As a homeowner, it’s critical to understand what may not be covered under your Home Insurance Policy, especially with more of us working from home or running small businesses. For most Home Insurance Policies in Canada, these top six items are likely not covered. To be sure, please check your policy or call your Insurance Broker.
Flood & Earthquakes
In the last few years, Canadians have experienced severe flooding in Ontario, Quebec, Alberta, New Brunswick, British Columbia, and Manitoba. Flood or overland water is excluded from your policy; however, due to this emerging threat to homeowners, insurers are now offering flood insurance coverage as an additional cost. Contact your broker to ask how you can purchase this coverage if you feel at risk. Keep in mind that it will be more difficult to qualify for this coverage if you live close to a lake, river or floodplain.
Earthquakes are considered catastrophic and excluded from your policy, along with earth movement, which includes earth shifting and sinkholes. While these occurrences are not typical in Canada, some companies offer earthquake coverage for an additional premium, and the deductible is typically quite high.
Pest Infestation
A standard home insurance policy does not cover damage caused by “pests.” The removal of any of these animals or pests is also not covered. Since infestations and the resulting damage are usually considered matters of home maintenance, the responsibility falls on the homeowner to pay for repairs or pest control measures. The best defence is a good offence – stay on top of home repairs and schedule an inspection if you suspect you may have a problem.
Freezing of Indoor Plumbing
Most homeowners are unaware that being on vacation or away from their home during the winter months requires someone to visit your home to check your furnace and ensure water pipes are not frozen. If your plumbing freezes while you are away and you did not have someone checking your home every four days, most policies would not cover the cost of repairs. If you are away for less than four days, the exclusion does not apply.
A Vacant Home
If you leave your home for 30 days with no intention to return to it (for example, you bought a new house and put your old one up for sale), there is no coverage after 30 days. Most insurance companies will offer limited coverage; however, you must notify your insurer before leaving it vacant. Insurance companies view vacant homes as ideal targets for arsonists and vandals as no one is there to check on the house.
Mould
If you suddenly find a mould problem in your home, your insurance company will have no part in the cleanup or repairs. According to your insurance company, mould development means that you were not properly maintaining your home. You will have to pay for any repairs, regardless of how or when the mould developed.
Home-based Businesses
You need to notify your insurer if you have a home-based business or start-up. Home insurance is not business insurance, and using your home for any business-related purpose could void your home insurance policy. Speak to your broker or insurance company to find out what additional insurance you may need, depending on the nature of your business. For example, working at a computer all day is very different than operating power tools. And bringing clients to your home for a business meeting can be risky without personal liability insurance. If that client were to slip and fall, you might be dealing with an expensive claim without the proper coverage.
When it comes to home insurance, knowledge is your best friend. Understanding what is and is not covered will help you adjust your policy where needed.
