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New Canadian water product covers service line damage


March 9, 2018   by Jason Contant


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Allstate Insurance Company of Canada has launched a water protection package that “differentiates itself from others on the market” by offering service line coverage as well as sewer backup, overland water and sewer backup mitigation coverage.

On Thursday, Allstate Canada released Allstate Water Protection, which offers two new endorsements: Limited Sewer Backup and Enhanced Water Damage for Ontario, Alberta, New Brunswick and Nova Scotia homeowner, condominium and tenant policies.

David MacInnis, vice president of product operations with Allstate Canada, explained the two endorsements in an email to Canadian Underwriter. The Limited Sewer Backup endorsement covers damage caused by the escape of water from a sewer, drain, sump pit or septic tank, while also providing the customer with additional coverage to install sewer backup mitigation devices.

The Enhanced Water Damage endorsement, which includes all the benefits of Limited Sewer Backup, also provides customers with coverage for overland water and ground water infiltration, in addition to service line coverage, protecting the customer in the event there is a loss or damage to their covered service lines.

All told, Allstate is offering three different types of coverage: 1) sewer backup and overland water; 2) service line coverage; and 3) sewer backup mitigation coverage. “Allstate Canada’s Enhanced Water Damage endorsement differentiates itself from others on the market by offering all three of the coverages in one comprehensive product,” MacInnis said.

A press release from Allstate Canada added that the Limited Sewer Backup option covers water damage resulting from back-ups on municipal sewer systems or private septic systems and sump pump malfunction, in addition to providing customers with support to mitigate future loss (such as installation of a backwater valve).

The Enhanced Water Damage coverage protects homeowners against sewer backup, damage due to water overflow from a body of fresh water, heavy rain or rapid accumulation of ground or surface water, while providing mitigation for future loss. This package also offers customers coverage on expenses related to the repair or replacement of damaged underground service lines that may occur as a result of service line failure (including water, gas, electricity, cable and phone).

“Water damage has surpassed fire as the leading threat to Canadian homes, which includes damage due to rapid snowmelt, and excessive rainfall,” MacInnis said in the release. “Because water loss can come in many different forms, providing our customers the flexibility to customize their coverage based on their individual needs was a priority in the development of these new products.”


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1 Comment » for New Canadian water product covers service line damage
  1. Stephanie says:

    Intact has offered this coverage for a few years now. It may differ from other direct writers, but this isn’t new to the marketplace.

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