With the late winter thaw happening around the country, Aviva Canada Inc. noted recently that the frequency and severity of water damage claims is on the rise.
“2013 was our worst year for water damage in part due to flooding in Alberta and Toronto,” said Sharon Ludlow, president of Aviva Insurance Company of Canada, in a March 20 press release. “But it is important to note that water damage is steadily increasing in terms of the number and cost of claims, and that homeowners and tenants can take steps to protect themselves from loss.”
In 2014, water damage claims accounted for 44% of dollars paid out on all Aviva Canada property damage claims, compared with 39% in 2004. The average cost per residential water damage claim has increased significantly – going from $11,709 in 2004 to $16,070 in 2014, a 37% increase.
Aviva Canada paid out $180 million in water damage claims in 2014, a 189% increase versus 2004 and a 57% increase versus 2012, the press release noted.
“The reasons for the upward trend are rather simple,” Ludlow said. “The increasing investment Canadians are putting into their basements, combined with more frequent severe weather events and an aging sewer system that is unable to deal with large amounts of water within a short time period, results in a lot of homes experiencing damage.”