The short version
Water damage restoration has two jobs: dry the building before mould gets a start, then put back what could not be saved. The insurance claim runs alongside it. On a standard Ontario home policy, water that escapes suddenly from plumbing or an appliance is usually covered. Water that leaked slowly for months usually is not. Sewer backup and overland flooding are usually covered only if you bought the optional coverage for them. Your own policy wording decides.
The first hours
- Stay clear of electricity. If water in the basement is above the outlets, baseboard heaters or furnace, or is near the electrical panel, do not go in. Ontario’s Electrical Safety Authority advises calling your local electric utility to disconnect the power, and having a licensed electrical contractor check the system before it is turned back on. Do not use anything electrical that has been in the water.
- Stop the water if you can do it safely. For a burst pipe or a leaking water heater, close the main shutoff valve, usually in the basement where the water line enters the house. If water is coming up through a floor drain, stop using taps and appliances, because that water leaves through the same drain.
- Photograph everything before anything moves. Every affected room, the source, the water line on the walls and damaged contents. Note when you found it.
- Call your insurer. Use the claims number on your policy and write down the claim number and the adjuster’s name. Ask whether they want to see anything before it is removed.
- Keep damaged items and receipts. The Insurance Bureau of Canada advises keeping damaged items unless they are a health hazard, and checking with your insurer before you throw anything out. Keep receipts for anything you spend on the cleanup.
Your policy also expects you to limit further damage, so extraction and drying normally start right away rather than waiting for the claim to settle. A wet basement left for a week usually makes the loss, and the claim, bigger.
What restoration involves, step by step
The sequence is much the same on every water loss. Our water damage restoration page shows how we run it.
- Assessment and extraction. The source is stopped or confirmed, and the water is classified: clean water from a supply line, grey water such as washing machine discharge, or sewage. Standing water is pumped and extracted first.
- Moisture mapping. Water runs under flooring, wicks up drywall and soaks into wall cavities well past the visible stain. Moisture meters show where it went, and the first readings set the baseline for drying.
- Drying with equipment. Air movers and dehumidifiers dry the structure in place. Readings are taken and logged daily until the materials are back to normal dry levels. That usually takes three to seven days. Hardwood, plaster and concrete take longer.
- Removing what cannot be dried. Soaked insulation, drywall that has stayed wet for more than a day or two, and swollen MDF trim usually come out. Drywall is often cut away above the water line, a “flood cut”, so the cavity behind it can dry. The readings decide what goes. Material that tests dry stays.
- Cleaning and antimicrobial treatment where needed. Sewage and outdoor flood water change the job: porous materials they touched are removed rather than dried, and the area is sanitized. Antimicrobial treatment is applied where the mould risk calls for it.
- Rebuild. Insulation, drywall, flooring, trim and paint go back once the readings confirm the structure is dry. Closing a wall over damp framing seals the problem inside it.
Why speed matters for mould
Health Canada’s guidance is that mould can begin to grow within 48 hours where there is excess moisture, and that a house and its furnishings are less likely to grow mould if they are dried within that time. That is why water damage is treated as an emergency. A clean-water leak dried in the first two days is usually a drying job. The same leak left for a week is often a mould remediation job, with containment, more material removed and a longer rebuild.
Clean water does not stay clean, either. The longer it sits, the more it picks up from the materials it soaks into, and the more of those materials have to be removed rather than dried.
Delay can also affect the claim. Mould that follows a sudden, covered leak that was dealt with promptly is often handled as part of that claim. Mould from water left to sit, or from a slow leak, is usually treated as maintenance. If you have already found growth, read what to do about black mould in the basement.
What Ontario home insurance usually covers
The Insurance Bureau of Canada puts it plainly: insurance is meant to cover sudden and accidental loss or damage, and a home policy is not a maintenance contract. This is how the common sources usually fall on a standard Ontario home policy:
| Where the water came from | Typical coverage | What to know |
|---|---|---|
| Burst supply pipe, failed water heater, overflowing appliance or toilet | Usually covered as sudden and accidental escape of water | Repairing the pipe or appliance itself is usually not covered |
| A pipe that froze | Usually covered if reasonable precautions were taken | If you are away in the heating season, many insurers require the plumbing drained or the house checked regularly |
| Slow leak, repeated seepage through the foundation, long-term condensation | Usually not covered | Usually treated as wear or maintenance |
| Sewer backup through a floor drain or fixture | Usually covered only with an optional sewer backup endorsement | Most insurers offer it; it is not part of a standard policy |
| Overland flooding: surface water from heavy rain, snowmelt or an overflowing river or lake | Usually covered only with an optional overland water endorsement | Often sold with sewer backup; may be limited or unavailable in high-risk flood areas |
A few points catch people out:
- Sewer backup and overland flooding are separate coverages, even when they are sold together. A policy with one may not include the other, so where the water came in matters.
- Water claims can carry their own deductible or limit. Some policies set a different deductible for water damage, and optional endorsements can have their own limits. Check the numbers on your policy declarations.
- Condos involve two policies. The condominium corporation’s policy typically covers the building and the standard finishes in your unit. Your unit owner’s policy typically covers your contents, your upgrades, and living expenses if you have to move out. A leak from the suite above can involve both.
None of this decides your claim. Your insurer does, from your policy wording and the cause of the loss. If you are not sure what you bought, ask your broker or insurer specifically about sewer backup and overland water before the next storm.
How YAREX works with your adjuster
We do not decide what your policy covers. What we can do is make sure the evidence in front of your adjuster is complete:
- We photograph and document the loss before anything is removed: the source, the water line and every affected room.
- We log moisture readings every day of drying. That log shows mitigation started promptly and the structure was dry before it was closed.
- We produce an itemized scope showing what was removed, what was dried and what has to be rebuilt.
- We meet the adjuster on site when that helps, and we can bill your insurer directly.
You choose the contractor, even if your insurer suggests one. The Insurance Bureau of Canada notes that your insurer estimates the damage, and if your contractor charges more than that estimate, you may be responsible for the difference. That is why a scope that can be compared line by line with the adjuster’s matters. Because YAREX is also a renovation contractor, the rebuild stays with the company that dried the house, with no handoff between a mitigation firm and a builder.
See how our water damage restoration service runs, or call (343) 947-2298 for help anywhere in Etobicoke, Mississauga, Brampton, Toronto and the GTA. If the water came from putting out a fire, read how a fire insurance claim works in Ontario, because firefighting water is usually part of the fire claim.
Published November 3, 2026.
The service behind this guide
YAREX Renovation & Restoration provides emergency water damage restoration across Toronto and the GTA from Etobicoke.
Water Damage Restoration in Toronto & Etobicoke
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