Who Pays For Basement Flooding?

It will likely be increasingly difficult for home and business owners to find anyone willing to pay for basement flooding. According to the insurers' Institute for Catastrophic Loss Reduction, "basement flooding is one of the biggest challenges facing homeowners, municipal governments and personal property insurers across the country." Municipalities across Canada have substantial protection against civil suits for sewer backups, due to statutory immunities created by each province. At the time these laws were passed, governments explained that private property owners should protect themselves by purchasing insurance against basement flooding. However, property insurers are in business to make a profit, and can logically refuse to provide flood insurance for the properties that need it most.