What is an uninsurable peril?

By: John Loeppky on October 2, 2025

Quick summary:

Uninsurable perils like floods, earthquakes, and vermin damage aren’t covered by standard home insurance due to their unpredictability or preventability.
Coverage depends on your policy type—comprehensive, basic, or broad—and optional add-ons like sewer backup or earthquake protection can help fill gaps.
If you're affected by an uninsurable event, provincial disaster relief programs may offer financial assistance when insurance doesn’t apply.

This article has been updated from a previous version.

While home insurance is designed to offer protection against many of life’s uncertainties, not every type of damage is covered. Some events fall into a category known as uninsurable perils—risks that insurance providers typically won’t cover due to their unpredictability, high cost, or preventability.

Across Canada, extreme weather events are becoming more frequent, more severe, and more expensive. From devastating wildfires to unexpected floods and record-breaking cold snaps, homeowners and renters are facing increased risks.

In this article, we’ll break down what uninsurable perils are, why they’re excluded from standard policies, and what you can do to protect yourself when the unexpected becomes reality.

What is an uninsurable peril?

An uninsurable peril is a risk that your insurance company refuses to cover by default. Some examples include:

Flooding damage
Landslides and earthquakes
Freezing damage from indoor plumbing
Damage from vermin like bugs and rodents
Pollution
Illegal activities or damage done in a house obtained illegally
Damage from war or terrorism

Coverage isn’t available for situations involving illegal acts. The same goes for damage from rodent infestations or frozen pipes — both of which are often preventable. But what about events that are completely out of your control?

For instance, some of these risks are massive. In 2023, Canada recorded $3.1 billion in insured catastrophic losses, primarily due to water-related damage, according to a report by Statistics Canada. These record-setting events impacted both insurers and consumers, driving up reinsurance costs and homeowners' insurance premiums.

Insurance isn’t always black and white. For example, an uninsurable event, like an earthquake, might not be covered in and of itself — but if that earthquake results in a housefire, fire damage is typically covered by standard home and tenant insurance policies.

But what happens if you do find yourself knee deep in water unexpectedly or suddenly sharing your home with a family of rodents?

Types of home insurance coverage

Whether you rent or own, it’s important to understand what kinds of risks your insurance can—and can’t—cover. That starts with knowing the three main types of home insurance: comprehensive, basic (or named perils), and broad coverage.

Comprehensive coverage is like an all-inclusive resort: most things are covered unless they’re specifically excluded. Think of it as full-service protection—though you’ll still need to pay extra for certain add-ons, like flood or sewer backup coverage.
Basic coverage, on the other hand, is à la carte. You’re only protected against the specific risks you name in your policy—what the insurance industry calls “named perils.”
Broad coverage is a hybrid of the two. It typically covers the structure of your home against most risks, unless they’re explicitly excluded. But when it comes to your belongings, only the perils you name are covered.

Where you live can also affect what you’re able to insure. For example, if your home is on a flood plain, you may not be eligible for overland flood insurance—or it might come at a higher cost.

Optional add-ons to consider

Even with a solid insurance policy, you may want to add extra protection through optional endorsements. These can include:

Sewer backup coverage
Glass breakage protection (can help reduce your deductible)
Earthquake damage coverage
Special belongings coverage (for high-value items like rare jewelry or art)
Identity theft protection

Even with comprehensive coverage, it’s important to understand your policy’s limits like how often your home must be checked for cold-related damage if left unoccupied.

The worst-case scenario

You’ve done everything right—read your policy, worked with a trusted broker, taken every precaution—and still, disaster strikes.

If you’re hit by an uninsured peril like a flood, it’s important to know that help may still be available. Several provinces offer government-backed disaster relief programs for situations where insurance doesn’t apply.

Alberta has the Disaster Recovery Program; Saskatchewan offers the Provincial Disaster Assistance Program; Nova Scotia runs the Disaster Financial Assistance Program. In Ontario, residents can apply for Disaster Recovery Assistance for Ontarians.

Each province and territory has its own eligibility rules, so it’s worth knowing your options just in case Mother Nature, or something equally unpredictable, comes knocking.