Benefits of Overland Flood Insurance

Updated:
October 31, 2019

Floods are the second most common natural disaster in Canada, occurring five times as often as wildfires. Just a few centimetres of water from flooding can cause costly, irreversible damage to your home.

When it comes to protecting homes from floods, most property owners assume their home insurance policies will provide adequate coverage. This is often not the case, making dedicated protection in the form of overland flood insurance a must.

Specifically, overland flood insurance provides homeowners with the following benefits:

  • Comprehensive coverage for overland floods. Overland flood insurance is one of the only ways to protect against damage related to melting snow, excess rain, and overflowing riverbeds. Working hand-in-hand with homeowners and sewer backup insurance, overland flood endorsements can round out your risk management practices, providing comprehensive water damage protection.
  • Coverage beyond your homeowners policy. While home insurance policies may offer coverage for water damage from sewer backups or pipe bursts, they commonly exclude basic losses caused by overland floods. Overland flood endorsements provide a level of flood insurance that was previously unavailable, protecting your property from sudden losses related to run-off of surface waters and similar freshwater sources.
  • Protection for a variety of properties. Overland flood insurance is not limited to specific types of property. In general, coverage is available for owners or tenants of houses, condos, rental properties, season properties, or secondary properties. This makes overland flood insurance incredibly flexible, helping individuals secure the right policy.
  • Financial protection to supplement or replace disaster assistance funding. While government disaster assistance funding is available to some following massive flooding, it's not guaranteed. Disaster assistance is typically only available through the Disaster Financial Assistance Arrangements program when a disaster is officially declared by the government. As such, those without the appropriate policies may have to pay thousands of dollars of their own money to recover from flood damage.

Want to learn more about Overland Flood Insurance?

Floods can occur without warning, making overland flood insurance all the more important. To learn more about this type of coverage and assess your potential risks, contact a qualified insurance broker directly.

Download our free Flood Protection Guide for your home

FAQs

What is financial advising?

Financial advising involves providing guidance and advice to individuals, families, or businesses to help them make informed decisions about their financial matters. This can include various aspects such as investment planning, retirement planning, tax planning, estate planning, and more. Financial advisors analyze their clients' financial situations, goals, and risk tolerance to create customized strategies that align with their objectives.

Why is financial planning important?

Financial planning is crucial for several reasons:

Goal Achievement: It helps individuals set and achieve financial goals, whether they are short-term, such as buying a home, or long-term, like funding a comfortable retirement.

Risk Management: Financial planning addresses risks by considering insurance, emergency funds, and other protective measures.

Budgeting and Saving: It promotes responsible money management through budgeting and saving, fostering financial stability.

Wealth Building: Effective financial planning can lead to wealth accumulation and the creation of a secure financial future.

Can financial advisors help with debt?

Yes, financial advisors can help with debt management. They can assess your overall financial situation, create a budget, and develop strategies to pay down debt efficiently. They may also negotiate with creditors on your behalf, provide debt consolidation recommendations, and offer guidance on prioritizing and managing debt repayment.

What exactly does a financial advisor do?

The specific responsibilities of a financial advisor can vary, but generally, they:

  1. Conduct a thorough analysis of a client's financial situation, including income, expenses, assets, and liabilities.
  2. Develop personalized financial plans based on the client's goals, risk tolerance, and time horizon.
  3. Provide investment advice and portfolio management services.
  4. Offer guidance on retirement planning, estate planning, tax planning, and insurance.
  5. Monitor and adjust financial plans as needed based on changes in the client's life or market conditions.
  6. Educate clients on financial matters and empower them to make informed decisions.
What is the average fee for a financial advisor?

The fees charged by financial advisors can vary widely based on factors such as the advisor's experience, the services provided, and the region.

Common fee structures include:

Hourly Fees: Advisors charge an hourly rate for their services.
Flat or Fixed Fees: A set fee is charged for specific services or a comprehensive financial plan.
Asset-based Fees: Fees are a percentage of the assets under management (AUM).
Commission-based Fees: Advisors earn commissions on financial products they sell.
Combination of Fees: Advisors may use a combination of the above fee structures.

It's important to discuss and clarify fee arrangements with a potential financial advisor before engaging in their services.