Do Insurance Companies Cover Flood Damage?

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Car owners, for the most part, want to be sure that their car has Insurance to protect it. For the most part, they will buy as much insurance as they can afford. In some cases, car owners don’t entirely understand vehicle insurance. They either don’t buy enough, or they just buy it blindly. There are many different things that can occur where a car will become damaged. The most common cause is an accident. Then there are other types of damage that can occur like something falling on the car. Or, perhaps by vandalism. Then another possibility is the car getting flooded.

Do Insurance Companies Cover Flood Damage?

The thought of flood damage to your vehicle might not occur if you live in a province or region that doesn’t flood that much. However, flooding can happen anywhere. On occasion, it does happen in areas where it is not frequent.

Yes, insurance companies do cover flood damage. However, only if you have opted in for this type of coverage. Just because you have insurance, it doesn’t mean that it will include coverage for this mishap.

Mandatory Insurance

Most drivers know that the law states they have to have insurance if they are driving in Canada. They are only required to have the basic insurance. Often drivers are not aware of exactly what this covers. What the mandatory requirements are can vary in each province.

The mandatory insurance has various types of coverage:

Third Party Liability:

This section of the insurance coverage gives you financial protection. If you have caused the accident and there has been personal injury or someone lost their life. In Ontario for example, you must have no less than $200,000 coverage.

Accident Benefits Coverage:

This coverage covers costs that come with different types of care. It is for an injured person that needs attention. Such as medical costs and rehabilitation if required. Also, an injured person might need care by an attendant. If so the Insurance will cover this. The requirements for this may vary throughout Canada. In Ontario it is mandatory.

Uninsured Automobile Coverage:

It is the law to have basic vehicle insurance in Canada. There is a possibility a driver may be driving without it. It is illegal, but it can happen. In this case, the mandatory insurance you have will cover you. Being as it is part of the basic insurance, it might not be enough to cover all of your costs.

Direct Compensation –Property Damage:

If someone else is at fault for the accident, the basic insurance covers you. Insurance coverage is there if you are not able to use your vehicle. Coverage is also in place if you had damage done to items inside the car.

Is Water Damage Covered by Auto Insurance – With the Mandatory Insurance?

As seen in the overview of what basic insurance covers, water damage is not included in this. Yet, insurance companies do offer this coverage. It means that you need to add additional insurance to your basic insurance.

Car Insurance And Driving Through Flood Water

It may be that you are in a situation where you have no choice but to drive through flood water. Perhaps there is no way for you to turn around and go back. There is a good chance your car will receive some damage. If however, there are other options then it would be wise to take them.

Water Damage Car Insurance Claim

If you have vehicle damage because you have driven through flood water and you have insurance you can make a claim. If the Insurance Company determines you had other options, they could deny your claim.

Parked cars are at risk of flood damage. It doesn’t necessarily mean that the driver was driving through flood water. The insurance company needs to receive the claim from the car owner. It must take place before compensation is given.

The Insurance company will take all of the details. They may send out an assessor. Damage assessment is done by the Assessor.

Can a Car With Flood Damage Be Repaired?

Having a vehicle that covers flood damage is a relief. However, the question is can a car with flood damage be repaired? The answer is maybe. Although this is a challenge. It all depends on the type of car and how much water has affected the vehicle. Also, what areas of the car did the water damage.

Doe Car Insurance Cover Water Damage Done to Engine?

Again, it will depend on the type of car and the amount of damage.

In most cases, the Insurance Company will not have the car repaired. They will give the policyholder the value of the car. Then the insured has to decide if they are going to buy another vehicle with this money.

In Ontario, it is actually illegal to drive a vehicle that has had flood damaged. This is one of the reasons why an Insurance Company may not pay for repairs but will insist on scrapping the car.

How to Get Flood Insurance on your Vehicle

Comprehensive coverage will give much more coverage than basic coverage.

It is the type of insurance that will cover damage to vehicles that is not caused by an auto accident. It includes coverage as a result of a natural disaster. In most cases, flooding would be classed as a natural disaster.

Don’t just assume that flood damage to your vehicle can only result in a hurricane or tornado. Which in rare in provinces like Ontario. It can happen as a result of significant hail damaging the vehicle and allowing water to enter.

Saving Money the Right Way

Some individuals feel they want to keep their costs down on their premiums. So, they may opt not to go with comprehensive coverage. However, shopping around for Insurance can prove to provide some significant savings. It is easy done by getting quotes on Insurance so comparisons can be quickly done. With the extra savings from shopping around it just might be enough to justify paying for the additional cost of the comprehensive insurance.

Resources:

http://knowhow.napaonline.com/car-flood-damage-repair-is-it-possible/
http://www.ontariomutuals.com/blog/think-twice-before-driving-through-a-flooded-road
https://mitchellwhale.com/auto-insurance/mandatory-vs-optional-coverage-ontario/
http://www.mto.gov.on.ca/english/vehicles/flood-damaged-vehicles.shtml

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