Basement water damage remains a top reason why customers submit home insurance claims, Allstate Insurance Company of Canada says.

According to a Léger poll of 1,000 Canadian homeowners conducted on behalf of Allstate Canada, 80% of Canadians have a basement and one in 10 have experienced basement flooding. And it’s not just a matter of frequency, the severity of flood claims has increased as well.

In part, post-COVID-related costs have increased the cost to repair a water-damaged basement by nearly 20% between 2019 and 2024, Allstate Canada agency manager Odel Laing tells Canadian Underwriter in an interview Thursday.

Basements have evolved from mere storage spaces to integral parts of many homes, now equipped with state-of-the-art entertainment systems, expensive gym equipment and valuable furniture. “However, these spaces remain highly susceptible to flooding, potentially leading to costly repairs,” Allstate Canada says in a Mar. 3 press release.

Allstate Canada’s survey revealed 61% of homeowners have a bathroom, sink or access to running water in their basement, and 55% use their basement to store a spare fridge or freezer. Forty percent have a bedroom, 30% have a home gym or workout area, 23% installed a home theatre system, 20% a home office, and 25% say their basement has a playroom for their children.

The Léger poll also found 41% of homeowners surveyed use their basements to store expensive sports gear such as skis and bikes. Nearly one in three (32%) store home entertainment equipment in their basement. And basements are commonly the site for priceless possessions such as photo albums (40%), family heirlooms (24%), and, among other things, important financial, legal or tax documents, computer equipment, and musical instruments.

Laing lists some strategies for homeowners to reduce their risk of basement water damage. The first step is for homeowners to contact their insurance professional to know what’s covered, especially since specific coverage in many areas across Canada is not mandatory.

The next step is to mount anything that can be lifted or elevated from the floor, such as TVs or cabinets where documents are stored, Laing says.

“A lot of individuals use cardboard boxes to store things as well,” he says. “Switch to plastic tubs or plastic storage containers. In the event there’s any flooding or inflow of water, at least whatever is within that container is protected as opposed to using a cardboard box.”

Laing notes some properties may be more susceptible to water damage. In that case, he recommends speaking to a professional landscaper to see if there’s anything that can be done to redirect water away from the home’s foundation.

Another strategy is to tap into technology, such as monitoring systems, to detect water leaks. “Homeowners can be notified if there is any leakage or water in the basement…and can take quick action…to fix it,” Laing says.

For people who have not yet renovated their basement, “ensure [flood prevention is] a critical part of the conversation when selecting a contractor or a professional,” Laing says. “[Have] discussions in terms of how to reduce the risk of flooding before that basement is finished or constructed…”

 

Feature image by iStock.com/Alex Potemkin