Are home insurance clients ready for winter…or burglars?

Winter is coming. And the damage cold weather can do to homes can be some of the most expensive your home insurance clients will experience.

That’s bad, because a recent HomeStars.com survey reported on by the Winnipeg Sun finds 46% of Canadian homeowners have set aside less than $1,000 for emergencies. And 15% don’t have any savings.

What’s more, a new survey from Ratehub.ca says 70% of Canadian homeowners have little or no understanding of their policy exclusions.

Related: Claims blowing in from Ontario, Quebec’s weekend winter storm

The rate aggregator suggests a few ways homeowners can reduce winter damage. These are key messages for brokes looking to prevent claims from happening to their clients.

• Wrap exposed pipes in insulation sleeves or heat tape. This is especially important in unheated areas. When leaving for extended periods, keep the home’s thermostat above 13 °C and leave under sink cabinets open to let in warm air
• Before it snows, clean leaves and debris from eavestroughs and downspouts so water can drain. And use a roof rake after a snowstorm to remove buildup to reduce weight on the structure. Downspouts should extend at least two metres from the foundation to direct water away
• Walk around the house looking for cracks or gaps in the foundation, or unlevel ground where water can get in. Small cracks can be sealed with waterproof caulk. Slope the ground away from the foundation
• Sump pumps can save basements from flooding, and should be tested at least once a year. Consider a battery backup in case of power outage
• Automatic shut-off valves monitor a home’s water flow and automatically cut the supply if a leak or burst pipe is detected
• When shovelling snow, don’t pile it right next to exterior walls because melted water can run toward the foundation
• In basements, keep stored valuables elevated so they’re not damaged by flood water
• Make sure attics are properly ventilated to regulate temperature and prevent ice dams. A look for water stains or leaks before winter starts.

Battling break-ins

Another reason for Canadian homeowners to revisit their home coverage, particularly in Ontario, comes from Rates.ca. It finds a sharp increase of break-and-enters in Mississauga, Brampton, and Milton have homeowners there taking a second look at their policies.

“With theft claims on the rise, reviewing coverage and security measures has become increasingly important,” says Daniel Ivans who provides expert commentary for the rate aggregator.

“Making sure valuables are properly insured and taking simple preventive steps, like installing a monitored alarm system, can help protect homeowners and even lead to potential savings.”

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He offers several tips for homeowners to improve their insurance coverage and minimize risk of loss or damage:

• Standard home policies often set coverage caps of a few thousand dollars for art, collectables and jewelry. Clients with valuable items should asses those objects and explore endorsements that provide additional protection
• Assemble detailed records on valuable objects, including receipts, appraisals and photos. This will make the claims faster and ensure clients can prove ownership and the value of a stolen item
• Some insurers provide better premiums for homes with intrusion and security systems that are continuously monitored and installed by professionals. App-based notifications or systems generally don’t quality. So, Ivans suggests homeowners ask insurers if a system will be eligible before they make a purchase, and then inform their insurer at renewal time to make sure they get a discount 
• Homeowners should make sure policies include comprehensive coverage for break-ins and thefts – including damage to locks, doors, or windows from forced entries 
• Values for personal belongings and costs to replace them may increase over time, so homeowners should revisit coverage limits regularly. 

“Many homeowners assume their insurance automatically keeps pace with what they own, but coverage limits and risks can change over time,” Ivans warns. “Regularly reviewing a policy and making small improvements to home security — such as installing deadbolts; adding window locks or shatter-resistant film; and keeping entrances well-lit — can go a long way in protecting both property and peace of mind.”