IBC issues warning over insurance coverage for generator fuel

Customers will need to check with their individual carriers as to whether they are covered

IBC issues warning over insurance coverage for generator fuel


By Lyle Adriano

With power outages still a problem in Ontario following the May 21 derecho storm, those relying on generators to provide emergency power may have to check with their insurers if their fuel usage will be covered, the Insurance Bureau of Canada (IBC) has advised.

Thousands of Canadian homeowners are still without power; CBC News reported that in Ottawa alone, some 3,000 Hydro Ottawa customers are still affected ten days after the storm. Some may be using their generators to keep their refrigerators and other appliances running, but the question of whether or not insurance will cover this fuel has come up.

According to IBC director of consumer and industry relations Anne Marie Thomas, homeowners insurance typically covers food waste, wind damage, and some cleanup costs. But coverage for generators and fuel is not a standard thing for policies.

"They could be," Thomas told CBC News. "I don't want to say everyone is going to be covered because … it's all dependant on the type of policy you bought, how much coverage your bought and are those things included as part of your coverage."

But Thomas did mention that renting a chainsaw or sump pump to limit damage to a property would be covered by homeowners insurance.

"By doing those kinds of things you are preventing further damage to your property and that's a good thing for you and your insurance company."

In a previous statement, IBC had advised all policyholders affected by the derecho to be mindful of any deductibles they have to pay prior to filing a claim.

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