Insurance Bureau of Canada (IBC) is urging residents in parts of Ontario to prepare for severe spring flooding as rivers and urban drainage systems come under strain and several communities reporting rising water levels.
The industry body also reminded affected homeowners, drivers and business owners how their insurance may respond if floodwaters damage property.
“We’re already seeing significant flooding in a number of communities, with many more facing elevated risk,” said Amanda Dean, vice president, Ontario and Atlantic, at IBC. “For residents impacted by flooding, IBC’s Consumer Information Centre has activated its Virtual Community Assistance Mobile Pavilion (V‑CAMP) program to support home, car and business owners across the region. For those currently under threat, now is the time to take necessary precautions to help protect their properties and reduce potential damage.”
IBC described insurers as “second responders” in the recovery period after a catastrophe, providing the financial support that helps households and businesses rebuild.
The bureau also encouraged residents under threat to take basic mitigation steps where it is safe to do so, such as clearing floor drains and storm sewer grates, checking downspouts and sump pumps, moving valuables out of basements and deploying barriers or sandbags if flooding is imminent. Provincial guidance similarly stressed keeping drains clear, directing water away from foundations and using flood‑resistant materials in at‑risk areas.
Recent claims experience underlined why those measures matter. One major carrier reported a double‑digit surge in water claims from external sources in 2025, warning that many households remain under‑prepared for escalating water risk even as severe weather losses climb.
According to IBC, basement water damage caused by sewer backup is only covered where the policyholder has purchased optional sewer backup coverage. Overland flood damage from rivers and surface water is likewise an add‑on in most Canadian home policies and may be limited or unavailable for properties in high‑risk flood plains
By contrast, interior damage caused by water entering through a sudden roof leak is typically covered under a standard homeowners policy, although repairing an old or poorly maintained roof usually is not. Wind damage to homes is generally insured, IBC said. Home and business policies, however, usually exclude damage from coastal flooding and storm surge, which is less of an issue for inland Ontario communities but relevant in other regions.
Homeowners forced out of their properties by insured damage may be entitled to additional living expenses for temporary accommodation and related costs. On the auto side, damage to vehicles from flood or wind is typically covered where the owner has purchased comprehensive or all‑perils coverage; these options are not mandatory, and IBC is advising drivers to review their policies.
Coverage terms can differ by insurer and contract, and IBC is encouraging policyholders to review their wording and speak with their broker or agent to confirm what is and is not covered before a loss occurs.
For those already affected by flooding, IBC advised policyholders to document damage as soon as it is safe to do so, including taking photos and video of affected areas and contents. Policyholders should contact their insurer’s claims department or their insurance representative promptly, assemble proofs of purchase, receipts and warranties where possible, and keep damaged items unless they pose a health hazard.
Households should retain all receipts related to cleanup and, if they have been displaced, receipts for additional living expenses. IBC recommended asking the insurer whether additional living expenses coverage applies and for how long.
Commercial policyholders are being reminded that business interruption coverage is usually triggered by direct physical damage to the insured premises or, in some cases, to a neighboring property that forces a shutdown, depending on the wording. Business owners are being urged to consult their insurance representative to determine whether their business interruption coverage is likely to respond.
IBC is also encouraging owners of seasonal and secondary residences, such as cottages, to check those properties when it is safe to do so and to notify their insurer quickly if there is damage. Policies on seasonal homes often carry different limits and coverage options than primary residences, especially for water and flood risks.
IBC’s latest warning comes against the backdrop of a structural shift in Canadian water risk. Recent years have seen multiple “once‑in‑a‑lifetime” events hit the same regions, and 2024 set a new record for insured catastrophe losses nationally, driven largely by floods, wildfires and severe storms. A year later, overall losses eased but remained well above historical averages, underscoring the volatility that flood and other secondary perils are bringing to P&C balance sheets.
Meanwhile, the combination of more frequent flooding and rising claim severity is reinforcing the need for tighter underwriting and more granular flood mapping, while still maintaining a viable proposition for consumers already facing higher living costs.
IBC's messaging reflects into the broader policy debate around a national flood insurance program for high-risk households and increased investment in adaptation and infrastructure. The bureau has consistently argued that private insurance alone cannot solve the affordability and availability challenge without parallel action from governments and property owners on risk reduction.
In the near term, though, the focus for insurance professionals in Ontario will be operational: preparing for another round of water‑related claims, making sure policyholders know how to access assistance and helping communities recover as quickly as possible once the waters recede.
