Aviva Canada claims data show increased frequency, severity of water claims costs

Forty per cent of Aviva Canada’s home insurance claims are a result of water damage, the insurer reports, and costs to repair the damage have nearly tripled over the past decade.
Aviva Canada paid out over $124 million in property water damage claims in 2010.
The insurer’s data show the average cost of a water damage claim rose 160% over 10 years – from $5,423 in 2000 to more than $14,000 in 2010.
Aviva attributes the increase and severity of water damage to an increased frequency of severe rainstorms, inadequate municipal infrastructure to handle these storms, and the trend of homeowners investing more money in finished basements.
“It’s no secret that water damage to the home is on the rise, both in frequency and severity,” says Wayne Ross, vice president of property claims for Aviva Canada. “The growth can be attributed to two main causes.
“First, we’ve seen an increased frequency of severe rainstorms compounded by the lack of sufficient infrastructure in most communities to handle large amounts of water in a small period of time.
“The second key factor behind the dramatic increase is the amount that homeowners are investing in finishing their basements.”
The regional breakdown of the increase in the average cost of water damage claims Aviva Canada paid between 2000 and 2010 is included below:
•British Columbia 205%
•Alberta 183%
•Ontario 182%
•New Brunswick 120%
•Quebec 117%
•Nova Scotia 68%
•Newfoundland and Labrador 51%