Understanding The Terminology

Water has qualities similar to fire in the sense that it makes a great servant but a difficult master, something everybody probably realizes after they spill a glass of water and see how fast and how far it can spread, plus how hard it is to sop up.

The giant tsunami that hit Japan in 2011 would be considered flooding by insurance definitions

Now, imagine that same glass of water magnified 1000 times or worse! Calgary certainly had it's experiences with that concept back in 2012, experiencing a devastating overflow of the Bow and Elbow Rivers.

Although we've mostly recovered from that catastophic damage there are still unresolved issues and repercussions of the devastation that affected so many people. One thing that was prevalent at the time was that there was never any insurance coverage in Canada for what was described as flooding, which leads me to the topic of this post.

The initial step is the need to clarify a few things regarding the terminology. In insurance lingo, the word 'flooding' has a distinct definition and is not to be confused with 'overland water escape', which is interpreted in a completely different matter. Both terms are commonly interchanged when people speak of such events but for the insurance industry, consider the following.

Flooding, by insurance definitions, refers specifically to salt water sources and coastal flooding as associated with tsunamis and tidal waves. Of course, this cannot exist in Alberta, since we're a land locked province.

Overland Water Escape however, is water that comes from a fresh water source and includes rivers, lakes, ponds and the accumulation of rain.

The Calgary disaster in 2012 would be called Overland Water Escape by insurance definitions

The other thing that fits into this category is Sewer Backup, which refers to the escape or backup of water or sewage from a sewer line into the home, including the malfunction of a sump pump or septic system.

Yuck....this is something we hope you never have to go through

Fortunately, there is Overland Water Escape Coverage now available for Alberta residents and something with which you should speak to your broker about if you have concerns about this occurring to your home.

Certainly, with global warming having an impact on our environment, the likelihood of another disaster seems to be more and more prevalent, so mitigating steps must be taken for prevention and homeowners and building owners should consider adding additional coverage on their insurance policies.