The Insurance Bureau of Canada’s Consumer Information Centre reported an increase in inquiries about insurance claims related to frozen and burst pipes, which are common concerns during the winter months.
Last year, a cold front swept Western Canada and the Prairies, prompting Environment Canada to place large portions of Alberta and Saskatchewan under cold weather warnings.
According to the IBC, damage resulting from extreme cold is typically covered under standard home insurance policies. However, it stressed that insurance coverage does not change with the season or specific temperatures. Rather, policies outline various perils, such as water damage from burst pipes, wind, hail or fire, which are typically covered if they occur due to cold weather.
When it comes to frozen and burst pipes, standard home insurance policies usually cover the resulting damage if the pipes are in the heated portion of the home and reasonable steps are taken to maintain heat, the IBC said.
However, if a furnace or heat pump breaks down and causes frozen pipes, insurance will cover the damage but not the cost to repair or replace the furnace or heat pump. This is typically considered a maintenance issue, and most home insurance policies do not cover the repair of a broken furnace or heat pump.
To prevent frozen pipes in the event of a furnace breakdown, the IBC advises homeowners to shut off the water supply and drain the pipes. Alternative heat sources, such as a fireplace or space heaters, can be used to maintain warmth until the furnace is repaired or replaced, it added.
In the case of a vacant home, it is important to shut off the water supply and drain the pipes to prevent freezing. Additionally, homeowners planning to be away should check their insurance policy, as most policies require regular checks to ensure heat is maintained. Most policies exclude coverage for frozen pipes and water damage if the home is vacant, even with permission for vacancy.
To avoid frozen pipes, homeowners should take steps before temperatures drop, such as insulating pipes in vulnerable areas like exterior walls, basements, and crawl spaces. Sealing drafts around windows and doors and knowing where water shutoffs are located can also help prevent issues.
In the event of frozen or burst pipes, most insurers offer 24/7 claims reporting, so homeowners should contact their insurance provider as soon as possible to begin the claims process, the IBC said.
High winds during winter also pose a risk, with potential damage to homes and vehicles.
Most home insurance policies cover damage from wind, including damage caused by flying debris, such as branches and trees, and damage from water or snow entering the home through openings caused by wind or hail. Additionally, homeowners may be entitled to additional living expenses if they cannot return to their home due to insured damage.
Meanwhile, for vehicles, damage from wind, hail, ice, or water is typically covered under comprehensive or all-perils auto insurance. These coverages are not mandatory, so vehicle owners should check their policy for details.
As Canadian winters become increasingly harsh due to changing climate patterns, the IBC is urging homeowners to winterize their homes, take precautions to avoid slips and falls, and practice safe driving to protect themselves, their families, and their property.
