Updated: April 2025  |  bremo.io financial guides

Canada Flood Insurance: 2025 Guide

Flooding is the most costly natural disaster in Canada, yet standard home insurance policies do not cover overland flooding. Billions of dollars in flood damage have occurred across Canada in recent years — from the 2013 Calgary floods to flooding in BC and Atlantic Canada — much of it uninsured. This guide explains how flood insurance works in Canada and how to get coverage.

What Standard Home Insurance Covers for Water

Standard home insurance policies typically cover "sudden and accidental" water damage, such as a burst pipe, appliance failure, or roof leak during a storm. What they typically exclude: overland flooding (water entering from outside), groundwater seepage, sewer backup (unless added as a rider), and damage from gradually deteriorating drainage.

What Is Overland Flood Insurance?

Overland flood insurance covers water that enters your home from ground level — from heavy rainfall, snowmelt, or rising water bodies. It's an endorsement (add-on) to a standard home policy, not a standalone product. Not all insurers offer it, and properties in high flood-risk areas may find it unavailable or very expensive.

Sewer Backup Coverage

Separate from overland flooding, sewer backup coverage (also called sewer and drain backup) covers water entering your home through floor drains, toilets, or other sanitary connections when the municipal system is overwhelmed. This is a common source of basement flooding during heavy rain and is typically available as a standalone rider for $30–$60/year.

Why Flood Insurance Is Hard to Get in Some Areas

In Canada, flood insurance availability is limited by risk. Properties in Federal designated floodways, 100-year floodplains near rivers, or areas with a history of repeat flooding may find no insurer willing to provide overland flood coverage. The federal government has been developing a national flood insurance program for high-risk properties that cannot access private market coverage.

Government Flood Programs

The National Flood Insurance Program (in development as of 2025) aims to provide affordable flood insurance to Canadians in high-risk areas. The Disaster Financial Assistance Arrangements (DFAA) provide some federal assistance after major disasters, but this is not a substitute for insurance and covers only a fraction of losses. Flood maps are available through Natural Resources Canada for assessing your property's flood risk.