Wednesday’s storm dumped close to a month’s worth of rain on parts of the Toronto area in a day. Basements filled, cars were submerged, trees came down on roofs and power lines. Now comes the part nobody enjoys: the claim.
Here is what your policy probably does and does not cover, what the Insurance Bureau of Canada tells people to do, and the city programme that pays most of the cost of keeping water out next time.
Wind and hail: usually covered. Water: it depends what you bought
A standard home policy typically covers wind, hail, fire and lightning. Damage from overland flooding, sewer backup and earthquakes is optional — coverage you have to have added.
That distinction matters more than it sounds, because how the water got in decides which add-on applies. Water that came across the ground and in through a door or window is overland water. Water that came up through a floor drain or toilet is sewer backup. They are separate endorsements and you may have one, both or neither.
Cars work the same way. A comprehensive auto policy covers flood, hail and wind damage to a parked vehicle. A basic policy may not. If your car was struck by something while you were driving, that is collision coverage. Without the right coverage, towing and repairs come out of your pocket.
What to do now
The Insurance Bureau of Canada’s guidance for severe weather recovery is short:
- Safety first. If the building may be structurally compromised, do not go back in until you know it is safe.
- Document everything. Photograph and video the damage, write an inventory with descriptions and values, and pull together receipts and warranties.
- Photograph before you throw anything out. Wet or mould-damaged items should go, but photograph them for the claim first.
- Call early. Contact your broker or insurer and start the claim now. After a storm this size the queue builds fast.
- Ask about living expenses. Additional living expenses coverage reimburses hotel stays, restaurant meals and laundry while your home is uninhabitable, up to your policy limit.
IBC runs a consumer line at 1-844-227-5422. Once a claim is approved you can choose your own contractor, though insurers usually offer preferred vendors.
Whether to claim at all
Weigh the damage against your deductible, which may be $500, $1,000 or more. A flooded basement clears that bar easily. A chipped window may not.
There is a second cost. Many insurers give a claims-free discount to households that have not claimed in five years, and a claim can end it at renewal. Rates.ca puts the average Ontario home premium at $2,235 a year, up 6.2 per cent from last year.
None of that is a reason to absorb a serious loss. It is a reason to do the arithmetic on a small one.
The Toronto subsidy most homeowners have not claimed
Separate from insurance, the City of Toronto runs a Basement Flooding Protection Subsidy Program. Since May 1, 2026 it pays up to $6,650 per property for work done on or after November 12, 2025.
The city covers up to 80 per cent of the invoiced cost, capped by device:
- Backwater valve — up to $1,600 per device, two devices per property, alarms included.
- Sump pump — up to $2,250, one per property, including alarm and battery backup (an extra $300 maximum).
- Pipe severance and capping — up to $400.
- Home plumbing assessment — up to $500, once.
You must be the registered owner of a single-family, duplex, triplex or fourplex property in Toronto, your downspouts must be disconnected, your front-yard paving compliant, and you must have no outstanding debts to the city. Contractors need a valid City of Toronto business licence at the time of the work, and applications have to be in within two years of installation.
Details and the application are on the city’s website under Basement Flooding Protection Subsidy Program.
Why this keeps happening
Insured losses from extreme weather in Canada now average more than $3.7 billion a year, up from $1.4 billion the previous decade, according to the Insurance Bureau of Canada. 2024 was the costliest year on record at more than $9 billion — the year a July storm flooded basements and drowned cars across the GTA.
Premiums follow. Whether or not you were hit this week, the useful hour this weekend is the one spent reading your own policy, checking whether you have overland water and sewer backup coverage, clearing the gutters, and looking at the branches over your roof.
Sources: Insurance Bureau of Canada; City of Toronto Basement Flooding Protection Subsidy Program; Ratehub.ca and Rates.ca, as reported by The Canadian Press.
