Is Toronto’s record Jan. 26 snowfall turning into claims?

A week-and-a-half after a record 56 cm snowfall blanketed the Greater Toronto Area (GTA), claims reports continue to trickle in to adjusters’ offices. The storm was reportedly the heaviest since record keeping began in 1937.

“While some of the anticipated impacts are beginning to take shape, this still has not materialized into a full [natural catastrophe] Cat event at this point,” says Michael Connolly, ClaimsPro’s vice president for Atlantic Canada.

Related: ‘Historic’ Ontario snowfall’s impact on claims…so far

So far, last week’s storm hasn’t yet driven significant loss activity, adds Christine Segaric, ClaimsPro’s director of Cat response.

“That said, this type of event often has a delayed claims profile. The greater risk window is typically tied to a rapid warm-up, rain falling on an existing snowpack, or repeated freeze–thaw cycles,” she tells Canadian Underwriter. “Those conditions tend to surface issues such as roof load concerns, ice damming, seepage, and resulting interior water damage — often after the snowfall itself has passed.”

Car claims

On the day after the storm, Ontario’s provincial police reported more than 200 vehicle collisions due to the snowfall.

“On the auto side, we are starting to see early indications of increased activity, consistent with expectations following a snowfall of this magnitude — particularly in urban centres like the GTA where the event was outside the norm,” says Connolly.

“That said, the data is still developing, and it’s too early to quantify the full impact with confidence.”

Other industry sources say they’re not yet seeing auto claims above what’s normal for the season, but indicate that’s expected to change.

Related: Heavy snow, extreme cold continue for parts of Atlantic Canada under weather warnings

Waiting game

For the time being, Connolly says the extreme cold temperatures driven by polar vortex activity in many parts of North America “are currently causing more operational and claims-related challenges than the snowfall itself.”

But that could change quickly, he adds, in the event those regions hit hard by snow “experience a sudden rain event or rapid temperature swing.”

Plus, says Greg Smith, president and CEO of Crawford & Company, Canada, the very cold temperatures can delay claims from things like frozen pipes, which eventually cause water damage, and ice-damming of eavestroughs, which causes water to seep behind a house’s shingles.

CAIB New Edition 1.0 – a New Standard for Broker Education Image

Insights Paid Content

CAIB New Edition 1.0 – a New Standard for Broker Education

Preparing brokers to navigate an increasingly complex insurance landscape.

By 

Sponsor Image

Related: Polar vortex snows offer opening to review homeowner coverage

“We often see a lag between the snow event and claims reporting as the damage may take some time to manifest itself and in some cases will only appear as temperatures increase and the frozen pipes or ice-dams begin to melt,” he tells CU.

Homeowners also should be mindful of snow-load damage to roofs that’s caused by the weight of fallen snow, Smith adds. “Many insurers advise homeowners to safely remove excess snow from their roofs [or] to engage a qualified contractor to assist.”

Phil Porado

Phil, an award-winning journalist with over 30 years of experience in financial topics, has been managing editor of Canadian Underwriter for more than three years.