The majority of Canadians are aware of the basic coverage provided by their home insurance policy. For instance, we all know we’re covered against fire, but do you know what you’re not covered for?
The weather patterns in Canada are changing, and extreme weather occurs more often. So if you encounter a problem with your home, don’t wait until it’s too late to find out you’re not protected for something. It’s just as vital to know what you’re not covered for as it is to understand what you are.
Common Home Insurance Exclusions
Your home insurance policy has what is known as exclusions, which are things that your policy does not cover. The following are among the more common exclusions:
- Flood-related water damage: A sewer backup is not the same as a flood. Flood exclusion is intended for flooding that occurs over land, such as from a lake or river. No insurance company in Canada covers this type of flood damage.
- Wear and tear: Your home insurance policy is not a fund for home maintenance. As a homeowner, you have a responsibility to maintain the condition of your home. For example, if you have a sink leaking for months and you haven’t repaired it, your insurance provider will reject your claim for water or mold damage.
- Damage from landslides, snow slides, and other types of earth movement, such as earthquakes: Damage caused by earth movements, such as a fire or explosion, may be covered. Some insurance providers provide coverage for earthquakes. Contact your insurer if you live in a region where earthquakes are likely to make sure you are covered.
- Insect and rodent-caused damage (for example, mice, termites, birds, etc.): You will not be covered if raccoons or squirrels enter your attic and cause damage. Ensure there are no holes in your roof through which animals can enter by inspecting it regularly. If you come upon a gap, patch it to protect your property.
- Indoor plumbing damage caused by freezing: You’re covered if your pipes freeze and burst. However, your insurance policy might not cover the water damage if you go on vacation during the winter. This is because insurers have mandated that homeowners cannot leave their homes uninhibited for more than four days at a time during the winter months without losing benefits for burst pipes. You must either shut off your water and drain your pipes or arrange to have your home inspected daily by someone to check that the heat is on and working correctly. If freezing-related damage occurs despite these preventive measures, some insurance policies may cover the costs. As a result, it’s a good idea to double-check with your insurance agent or broker. To keep robbers out of your home, this person can also check your mailbox, shovel your walkway, and clear snow around your home.
Your insurance agent is available to assist you and answer any questions you may have. Talk to your insurance provider or broker if you want to know more about your insurance, including what’s covered and what isn’t.
And check our home insurance comparison tool to find the best insurance corresponding to your needs.