Sewer backup and overland flood claims in Canada: what to document

Water damage is a common reason for home insurance claims in Canada, and severe weather keeps adding to it. The Insurance Bureau of Canada (IBC) reported a record $8.5 billion in severe-weather insured losses in 2024, including $990 million for the July 2024 flash floods in the Toronto area, and more than $2.4 billion in 2025 (IBC and CatIQ estimates). When water enters a home, the first question is often not how much damage there is, but where the water came from.

Three kinds of water, three coverages

Where the water came from	How it is usually insured
Inside the home: burst pipe, appliance leak	Check your policy's water damage wording
Sewer or drain backup	Covered only if you bought optional sewer backup coverage
Overland water: rivers, heavy rain flowing in from outside	Optional overland flood coverage, widely available in Ontario per IBC, often with limits, possibly unavailable in a known flood plain or high-risk area

Look at your declarations page for endorsements such as sewer backup and overland water, and note their limits and deductibles. The answer to "where did the water come from?" matters, so record what you observed as precisely as you can. Your insurer and your policy decide coverage.

What to document

• The timeline: when the water started, where it entered, how high it rose, when it stopped.
• The source: floor drain, toilet, sump, window well, foundation, or a pipe; photograph it.
• The damage: every room before cleanup, water lines on walls, wet floors and furniture.
• Emergency measures: extraction, drying equipment, temporary repairs, with invoices and who paid.
• Damaged belongings: an inventory with quantity, description, age, today's replacement cost and status (replace, dry or clean, not affected).

IBC guidance is to report the damage to your insurer or insurance representative, assess and document the damage (photos help), and gather proofs of purchase, receipts and warranties.

Drying and mould

Start drying as soon as it is safe. U.S. EPA guidance advises drying water-damaged areas and items within 24 to 48 hours to help prevent mould. Keep moisture readings or drying logs that contractors give you, and record any mould with dates and photos.

If you cannot stay home

If insured damage keeps you out of your home, IBC suggests asking your insurer whether you have additional living expenses (ALE) coverage and for how long. Keep every receipt and note what you would have paid anyway.

Statutory conditions and proof of loss

Provincial statutory conditions require notice and a proof of loss. In British Columbia, Statutory Condition 6 requires written notice immediately and a proof of loss as soon as practicable, verified by statutory declaration, with a complete inventory; Condition 12 makes the loss payable within 60 days after the completed proof of loss is delivered to the insurer, unless the policy sets a shorter period (Insurance Act, s. 29). In Ontario, the statutory conditions in section 148 apply to contracts covering the fire peril; for water and sewer backup losses, check your policy's own claims conditions. Ask your insurer which form it uses.

Help and complaints

For disputes, start with your insurer's complaint process; the General Insurance OmbudService (GIO), including in Quebec if your insurer is a GIO member, reviews a case only after the insurer's final position letter. In Quebec, you can also ask that your complaint file be transferred to the AMF. In Ontario, FSRA has warned that public claims adjusting services require an adjuster licence; check any adjuster on your provincial regulator's registry.

Putting it together

The Canada Water, Flood and Sewer Backup Claim Kit turns these steps into ready-to-use files, with nothing pre-filled that should come from your records, your policy or your insurer:

• CA_Water_Sewer_Backup_User_Guide.docx: step-by-step user guide with key terms, rules that may apply, sources and a final checklist.
• CA_Water_Sewer_Backup_Contents_Inventory_TRACKER.xlsx: room-by-room contents inventory with RCV, depreciation and ACV calculated, summary by room and category.
• CA_Water_Sewer_Backup_Mitigation_Repair_Log_TRACKER.xlsx: log of water extraction, drying and temporary repairs, with invoices and who paid.
• CA_Water_Sewer_Backup_ALE_TRACKER.xlsx: additional living expenses tracker: receipts, extra cost, reimbursed, not yet reimbursed, monthly summary, mileage.
• CA_Water_Sewer_Backup_Claim_Diary_TRACKER.xlsx: claim diary: key dates with alerts, contact log, documents sent, payments received.
• CA_Water_Sewer_Backup_Claim_Letters_TEMPLATE.docx: editable letters to request documents, information or time, to send documents, and to confirm conversations in writing.

Record the timeline in the diary, log every drying invoice in the Mitigation and Repair Log, list damaged belongings and track ALE.

Quick checklist

• Claim reported to the insurer; date and method noted in the Diary.
• Complete copy of the policy and declarations page requested and received.
• Limits, deductibles and deadlines from the policy written in the Diary and Settings tabs.
• Adjuster's name and contact details recorded.
• Inventory completed room by room; every line has quantity, age and replacement cost.
• Proof noted for each line (photo, statement, receipt, order history).

General information, not legal or insurance advice. Your policy decides what is covered.