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INDUSTRY NEWS
22
T H E C A N A D I A N
HOME INSPECTOR
Winning the War on Water
Canada’s insurance industry offers some tips to help homeowners fight the
growing problem of water damage.
Every day, home and property inspectors meet
homeowners who could potentially be facing
the heartache and headaches caused by water
damage.
As severe weather continues to make headlines,
Canada’s insurance industry knows that water
damage is an issue of growing concern for hom-
eowners. Insurance Bureau of Canada (IBC), the
national trade association for private home, car
and business insurers, is hoping to enlist part-
ners such as CAHPI and individual home and
property inspectors to help tackle the problem
by offering homeowners some simple solutions.
Home and property inspectors, with their exper-
tise and knowledge of risk management, can
provide prospective home buyers with valu-
able information and insight. They can help
consumers evaluate risks in the home and pro-
vide important suggestions and advice on how
to keep water from damaging their home and
belongings. Inspectors can also educate home
buyers about the information insurance compa-
nies will look for in order to provide adequate
coverage. The insights that home inspectors
provide about the risks and details of a home
will better prepare homeowners for a thorough
discussion with their insurance representa-
tives to ensure that their new home purchase is
properly protected. Check out the handy Home
Assessment Checklist on our web site. It clearly
outlines all the information a homeowner should
have at his or her finger tips when shopping
for insurance for a new home. (http://www.
ibc.ca/en/Home_Insurance/Home_Insurance_
Explained/itv.asp)
A watery problem
The evidence tells the story. It is no secret that
the frequency and severity of natural disasters
are on the rise in Canada. Severe weather is hit-
ting our communities in many different forms.
Serious weather events that use to happen once
every 40 years are now happening every six
years in some regions of the country.
Today, more claims are the result of water
related issues, such as rainstorms, melting
snow, and increased precipitation. These are all
growing concerns. The issue of water has, if you
will pardon the pun, reached its boiling point.
But why?
Water damage is now the leading cause of
property damage in Canada, costing insurers
approximately $1.7 billion per year. Infrastruc-
ture failure is to blame for most of the damage
caused by flooding, the result of severe weather
events in recent decades. In 2007, the Federa-
tion of Canadian Municipalities released a study
they had commissioned from McGill University,
to assess the municipal infrastructure deficit
in this country. The findings are sobering. To
quote the executive summary directly: “Across
Canada, municipal infrastructure has reached
the breaking point. Most was built between the
1950s and 1970s, and much of it is due for
replacement.”
Unfortunately, homeowners are in the dark
about this risk. IBC recently conducted a pub-
lic opinion poll to gauge consumer attitudes
towards a number of issues. Extreme weather
and the damage it can cause was one of many
topics. And here is a rather concerning statistic:
82% of Canadians are confident that the sewers
in their neighbourhood will be able to handle the
amount of water produced through storms over
the next decade. But the sad reality is that Can-
ada’s water infrastructure is woefully outdated
and simply can’t handle the increased volume.
Water damage not only creates an inconvenient
mess, but it has the potential to cause some
much more serious problems. Repeated water
damage, especially the kind associated with
chronically wet houses, could lead to increased
respiratory problems; cause long-term damage
to the foundation that may not be covered by
insurance; result in increased insurance rates
to compensate for repeated claims; significantly
increase the homeowner’s minimum deduct-
ibles; and negatively impact the property value.
But it’s not all bad news. There are steps hom-
eowners can take to prevent further water dam-
age, and that same poll tells us that if Canadians
know their properties are at risk, they will take
steps to protect them. So Canada’s property
and casualty insurers are leading the charge
to encourage communities, households and
individuals to adapt the way they live and the
way they build, to minimize the impact of natural
disasters associated with extreme weather. And
home and property inspectors are perfect part-
ners to help us pass this useful information on
to homeowners.
Presenting homeowners with
solutions
Insurers and home and property inspectors
have a lot in common. Our main goal is to pro-
tect our clients from risk. This synergy provides
tremendous opportunity for IBC and CAHPI to
work together, to educate homeowners on many
topics.
Helping homeowners to prevent water damage
in their homes is a number one priority for IBC.
And it’s not just about weather-related water
damage. A burst washing machine hose can
leave a wrath of destruction, especially if the
laundry room is located on an upper level of the
home. It doesn’t matter from where the water
originates, the results are the same.
It is also important to note that homeowners
who are proactive and take steps to prevent
water damage will see the benefits from an
insurance perspective. For instance, a home
equipped with a backwater valve is less likely to
experience a sewer back up than a home with-
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