Allstate Canada says water damage claims from external flooding nearly doubled in 2025

New data from Allstate Insurance Company of Canada (Allstate Canada) revealed a sharp rise in water-related home insurance claims for 2025, as well as a concerning gap between risk awareness and prevention.

Allstate Canada home insurance claims due to external water sources, including heavy rain, overland flooding and sewer back-up, nearly doubled (increased 94 per cent) in 2025 compared to the previous year. Damage due to water originating from outside the home accounted for nearly a quarter (24 per cent) of all home insurance claims in 2025. Looking longer term, water damage represented more than 40 per cent of all home insurance claims between 2021 and 2025, with external water sources responsible for nearly one-third (31 per cent) of all water-related claims during that period.

While flooding continues to be a risk to Canadian homes, the results of a Léger survey conducted on behalf of Allstate Canada show that:

• More than half of Canadian respondents (53 per cent) do not plan to take any steps to protect their homes from flooding this spring.
• Concern does not always translate into action, as 34 per cent reported they are worried about flooding, yet many still plan to do nothing.
• Among the 47 per cent who do plan to take at least one preventive measure, the most common action cited is clearing gutters and drains themselves (26 per cent).
• Only 17 per cent who are planning preventive action say they intend to hire a professional, suggesting many households may be underestimating the level of prevention required as weather-related risks intensify.
  
  

Rethinking Flood Prevention: Acting Before the Damage Occurs

“Water damage is one of the most common reasons Canadians file an insurance claim, making prevention no longer optional, but essential,” says George Ljubicic, Agency Manager at Allstate Canada. “What we’re seeing is that many Canadians recognize the risk, but we’re reminding them how important it is to take concrete steps to protect their homes. Small actions taken early can make a meaningful difference before the spring thaw."

The survey also highlights gaps in insurance awareness. One in four respondents say they are unsure whether their home insurance policy includes coverage for flood-related damage. Overland water and sewer back-up coverage is optional for many home insurance policies, underscoring the importance of reviewing coverage before an incident occurs.

Simple Preventive Steps Canadians Can Take Ahead of Spring

With warmer temperatures on the way, Allstate Canada is encouraging both homeowners and renters to take proactive steps now to help reduce the risk of flooding and water damage:

• Review your insurance policy to understand what types of water damage are covered and where gaps may exist with optional coverage.
• Keep water moving away from your home by cleaning gutters and downspouts and ensuring downspouts extend 2-3 metres away from the foundation.
• Prepare drains and sump pumps by testing sump pumps (consider investing in a battery backup) and clearing debris from floor drains and window wells so water can flow freely.
• Communicate early with landlords by reporting leaks, standing water or drainage issues as soon as they appear. Early action can prevent minor issues from becoming costly repairs.