The average homeowner’s insurance policy does not cover damage due to rising water as occurred during Monday’s floods, said a Cobourg insurance group president.

Sudden, accidental water damage as a result of escaping water, from a burst pipe, an overflowing toilet or failed sump pump, as examples, will be picked up under most homeowners insurance policies, said Bryce Allen, president of the Allen Insurance Group. Although some insurers may offer separate flood insurance, flooding due to rising water is normally not an insured peril under most policies, he said.

Homeowners insurance was originally designed as fire insurance, to cover damage resulting from lightning, fire and wind, he said. Factors that figured into the cost of the policy included distance of the home from the fire hydrant and the fire hall. However, in recent years, water damage has taken over as a major expense in homeowners insurance, he explained.

By Jeanne Beneteau

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