Canada has discussed a national flood insurance program for households without adequate private insurance options. However, while this program was expected to be introduced in 2025, as of September 2026, the program is still in development.
We looked into what’s happening with this initiative by combing through the 2026 National Adaptation Strategy progress report, the federal government’s 2024 flood-insurance announcement, Public Safety Canada’s Flood Risk Finder information and the Insurance Bureau of Canada’s water-damage guide. Here’s what we learned.
Check whether your home policy covers overland flooding or sewer backup and consider additional coverage where needed. We’ve outlined what is and isn’t included under your home insurance policy below.
Is Canada’s National Flood Insurance Program Available?
According to the government’s 2026 progress report, work to roll out the program is underway.
There is no way to apply for the program yet, and final eligibility requirements, affordability support and policy terms have not been published.
Why Flood Risk Differs By Address And Water Source
Properties that aren’t located near rivers can also be at risk of flooding. Flooding can be caused by a range of factors including heavy precipitation, quick snowmelt, inadequate drainage systems, river overflow, and coastal flooding. Public Safety Canada has a tool called the Flood Risk Finder, which provides information about coastal, riverine, and rainfall-based flood risk. Provinces and territories can opt in to the tool, so information may not yet be available for your area.
IBC says that while many insurers offer optional overland flood coverage for most homes, residential flood insurance is least available for homes with the highest estimated flood losses.
Read More: Read How Flood Risk Affects Housing Affordability
What Did The Federal Government Propose In 2024?
The current federal description is narrower and more cautious, focusing on helping high-risk households without adequate insurance.
Program design is still under way. In 2024, the federal government said it would invest $15 million to advance the low-cost program and work with provinces, territories, and the insurance industry to develop it.
| Program element | What has been proposed | What is confirmed for homeowners now |
|---|---|---|
| Flood reinsurance | A CMHC-related federal role would sit behind participating insurers. | No consumer policy has been published, let alone a launch date. |
| Affordability support | A separate subsidy for some high-risk households. | No final income test, cap or premium has been published. |
| Sales channel | Coverage through participating insurers and existing distribution | There is no universal route for homeowners to apply or participate at this time. |
| Coverage terms | Protection for households with inadequate access. | Perils, deductibles, limits and exclusions are not final. |
What Would The Proposed Program Change?
The proposed flood insurance program is not insurance you can purchase. It is an initiative that would fill the remaining insurance gap for homes at high risk of flooding. It may not cover all Canadian homeowners or protect from all water-related events. Details of any affordability support have not been finalized. The next section explains which coverage homeowners should check now.
What Coverage Should Homeowners Check Now?
The policy’s declarations page and any endorsements determine homeowners’ coverage for overland flood, sewer backup, groundwater, storm surge, and additional living expenses.
Check your policy for these types of coverages, as this proposal does not change your insurance policy.
| Water source | Wording to look for | Question to ask |
|---|---|---|
| Surface water enters at ground level | Overland water or overland flood | Does surface water entering at ground level include rainfall runoff, river overflow, or both? |
| Drain or sewer reverses into the home | Sewer backup | When a drain or sewer reverses into the home, is its limit shared with overland water? |
| Groundwater seeps through foundation | Groundwater, seepage or leakage wording | Is gradual seepage excluded? |
| Coastal surge or tidal water | Storm surge, tidal wave or coastal flood | Is this cause excluded even with a flood endorsement? |
| Home cannot be occupied | Additional living expenses | Does this apply only when the cause itself is insured? |
Read More: See How Overland-Water Coverage Works Today
What You Can Do Before The Program Launches
- Check with your insurer or broker to ensure you have the appropriate insurance coverage to protect your home. Ask for confirmation of the following in writing: water-related insurance endorsements, such as overland flooding and/or sewer-backup coverage; limits, including any combined limit; deductibles, exclusions and conditions.
- If your insurer offers options, compare prices for overland flood and sewer-backup coverage separately. A combined limit can leave less for the second source of damage.
- Keep a list of your belongings and take pictures/videos of the inside of your home; store this list somewhere other than your home. Ensure the limit of insurance on your contents (belongings) is adequate to replace all of your belongings.
- Check flood maps through your municipality and the province. Keep checking the federal Flood Risk Finder as jurisdictions begin to publish data.
- Find out if there are subsidies from your municipality for installing preventative measures such as sump pumps and backwater valves or undertaking other flood mitigation projects (check before installing).
Read More: Review Ways to Flood-Proof a Canadian Home