Water Loss Prevention: Top 10 Tips for Homeowners to Prevent Flooding

Guest Blogger - Alex Byrne, The Co-operators Insurance - Water-related loss is the most common home insurance claim in Canada. It is also among the most expensive types of loss. According to the Insurance Bureau of Canada, Canadian insurers pay an average of 1.7 billion each year due to water-related home insurance claims.
 

Every home is at risk of basement flooding, even if you have never experienced flooding in the past. Water in your basement is most likely to occur when there has been heavy rainfall, snow melting, or during a spring thaw. No one can control the weather but there are some steps that you can take to prevent, or at least reduce the chance of water damage.

To help you start thinking about steps as a homeowner that you can take to help prevent water damage in your home, check out the list below: 

10 tips for homeowners to help prevent basement flooding

1. Contact your local government to get information on any available programs on reducing basement flooding.
2. Have a plumbing inspection done on your home to determine best options based on the plumbing and sewer connections of your home. These can include:
1. Installing a backwater valve.
2. Installing an automatic back-up pump to your existing sump pump if you have one. Batteries or a generator can be used to power the back-up pump.
3. Improve the drainage outside of your home by:
1. Keeping weeping tiles clear and in good repair.
2. Making sure your downspouts drain water away from your house.
3. Disconnecting downspouts from sewers.
4. Making sure your grading allows for correct drainage.
5. Install window wells at basement windows to create an extra barrier to keep water out.
6. Keeping outside drains clear.
4. Use a rain barrel to catch water run-off from downspouts.
5. Avoid storing items directly on the basement floor. Always store on shelves and in watertight plastic containers, whenever possible.
6. Make sure you have at least one floor drain in the same room as your washing machine.
7. Avoid pouring all fats, oils and grease down your drains. You would be surprised how quickly the deposits add up, and can cause a blocked drain or pipe.
8. Check that hoses on dishwashers and washing machines are made of braided stainless steel.
9. If you have a water dispenser and/or ice maker in your refrigerator, make sure the water line uses either copper or braided stainless steel.
10. Seal any cracks in foundation walls and basement floors.

Benefits of loss prevention

We all know that accidents and storms happen; but you can play a vital role in preventing water damage to your property. Take action to try and limit potential damage to your property. Some benefits of loss prevention may include:

• Possible discounts
• Access to higher limits of coverage 
• Potential municipal programs available to compensate homeowners who install loss prevention devices (refer to your local municipality for information on programs).

Visit bennettpros.com for all your real estate needs.

Mortgage FAQs

Once you find your dream home in Ottawa you will need to look at your different mortgage solutions.

Mortgage solutions are provided by many bankers and mortgage brokers in Ottawa and other cities in Canada. Though there are many things you have to consider about mortgage payments, there are a few questions that are frequently asked by Canadians who are looking for a good mortgage plan and payment solution.

Why hire a mortgage broker when the Bank is there?

When you deal with a bank for the mortgage solution, you are bound by the list of products they have. It is possible that the list does not have the best solution for you. Also, banks have to think about their profit margin and will offer you the highest rate that is acceptable to you. A mortgage consultant on the other hand will have a list of lenders and mortgage products. You could potentially benefit from lower interest rates. However, if you are buying a new home or condo that is not built and you require a pre-approval letter, you must go through a bank, because a mortgage broker cannot guarantee the rate for long enough.

What fee charges are involved?

Typically there is no fee. The lenders who receive your mortgage application hand a certain amount of commission to mortgage consultants. If your application is not accepted because of job instability or bad credit, you are subjected to brokerage fee.

Do I have to wait for my mortgage to mature?

It is not a good idea to wait for that long. You should inform your mortgage consultant around 4 months before the time of maturity of your mortgage. During this time, the consultant can easily shop for other mortgage rates and your mortgage will be easily transferred if there is a possibility.

I recently heard of Mortgage Loan Insurance. What is it?

Mortgage loan insurance is required by law and is provided by three major companies in Canada: AIG Insurance, Genworth Financial Canada and Canada Mortgage and Housing Corporation (CMHC). Do not confuse this with mortgage life insurance. Here the lenders are ensured against default on mortgages with an 80% ratio of loan to value. Borrowers pay insurance premium between 0.5% and 3.7% which is directly added to the mortgage account.

What is a high-ratio mortgage and how is it different from conventional mortgage?

Conventional mortgage is the typical mortgage where the down payment is equal to 20% or more of the property’s purchase price and there is no mortgage insurance required for it.

High-ratio mortgages are where the down payment is less than 20% of the purchase price. You are required to attain mortgage loan insurance from one of the three companies that provide insurance. The borrower is allowed to purchase the house with a small amount of down payment and the lender is also protected with the loan insurance.

What form of down payment is acceptable?

If you have cash, then it is good. If, however, you do not have cash, you can use:

•             Accumulated savings

•             Sales proceeds that you gain from an existing house

•             Your Registered Retirement Savings Plans (RRSP). Up to $20,000 can be used for down payment and if it is repaid within 15 years it will not be subjected to income tax.

•             Investments that are not registered

•             Borrowings from an unsecured Line of Credit.

Visit www.bennettpros.com for all your real estate needs.