Does Car Insurance Cover Flood Damage?

Heavy rainfall and flash floods do not frequently occur in Canada, but one must always be prepared for every situation. 

There is always news about the damage caused by floods in one or other parts of the country. Both scenarios can severely damage your vehicle. Therefore, getting car insurance for floods or related damages to your vehicle is important. 

Here is everything you need to know about making a car flood damage insurance claim in Canada. 

If you are looking for the most affordable car insurance Alberta has to offer, you can start comparing quotes by contacting an online insurance brokerage, like Surex. They are a trusted insurance brokerage where you can compare quotes from various insurers.

Does car insurance cover flood damage in Canada?

Yes, car insurance covers damages caused by flood depending upon the insurance cover purchased by the individual. However, flood damage is covered only in case the car owner has signed up for comprehensive coverage. It covers the damages caused to the car by natural calamities, including cyclones, earthquakes, floods, etc. 

Flood damage causes severe damage to the vehicle and reduces its value, leading to expensive repairs. In severe cases, it results in total asset loss if the damages are beyond repair. A comprehensive car insurance policy with flood damage cover may increase the policy cost. But a car flood damage insurance claim proves to be money-saving and cost-effective.  

Types of flood damage

Generally, the following damages are caused to the vehicle by floods or heavy rainfall. 

• Gearbox damage: Water in the gearbox results in its malfunctioning, making the unit completely or partially unusable.
• Engine damage: If the water seeps into the vehicle’s engine due to flood or heavy rainfall, it could cause total or partial damage to its internal parts.
• Upholstery damage: Water ingress in the car’s interiors is likely to damage the soft furnishings, including seats and carpet, and cause dampness.
• Electric and electronic damage: Water damages the electronic and electrical functions of the vehicle. It may also lead to severe possibilities, such as short circuits in the car’s electrical components. It could also result in the dashboard’s malfunction.

Flood damage car insurance add-on covers

Comprehensive Insurance is a base plan that provides auto insurance coverage for the damages that occurred due to flood damage. However, it doesn’t cover all losses or damages caused by floods or heavy rainfall. 

Hence, extending the base plan by including any of the following add-on covers to your existing comprehensive Insurance is advised. These add-ons will strengthen your auto policy.

Engine protection cover

The automobile’s engine can easily get damaged due to flood water ingression or non-usage. Modern car engines are not only powerful but expensive too. A basic comprehensive insurance plan doesn’t cover damages that occur in the car’s engine. However, if you Engine Protection Cover to your insurance coverage, you’ll get funds for replacing or repairing damaged engine parts.

Zero depreciation cover

The automobile’s parts depreciate due to daily wear and tear. It results in a decrease in the car’s value. Depreciation on cars can be as high as 20% per year. On adding Zero depreciation cover, your insurer will pay the entire value of the car repairs and not for the depreciated value. 

For example, if the purchase value of your car was $50,000 2 years back. Considering a 20% annual depreciation, it is worth $30,000 now. If it is destroyed in flood, you’d typically get only $30,000 (or less). However, with a zero depreciation cover, you can claim the entire $50,000.

Return to invoice cover

If your car is totally damaged during a flood, you can get the entire invoice value of the car reimbursed along with registration and other taxes. However, this is one of the most expensive covers. It only makes sense to add this coverage if you live in a high flood-prone area.

Roadside assistance cover

This add-on cover gives emergency assistance to the car owners or drivers, such as towing services in case your vehicle is stranded because of the floods. In addition, the policyholder also gets other advantages, such as tire service, minor repairs, fuel fill, and more. 

Consumables cover

It covers the replacement cost of consumable items like engine oil, grease, lubricants, nuts and bolts, gearboxes, and more. These aren’t covered in the base plan. The consumable cover protects these expenses incurred during floods or natural calamities.

Key replacement cover

Modern car models come with sophisticated keys. Though they come with advanced features, their replacement and repairs cost a lot. Key replacement covers the replacement or repair expenses of the lockset or the car key when it’s damaged during floods.

How to register an insurance claim for car flood damage?

Here is the procedure for submitting a car flood damage insurance claim:

Step 1

Inform your insurer immediately through email or call. Alternatively, you may visit your insurance provider’s office to inform the Company about the car damages and collect details of the claim process.

Step 2

Gather all the evidence of the accident. Take videos or click pictures of the damaged vehicle.  Collect all the necessary info, including the car’s registration certificate, car owner’s driving license, soft copy of the policy document, and evidence related to the accident. 

Step 3

To raise the claim for damages, access your car insurance account through the company’s official website. Answer the questions related to the accident and then upload a soft copy of the documents required for registering the claim. A company representative will connect you with the rest procedure for settling the claim.

You can’t predict the disaster, but with auto insurance cover for floods, you can save yourself from heavy car repair expenses due to flood damage. Wet boots, slush, and salt severely damage the wiring or electronics of the car’s floor panels. Replacement or repair of these components is expensive. 

Besides the insurance coverage, you can also take some small preventative measures to eliminate or reduce the severity of the damages. 

For example – you may install rubberized mats fitting your car’s floor to extend its life. Regular maintenance and fewer damages to the car over time are likely to retain the resale value of your asset. Moreover, it will help maintain the car’s look and functioning.