Protect your home from water damage and save on insurance

Updated on May 19, 2026 by Aya Al-Hakim.

Written originally by Joel Kranc on March 11, 2021.

Spring brings warmer temperatures, longer days, and a higher risk of water damage in your home. Melting snow, heavy rainfall, and seasonal storms can overwhelm drainage systems and seep into basements, roofs, and foundations. 

Whether you’re a homeowner or renter, preventing water damage is essential. Not only can it save you from costly repairs, but it can also reduce your home insurance premiums. 

Why water damage prevention matters  

Water damage is one of the most frequent and financially significant risks facing Canadian homeowners. According to an April 2026 Government of Canada press release, flooding causes an average annual loss of over $2 billion. 

These losses are increasingly driven by water-related events such as heavy rainfall, snowmelt, and sewer backups, which continue to push insurance claims into the billions annually.  

At the household level, even minor issues can become expensive quickly. For example, a basement leak can cost $50 to $300+ per linear foot to repair, depending on severity, according to RCC Waterpoofing, a Toronto based company. Left untreated, these problems can escalate into major structural damage, mold remediation, and electrical hazards. 

Read more: 12% more Ontario homeowners add insurance coverage in 2025 as climate concerns shift: survey 

How to prevent water damage in your home 

The challenge for any homeowner or renter is that water is sneaky, it can come from almost anywhere. To protect against water damage across your home, consider the following: 

• Remove leaves and other debris from drains, eavestroughs, downspouts, and any other areas that collect water, for water to drain properly. 
• Extend downspouts at least two metres from your home’s foundation. 
• Test your sump pump and potentially install more than one to ensure excess water is drained properly. If possible, add a backup power source to the pump in case of power failure. 
• Install window wells and covers to keep as much water out of the basement and low-lying areas as possible. 
• If necessary, correct the grading and foundation of your home so that water has a chance to flow and/or drain away from the house. 
• Reseal your basement with a new or upgraded protective membrane. 
• Inspect your roof, and caulk and seal your windows. 

Those suggestions reflect things that can happen when water seeps in from the outside. Inside your home, however, you may need to be proactive against other issues, such as: 

• Know where the main water shut-off in your home is in case a pipe bursts. 
• Ensure appliance hoses and faucets are leak-free. A leak monitor and shut-off system can help prevent serious damage. 
• Install emergency pressure release valves in the plumbing system to protect against pressure caused by freezing pipes. 
• Inspect all showers and tubs that often hold a lot of water and might have small cracks or issues that can pose problems later. 
• Store valuables in watertight containers and keep boxes and furniture away from floor drains. 

Read next: Contents insurance 101: What it covers and why you need it 

Can waterproofing your home lower insurance costs? 

Taking steps to prevent water damage doesn’t just protect your home, it can also reduce what you pay for insurance. Many providers offer discounts or better rates to homeowners who actively lower their risk. 

Instead of being seen as a potential high-cost claim, a well-protected home signals preparedness and resilience. That can translate into real savings over time. 

You may qualify for insurance discounts if you’ve invested in features such as: 

• Sump pumps with backup power: Help prevent basement flooding during heavy rain or power outages 
• Water leak detection and automatic shut-off systems: Stop small leaks from turning into major claims 
• Backwater valves: Protect against sewer backups during storms 
• Upgraded roofing: Reduces the likelihood of leaks and weather-related damage 
• Storm-resistant windows and waterproofing systems: Add an extra layer of protection against extreme weather 

Ultimately, insurers price policies are based on risk. Homes equipped with these safeguards are less likely to experience major damage, which can lead to lower premiums or added discounts, depending on the provider. 

Learn more: What is a backwater valve and how does it work?

Choosing the right water damage insurance coverage 

Even the best prevention plan can’t eliminate risk entirely. That’s why it’s important to make sure your insurance coverage is aligned with today’s most common water threats. 

Many homeowners are surprised to learn that not all water-related damage is automatically included in a standard policy. In many cases, you’ll need to select additional coverage options. 

When reviewing your policy, pay close attention to whether you’re covered for: 

• Overland flooding: Covers water from heavy rainfall, overflowing rivers, or rapid snowmelt 
• Sewer backup protection: Covers damage when municipal systems are overwhelmed 
• Basement flooding coverage: Particularly important for homes with finished or furnished basements 

Because insurers differ in how they package and price these add-ons, it’s worth taking the time to: 

• Compare policies across multiple providers 
• Review coverage limits and exclusions carefully 
• Ask specifically about gaps related to water damage 

A slightly higher premium can often be worth it if it means avoiding tens of thousands of dollars in uncovered repairs. 

Learn more: 30% of Canadian homeowners unaware they must pay extra for flood and earthquake insurance