Polar vortex snows offer opening to review homeowner coverage

Heavy snows that blanketed much of southern Ontario and parts of Quebec with a metre or more of snow over the weekend might have clients thinking about how to avoid insured damage to their homes in the wake of bad weather.

Or maybe they’re just thinking about how to find their cars.

Although a recent Insurance Bureau of Canada report shows Canada sustained $2.4 billion in insured losses due to severe weather last year, a pair of reports from rate aggregators suggest homeowner policies might not be top-of-mind for clients. And that can open the door to conversations.

Coverage gaps often show up during winter months, says Daniel Ivans, an insurance expert at aggregator Rates.ca.

“Winter brings a unique set of risks that many homeowners don’t consider until something goes wrong,” he says. “Standard home insurance covers most sudden and accidental damage, but certain types of water and maintenance-related issues often fall outside that protection. Reviewing your policy now helps homeowners understand what’s included and where additional coverage may be beneficial.” 

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

He notes some common places where coverage gaps show up:

• Water damage caused by burst pipes is normally covered, but most policies don’t cover costs to repair or replace the pipes themselves. And if the home is unoccupied when pipes freeze and burst, coverage may be denied. “Many insurers require homeowners to either turn off the water supply or have a trusted person check the property daily during extended absences,” the rate aggregator notes.   
• Repairs are generally covered for a roof collapsing under weight from snow or ice, or if ice buildup causes water to seep through openings. But any damage caused by pre-existing wear and tear, such as prior leaks or missing shingles, isn’t covered.
• Repairs for damage caused by trees or branches falling on an insured home or nearby structure due to snow and ice are usually covered; and some policies cover debris removal. 
• Damage from winter winds or hail to siding, shingles, or windows is usually covered. “But older roofs may be subject to depreciation or higher deductibles,” Rates.ca says. “Cosmetic hail damage, such as minor dents or scrapes, is usually excluded.”
• Damage when surface water or melting snow enters a home at ground level is usually also on the ‘not covered’ list for standard home policies. Clients can fill the gap with overland-water or sewer-backup coverage. 

Lowering client risks

Plus, a recent Ratehub survey finds 70% of Canadian homeowners aren’t clear on what their policies actually cover. And, with winter storms getting harsher and household budgets getting tighter, too little knowledge can be a dangerous thing.

To help clients mitigate risk related to uncovered perils, Matt Hands, Ratehub’s vice president of insurance, offers some home maintenance tips to help your clients keep winter damage at bay. They include:

• Place valuables higher up in a room to reduce risk of flood damage.
• Use insulation sleeves or heat tape on any pipes, particularly in areas that aren’t heated. And, if you go on vacation, set the thermostat above 13 °C and leave cabinet doors under sinks open so air can circulate.
• Remove leaves and debris that prevent water from draining, and use a roof rake to remove heavy snow. Downspouts should extended two metres or more from the foundation so meltwater moves away from the house.

Related: Winter collisions provide a breeding ground for fraud, brokers warn

• Check walls around the house for cracks, gaps, or uneven ground. That’s where water can flow in. Caulk any cracks and slope the ground away from the foundation.
• If you have a sump pump, test it at least once a year and install a battery backup to cover power outages.
• Install smart valves that can turn off a home’s water supply if they detect leaks or burst pipes. When you shovel snow, don’t pile it next to exterior walls because meltwater will run directly to the foundation.
• Make sure the attic is ventilated to regulate temperature and prevent ice dams.