Flooded Again? Why Your Insurance Denial Might Be A Clue To A Deeper Problem

The news that a Toronto shelter was facing $250,000 in damages after heavy rain—and that their insurance provider would likely not cover the cost—is a nightmare scenario for any property owner. According to the recent CTV article, the denial appears to hinge on the fact that the water "came from an outside source."

This is a story I see often in my practice. A property owner suffers a devastating flood. They make the panicked call to their insurance company, only to be told that their policy doesn't cover "overland flooding." Or, they have a "sewer backup" endorsement, but the $25,000 limit doesn't cover the cost of the remediation.

For many, this is the end of the road. They absorb the financial loss, pay for a patch-up job, and pray it doesn't happen again.