Homeowners face insurance hikes, legal action following extreme weather

TORONTO – Following an extreme weather event, like the ice storm in Ontario last month, homeowners may be on the hook for increases to insurance premiums and ensuring their properties aren’t hazardous to others.

Even before the ice storm hit, 2013 was a record-setting year for natural disasters and the insurance claims that followed them.

In 2013, insurance companies paid out around $3 billion in claims. It was the fifth consecutive year where insurance companies paid out $1 billion or more for natural disasters.

The cost of natural disasters, like the ice storm and last year’s flooding in Alberta, often gets passed on to the consumer in the form of higher premiums.

“As claims costs increase or decrease, premiums will follow. It’s a natural evolution,” said Pete Karageorgos, manager of consumer and industry relations at the Insurance Bureau of Canada.

While the industry group doesn’t comment on specific premiums, Karageorgos said costs will drive prices in the insurance industry.

Some homeowners in Alberta saw increases of 20 per cent following the flood.

Intact Financial Corp., one of Canada’s largest property and casualty insurers, raised premiums by 15 to 20 per cent during the past few months as catastrophic losses and weather-related claims have risen.

Legal ramifications of slippery sidewalks

Experts warn that homeowners must ensure their property isn’t a safety hazard during slippery winter weather, as slips and falls could lead to legal action, which in turn could raise their homeowner insurance rates.

Personal injury lawyer Sandra Zisckind said that property owners who don’t remove ice and snow from their property and sidewalks could be held responsible if someone fell on their property and decided to sue.

“A postal worker, a flyer distributor, all of these people can come on your property. They are considered invitees on your property. If they fall and they sue you, your homeowners insurance rates will respond,” said Zisckind.

Zisckind said that even if you were away during a winter storm, it’s the homeowner’s responsibility to make sure proper provisions are in place before leaving, such as cancelling mail delivery while you’re away.

“Better be safe than sorry. Sand and salt as much as you can, keep it as safe as possible because if you don’t, you’re on the hook.”

She said cities and municipalities are also responsible for making the sidewalks and roads safe to travel, however legally they are given a break in extreme situations like the ice storm.

Whereas the city would normally have around 48 hours to respond to a storm, homeowners have a shorter time frame to make their properties safe.

“[The cities are] given less of an onus, the courts give them a break, because basically they say the city can’t be everywhere at all times.”

But homeowners must clear their property within a “reasonable” amount of time, which could be as early as 7 a.m. following a storm.

With files from The Canadian Press