The greatest threat to your home…

Posted by on April 26, 2010 in Real Estate

…is actually not fire or theft of property but water damage.  On August 19, 2005, Toronto experienced up to 150 mm of rain in a 2-3 hour period.  The Insurance Bureau of Canada estimated $40 million of water damage claims were paid to compensate insurance policy-holders from mostly basement damage. The City of Toronto alone spent $34 million to fix the damage.  An insurance broker recently commented to me  that home insurance policies were originally drafted for fire damage in mind. But, with advances in home building technology, the greater worry for insurance companies is water damage.

As we move into spring and summer, water damage tends to manifest itself in two distinct ways. The first is obvious basement flooding. The second, and less obvious, is mold damage which occurs when moisture accumulates either from outside or inside and there is not sufficient ventilation to expel the moisture.

The issue with mold damage is many insurance companies will not cover damage if mold pre-existed a flood. For example, a poorly designed home may not ventilate moisture properly; a bathroom without a ventilation fan is a good example. Alternatively, the homeowner may not have used a particular room much and not noticed that mold had grown before flooding occurred.

Canada Mortgage and Housing Corporation has very good tips to fight mold in your home and what to do in the event your home is flooded. Good luck.

6 Comments on The greatest threat to your home…

By Canadian Personal Finance Blog » Blog Archive » Random Thoughts for Tax Day in Canada on April 30, 2010 at 2:50 am

[...] the Spring The greatest threat to your home is water (in fact all year round) points out Thicken My Wallet. Given the damage a foundation leak [...]

By Finanical Ramblings on May 2, 2010 at 8:44 am

[...] The greatest threat to your home @ Thicken my Wallet. Water damage? Really? Shoot! [...]

By Canada.CreditCards.com on May 3, 2010 at 5:08 pm

Every new homeowner should be handed a copy of those mold fighting tips when they close on their home. Good stuff.

By This and That: Market roller coaster, fat fingers and more… | Canadian Capitalist on May 6, 2010 at 10:37 pm

[...] Thicken My Wallet points to some resources to fight mold damage in your home. [...]

By This and That: Market roller coaster, fat fingers and more… | MoneySense on May 7, 2010 at 8:09 am

[...] Thicken My Wallet points to some resources to fight mold damage in your home. [...]

By Dino on July 9, 2010 at 2:07 pm

Water damage, really? Good to know. We have actually had more rain in TO in June, then we did at the same time in June of 09.

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