If you have any questions or concerns outside of the content available on this site, the Frequently Asked Questions below can help. If you have a question that has not been covered on this page, please contact your Business Development Manager or Personal Lines Manager.
We’ll continue to update the content on this page. Keep checking back regularly.
1. What is the Enhanced Water Damage Package?
The Enhanced Water Damage Package is an offering from Intact Insurance and Novex that that is is available* for homeowners (including secondary and seasonal homeowners broad form), condominium, tenant and rented dwelling policies. It consists of up to four components to protect customers in the event that water enters their dwelling: Sewer Back-up, Water and Sewer Lines, Overland Water (if eligible) and Ground Water (optional).
2. What is included in the Enhanced Water Damage Package?
Depending on the risk type, the Enhanced Water Damage Package includes Sewer Back-up (formerly known as Water Escape/Back-up), $1,000 towards Sewer Back-up Loss Mitigation measures available at the time of a Sewer Back-up loss, and Water & Sewer Line coverage. Overland Water coverage will be provided to the majority of customers, and the optional Ground Water coverage will also be available for Homeowner customers who are eligible for and have Overland Water coverage.
3. Is $1,000 for sewer back-up loss mitigation over and above the coverage amount, or is it included in the coverage limit?
$1,000 is provided for a sewer back-up mitigation device; either a backwater valve installed on the main line of the dwelling or a sump pump with a back-up system. This is an additional $1,000 over and above the amount of a covered sewer back-up loss.
4. If a customer already has a sump pump but it failed, could they use the $1,000 sewer back-up loss mitigation coverage to replace the existing sump pump?
Yes, the $1,000 toward a sewer back-up loss mitigation measure could be used to replace a faulty sump pump with a new sump pump and back-up power system, or if the customer did not have a back-up power system, they could use the $1,000 towards upgrading to a sump pump with a back-up power system.
5. Does sewer back-up loss mitigation have to be done immediately following the loss or does the customer have up to the limitation period to take advantage of this feature?
Yes, the limitation period applies. Ideally, they would install the sewer back-up loss mitigation device when the damage is being repaired.
6. Out of the two options that qualify for the $1,000 sewer back-up loss mitigation coverage, how does a customer know what the best option is for a mitigation device?
We recommend that your customers consult with a qualified plumber to determine that best option for mitigating future losses.
7. How has Intact Insurance/Novex determined eligibility for Overland Water coverage?
Using information from a variety of sources, we have ‘mapped’ the exposure to increased surface water or overland water losses into different territories that range between low, medium and high risk overland water territories. Nearly 90% of customers will be eligible for Overland Water coverage.
8. How is the Enhanced Water Damage Package launched for current customers?
By following the liberalization clause in our policy wordings, all Intact and Novex customers with Water Escape/Back-up coverage currently, automatically receive the benefits of the Enhanced Water Damage Package applicable to their dwelling / unit. This allows customers to benefit from the new product offerings prior to their renewal without any premium increases.
At renewal, customers will renew with the Enhanced Water Damage Package, which will also show on their renewal declaration pages.
9. How much Overland Water coverage will qualifying customers renew with?
Coverage limits for Overland Water are defined by the Overland Water territory a customer resides in. Customers living in high risk locations will not receive the Overland Water coverage.
Homeowner customers living in low risk locations will automatically renew at the same level of coverage they currently have under their Water Escape/Back-up coverage, up to their policy limits, and customers living in medium risk locations will renew with $10,000 coverage with the opportunity to purchase additional coverage.
Condominium and Tenant customers living in low and medium risk locations will automatically renew with Overland Water coverage up to the limits shown on their Coverage Summary page. However, the Overland Water coverage for Condominium Protection is limited to a maximum of $250,000.
Rented Dwelling customers living in low and medium risk locations will automatically renew with Overland Water coverage of $30,000.
10. Will customers be able to choose how much Overland Water coverage they want?
Homeowner customers in both low and medium risk Overland Water territories will be able to select the amount of coverage (in increments of $10,000) that is right for them, up to the limit of their Sewer Back-up coverage. Condominium, Tenant and Rented Dwelling customers cannot increase or decrease the Overland Water coverage provided.
11. Can brokers increase Overland Water for Homeowner policies by portfolio to match the Sewer Back-up limit, per Overland Water territory for a specific value in eligible Overland Water territories?
Brokers can increase the Overland Water coverage for Homeowner policies in eligible Overland Water territories by portfolio. The amount of coverage must be specific citing the Overland Water territory and coverage amount. For example, increase all Overland Water territory 2 risks to $30,000.
12. Under Ground Water for Homeowner risks, we’re covering damage from water through a sudden and accidental foundation crack. Does this mean we’re going to repair the foundation crack too?
No, we only insure the resulting damage. Damage to foundations is specifically excluded.
13. Under Water and Sewer Lines coverage, why are there exclusions for lines that run under a body of water?
Water or sewer lines that run under a body of water are excluded due to the difficulty in accessing the lines, as well as the increased cost associated with putting things back the way they were once the lines are replaced.
14. Is freezing of the water service line or sewer line that causes a rupture, covered under Water and Sewer Lines?
This is not excluded from the coverage.
15. Is the water and sewer line that runs to a lake for potable water covered under Water and Sewer Lines? The exclusion covers off running through or under a body of water, but is the portion that runs to the lake covered?
We have some risks up north where the potable water source is the lake. We would treat this as the public water supply system for these residents.
16. Does Water and Sewer Lines cover damage caused by tree roots?
If the tree roots have caused a collapse, break or tear in the line, then there would be coverage to repair or replace the damaged line. The cost of removing tree roots that are causing a blockage in the line would be at the expense of the homeowner and not covered by this product.
17. Will there be any changes to the existing Water Escape/Back-up coverage endorsement?
We have not made any changes to the eligibility, limits or rates for the Water Escape/Back-up endorsement. However, we have made some changes to the endorsement wordings to clarify the true intent of the coverage and better align with the IBC wordings. We have also changed its name from Water Escape/Back-up to Sewer Back-up.
18. What deductible will apply to the Enhanced Water Damage Package?
The deductibles for all applicable components of the Enhanced Water Damage Package will be subject to the Water Damage Deductible for Homeowner, Condominium and Rented Dwelling risks. Tenant risks will continue to be subject to the policy deductible for Water Damage losses.
19. How do Intact Insurance and Novex advise customers about upcoming changes to their coverage?
Intact and Novex include key messaging on the “Communication Page” of the new policy documents customers receive, along with endorsement wordings advising customers of their change in coverage. Various supporting marketing materials, including updated content on Intact.ca and Insurance is Evolving, are also available for brokers to use.
20. Can I remove Overland Water from the Enhanced Water Damage package?
The coverage is sold as a package to make the product easier for the customer to understand by linking similar coverage together. It also helps to limit a potential Error’s and Omissions exposure. Qualified customers who receive Overland Water as part of the package will not be able to delete the coverage. Homeowner customers have the option to ‘buy-down’ on coverage to a limit of $10,000, if they want to reduce their premium.
21. How does the Enhanced Water Damage package appear on the Declaration Page?
Customers see one premium for the Enhanced Water Damage package on their declaration page for the applicable coverages (incl. Sewer Back-up, Water & Sewer Line and Overland Water coverage). The optional Ground Water coverage for Homeowner risks prints with its own premium if purchased by the customer.
22. Will Guaranteed Replacement Cost and Single Amount continue to apply?
Yes, we have not removed these important claims settlement options for your customers.
23. Does the 168 hour clause include Ground Water coverage as well?
Yes, the 168 hour clause will also apply if the customer has purchased Ground Water coverage. The 168 hour clause applies to all coverages within the Enhanced Water Damage Package, including optional Ground Water.
24. What does it mean for my customers, now that the heating season exclusion has been removed from the policy wordings?
Previously, if your customer went away for more than 4 days during the heating season, they were obligated to take one of the following actions in order to retain water damage coverage as a result of frozen pipes:
Going forward, your customers will have greater peace of mind as they will not need to worry about these actions in order to retain coverage. However, we still strongly encourage you to advise your customers to take the appropriate precautions to protect their homes and their possessions at all times.
25. When coverage is liberalized prior to a renewal, due to the liberalization clause, what wording should apply?
Prior to the policy renewal, both the Water Escape/Back-Up and the Enhanced Water Damage Package wording shall apply and coverage should be determined based on what benefits the customer.
26. Is broker training for the Enhanced Water Damage Package available?
Yes, broker training is available. Please contact your Business Development Manager to arrange a session.
27. What marketing and communication materials are available to brokers?
We have an array of product pieces available to help you explain, educate and sell this coverage to your customers. In addition to the standard suite of collateral, we also provide digital mediums including an educational series, web copy and articles you may include on your website as well as Insurance is Evolving and Intact.ca.