That distinction matters in Saskatoon because the South Saskatchewan River valley and low-lying areas carry real overland flood exposure, and CMHC requires coverage adequate to protect a lender's interest, against a home near the Saskatoon benchmark of $444,700, before it will fund a mortgage at all.
Adequate for the lender's purposes does not automatically mean flood-inclusive, so a buyer near the river valley should confirm the specific rider rather than assume a standard policy covers any water damage.
Ask your insurance broker directly whether overland flood is included or needs to be added separately. Get your hand-reviewed valuation from Joel Dyck.