Home insurance was created when fire was the leading cause of loss and before more expensive furnishings were used in homes. Personal property coverage has had to adapt to the new reality of increased water damage.
Telling the Weather Story, a report by the Insurance Bureau of Canada, explains the relationship between weather and insurance.
This report identifies water damage as the leading cause of personal property claims. Some of the reasons for this are;
- Increased precipitation
- Changing and less predictable weather
- Increased use of water operating devices such as dishwashers and hot tubs
- Aging municipal infrastructure which includes water and sewer pipelines
Condo residents are more likely to experience water damage. They are at risk for water penetration originating in their own suite or from suites located higher up in their building. Water travelling down from the source of penetration can result in more damage to more homes than what is likely to occur in a single unit dwelling.
Condo residents who do not maintain condo insurance may be financially responsible for damage occurring to their or other suites.