risk properties, can help you explore available options and find the best possible protection.” 

Harris says there are several key areas where homeowners should understand their insurance coverage so they can prevent potential gaps. 

The first area of understanding is water damage and flooding. 

Standard home insurance policies usually cover sudden and accidental water losses from things like burst internal pipes. But other water losses such as sewer backup, flooding and overland water are optional coverages that can also be purchased. 

“Preventive steps such as cleaning gutters, extending downspouts, ensuring the ground slopes away from the home, and installing a sump pump with a battery backup can all help reduce the risk of water entering the home or damaging the foundation and ultimately lower the chances of a costly claim,” says Harris. 

Next, homeowners should also understand their wildfire and smoke damage.  

Fire coverage is included in most home insurance policies, but coverage for additional damages, like smoke or ash infiltration, can vary. 

“Homeowners can reduce exposure by covering vents and openings with mesh, installing double-pane or tempered glass windows and doors, and using fire-resistant or non-combustible materials such as composite for decks and patios,” he advises. “Choosing Class A fire-rated roofing materials such as metal, clay, or concrete can also strengthen protection.” 

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Lastly, Harris urges policyholders to review their hail and wind damage coverage. 

Most policies cover wind and hail, but older roofs may be subject to depreciation or actual cash value settlements. Specifically, he notes for some markets, roofs over 15 years old are adjusted on an actual cash value basis, and any resulting damage may not be covered. 

But homeowners can reduce their risks by installing storm shutters, ensuring proper flashing and seals, and regularly inspecting and resealing roof penetrations such as vents, chimneys, and skylights with high-quality materials.  

“When choosing roofing materials, selecting the highest-rated class for impact resistance can help minimize both damage and repair costs,” he says.  

Alyssa DiSabatino

Alyssa Di Sabatino has been a reporter for Canadian Underwriter since 2021, covering industry trends, market developments, and emerging risks.