SWG Property: Flood Coverage Could Be an Approved Part of Your Next SWG Property Policy

Mar 2020

Canada is feeling the effects of climate change more intensely than its neighbour to the south. Thawing permafrost, earlier spring runoff, milder winters with more rainfall, and rising sea levels are just a few examples of how Canada has experienced the impact of a changing climate. (1) For property owners, this means damage to local infrastructure, through events such as flooding, are becoming a more frequent and less predictable risk.


According to the National Observer, urban and coastal regions alike have been hit with “more abnormally intense” flooding in recent years. As flooding zones have changed drastically, property owners have been left to buckle under the weight of unexpected property damages and diminished property value. (2)


Flooding coverage could be a requirement in a client’s insurance policy, depending on the individual risk, construction, occupancy, and town grade of the property. While flooding and earthquake coverage is determined by SWG Underwriting, it is beneficial for brokers entering this market to be aware of the changing regional landscapes that will affect a property’s risk of damage.


Other Risks in the Property Market


Flooding can lead to both short and long-term damage of the structure of the property and its contents. Other property risks include the following:


● Weather events can also cause loss of profit due to business interruption, or the need to take unanticipated measures to mitigate flood risk.

● Damage can also render a dwelling or commercial unit uninhabitable, resulting in profit losses, business interruption, or inconvenience to the renter.

● Flooding and other weather events can trigger other unfortunate problems such as sewer backups, that result in property needing to be repaired or replaced.

● Properties with commercial occupants or patrons, such as hotels or rented dwellings, need protection from accidents that cause damage to the property, lost or stolen property.


A Closer Look at SWG Property


SWG Property: Commercial Property insurance is designed to cover hard-to-place property accounts. SWG can accommodate most realty-type risks, from stand-alone rentals and vacant dwellings, to large commercial risks, with an in-house capacity of up to $6,000,000.


We cover most types of commercial property, including but not limited to:

● Apartment Houses (with/out commercial occupancies)

● Campgrounds

● Faith Organizations

● Food Trucks/Hotdog Carts/Chip Trucks

● Hotels/Motels (without restaurants)

● Rented Dwellings

● Retail Stores

● Rooming Houses

● Student Housing

● Vacant Property


Coverage Highlights:

● Broad Form or Named Perils

● Replacement Cost


● Dependent on individual risk, construction, occupancy and town grade


Any required flooding coverage needs to be reviewed and approved by SWG Underwriting. Other coverages include Business Interruption and Crime, including Employee Dishonesty & Broad Form Money & Securities, and Mechanical Breakdown.


Most realty-type risks are written on a “Premises” type form. Visit our website for more information.


Content is current as of the date of broadcast and is subject to change without notice.



  1. https://globalnews.ca/news/5918981/climate-change-impact-across-canada/
  2. https://www.nationalobserver.com/2020/02/10/news/what-are-flood-maps-your-property-value-depends-them-and-they-may-be-dangerously