What’s the Liability?

As a personal Host, you do have potential liability for bodily injury or property damage to third parties which arises out of the negligent serving or distribution of alcohol at your party, be it a small backyard BBQ setting, or a holiday gathering. The insurance provided by most home/condo/tenants insurance policies may protect you from a liability claim arising from a private social gathering in your home, but you should confirm this with your broker/agent first.

As a business or non-profit organization, it is very important that you review your insurance protection first with your broker or agent if you have any plans to host such an event. While some commercial insurance policies are able to accommodate an event involving liquor, additional information may be required to endorse the policy accordingly. In some cases, host liquor liability is expressly excluded and must be arranged by your Broker for your function.

Liability for claims arising out of social hosting can arise from many different avenues, including:

• Server – Serving people past the point of intoxication;
• Occupier – Whether you own the space or are temporarily renting the venue, you have responsibility for protecting the people on premises from harm;
• Employer – You have a responsibility for your employees at staff functions.

Special Occasion Permit

Functions with more attendees, ticketed events, or those involving the sale of alcohol may require the purchase of a Special Occasions Permit. SOPs allow for the sale and service of alcohol on special occasions, and are required any time alcohol is offered for sale or is served anywhere other than in a licensed establishment (eg. bar or restaurant), or in a private place (eg. office or home). Special Occasion Permits are available from the Alcohol and Gaming Commission of Ontario (link) and are reviewed and approved based on the nature of your function.

Party Alcohol Liability Insurance

Party Alcohol Liability insurance is a low-cost policy, designed to provide protection when lawsuits are brought against individuals, organizations, or companies who host events with alcohol service. This is typically provided when you are in a situation where an SOP is required, such as weddings, stag & does, banquets, dances, socials, cocktail/Holiday parties, etc. Contact your Broker to request a quote.

Risk Management & Avoiding Issues

Here’s some advice for curtailing over-consumption of alcohol:

• Be aware of the designated drivers in attendance. If other guests are unable to drive safely, the DDs may be able to help
• Provide non-alcoholic drink and food options to all guests throughout the party
• Implement a cut-off time for alcohol service, even at private functions. For example: stop serving alcohol some time before you expect your guests will leave. You may also serve other drinks, like coffee or tea, and encourage guests to have water.
• Be prepared with excess cash to offer to pay for guests’ cab rides if necessary. You may also have extra space set up in your home to house last-minute overnight guests.
• Have no reservations about asking for someone’s keys if you suspect they are too intoxicated to drive.
• If alcohol service is being provided at a larger function, or one involving an SOP, ensure that servers are Smart Serve certified.
• The legalization of cannabis adds an additional layer of complexity, as guests may mix intoxicants. Keep a keen eye on your attendees to watch for over-consumption.

What To Do In A Claim

In the event of a claim, here’s what to do:

• Contact your representative at Cade as soon as possible.
• Make a note of all the relevant details of the incident, including the date, time, witnesses’ names and contact information.
• Don’t confess liability; always direct any discussions with the claimant to your insurer for further comment.

Whatever the occasion, be wary of how much your attendees are drinking. It is your responsibility to ensure your guests are having a good time in a safe manner. Take the lead on educating yourself and your team about what you’re responsible for when holding a party. Be prepared with several methods of getting your guests home safely if they are too intoxicated to drive themselves and others.

Get in touch with us today at clientservices@cadeinsurance.ca to discuss how to prepare for your next event.

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PREPARING YOUR VEHICLES FOR WINTER

• Winter Tires – Winter tires should be near the top of your list when planning for winter. While all-season tires claim to be capable year-round, the soft rubber composition of winter tires allows for increased contact and therefore traction on the road during the cold of winter. Improved traction means better control and shortened braking distances.
  • If you have Winter Tires for your vehicle, you may qualify for a modest discount from your insurer on the renewal of your policy. Generally, to be eligible for the discount, you must have a set of four tires specifically designed for winter (not all-season) on your vehicle from November to April. We recommend you keep your receipt for the purchase or installation of the tires, if the Insurer requests them. Winter tires usually have a lifespan of about 5 years, so be sure to get your tires inspected or replaced regularly. The average Winter Tire discount is about 2% – 3%. If your vehicle qualifies for this discount, give our office a call or email so that we can apply the discount on renewal.

PREPARING YOUR HOME FOR WINTER

• Eavestroughs – Heavy snows can lead to a build-up of debris on your roof and a fast melt can test the drainage of even the most recently updated roofs. Be sure to clear out your eavestroughs of falling leaves and other clutter to minimize any backing up and potential leakage or drainage issues. Some home insurance policies include exclusions for water damage arising from the backing up of eavestroughs, so this maintenance is important. Be sure that all eavestrough drains run away from the foundation of the home as well.
• Heating System – No one wants to come home to a home without heat in the winter. Now is the time for a maintenance check of your furnace or other home heating system. If your furnace is over 20 years old, it is even more important to have the unit inspected annually for the sake of safety and continued operation.
• Fireplaces & Woodstoves – If you have a wood burning unit in your home, be sure to have the chimney inspected and cleaned regularly by a WETT-certified contractor. (www.wettinc.ca lets you search for a local contractor). During the significant power failure in Toronto in the winter of 2013, many homeowners found themselves turning to fireplaces that hadn’t been used or cleaned in years. This is extremely dangerous, as a buildup of residue in the chimney can cause a significant fire hazard. Regular cleaning and maintenance is key!
• Driveways, Walkways & Sidewalks – With the snows of winter comes everyone’s favourite chore – shoveling! Be certain you have the tools necessary to maintain your driveways, walks and any sidewalks you may be responsible for clearing. Slip & fall claims are far more common in the winter, so ensure that your property is properly cleared and salted when necessary.
• Prepare for Power & Service Failures – Recalling the power failures of the past few winters which left homes without power for several days, we have all learned it is best to be prepared in case this coming winter creates another power failure. Be sure that you have enough supplies to last at least 3 days. The Ontario Government has some resources available to help you plan for an emergency, including building a kit and keeping necessary supplies on hand. If your power does fail, pay close attention to your plumbing system. Once the temperature of a home begins to drop, the chance for freezing in pipes skyrockets with a potential for significant water damage when the pipes thaw and rupture. If you suspect your heat will be out for a while, drain your plumbing system completely including all appliances to prevent this freezing damage. Learn more about freezing pipes here.

• Storing Seasonal Vehicles – Your summer cars, motorcycles, ATVs and other recreational vehicles are just about due to be put away for the winter. Conducting the storage maintenance routine specific to your vehicle now can prevent damage during the winter and make bringing the vehicle back out in the spring much easier.

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Resultant damage caused by the freezing of any plumbing, heating, air conditioning systems or other household appliance in your home or cottage can cause serious havoc to you and your family, and often a significant financial impact if it is not insured. It is important therefore to understand that there are steps that should be taken to minimize the potential for loss. While we are all able to prepare for scheduled departures from our home, an unanticipated power outage or equipment failure during our absence will leave the home vulnerable to unexpected freezing temperatures. To prevent water damage resulting from freezing temperatures, if you are considering a trip during the winter months where the home will be unoccupied, we recommend you either:

• Ensure your plumbing system is shut off and the water is drained from all appliances; or
• Arrange for someone to enter and check your home every day while you are away to ensure heat is maintained and no issues are apparent.
• If you have a centrally monitored alarm system for fire/burglary, we also encourage you to consider adding a low temperature alarm sensor as part of the monitored service.

While this is a generalization of an exclusion common across most Insurers, it not identical to every property owner. Be sure to speak with us if you have any questions about this exclusion or the specific coverages of your policy.

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In addition to providing you with peace of mind, knowing that the safety of your home is being monitored 24 hours a day, the installation of a centrally monitored alarm system for burglary and/or fire can open up further discounting opportunities with respect to your home insurance premium. The improved security offered by such systems can help reduce your annual premium by making your property more secure and mitigating certain losses such as theft, burglary, and fire damage.

A point to consider: If your home is currently equipped with a monitored alarm system or you are looking to install one, many insurers are offering improved coverages for your home and personal possessions if a monitored temperature alarm is also in place.

As always, please feel free to contact our office if you have any questions with respect to how the installation of an approved centrally monitored burglary, fire, and/or temperature alarm will affect your home insurance.

We here at Cade know how important your home is to you. By making sure your home is safe, sound, and secure, we can work together to get you the most effective rate for your home insurance.

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Having the unique property of expanding while freezing, water puts a tremendous amount of pressure on whatever is containing it, including the metal and plastic piping found in your home.

While frozen and burst pipes can occur anywhere, some pipes are more prone to freezing than others due to their location.  Pipes that are located outside or that run against exterior walls that contain little or no insulation are at high risk of freezing during prolonged cold weather as well as those that are located in unheated interior areas of the home such as basements, crawl spaces, attics, garages, and under kitchen cabinets.

In order to help mitigate the chance of frozen or burst pipes, here are some helpful tips and tricks that you can try at home:

• Keep your garage doors closed as much as possible
• Open kitchen and bathroom cabinets in order to allow warmer air to circulate around the plumbing
• Use rigid foam insulation to close and seal all foundation vents that are near water pipes
• Wrap high-risk pipes with pipe insulation which is widely available at your local hardware store
• When an especially cold spell is expected, let the cold water drip from the faucet farthest from your main water intake valve.  Running even a small amount of water through the pipes helps prevent freezing and can also help you detect a frozen pipe if the flow of water changes (the first sign of a freezing pipe is reduced water flow).
• Make sure to keep your heat on, even when you are not home.  Setting your thermostat no lower than 13°C/55°F helps protect against frozen pipes.

If you happen to find yourself with a frozen pipe, here are some methods to help thaw out the affected area:

• Apply constant heat to the affected area that is closest to the faucet using a good hair dryer or an electric heating pad.  Do not leave the pipe unattended while you attempt to defrost it using one of these tools.
  *Do not use a blowtorch or any other open-flame device to defrost a pipe.
• Keep faucets open.  As you defrost the frozen area and the water begins to melt, it will begin to flow through the pipe helping melt ice in the affected area.
• If you are unable to locate the pipe that is frozen, contact a licensed plumber.

If the worst occurs and a pipe bursts in your home, shut off the water at the main valve, call your plumber, and contact your insurance broker.

In terms of your homeowners insurance coverage, losses during the normal heating season relating to frozen pipes that are located within a heated portion of the dwelling hold insurance protection provided that you have not been away from your premises for more than 96 consecutive hours.  If you are planning on a trip, please be sure to take at least one of the following precautions in order to ensure that your coverage remains in place:

• Shut off the water supply to the home and drain water from all systems and appliances: and/or
• Arrange for a competent person to enter your dwelling daily in order to ensure that heat is being maintained.

We here at Cade hope you (and your home) stay nice and warm during this chilly time!  As always, if you have any questions regarding frozen pipes or the coverages provided by your habitational insurance policy, please feel free to contact us.

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In the wake of the July 2013 rains and subsequent water damage, we have witnessed significant talk of change throughout various government agencies and in the insurance industry as a whole.  With a record-breaking $3.2 billion in claim payouts related to severe weather events in 2013 alone, it is certainly understandable that insurers in Canada would invest a significant amount of time into reviewing changing weather patterns and the frequency and severity of related claims.  Unfortunately, we are beginning to witness such events of significance which once took place every 40 years now every 4-6 years, and the insurers are responding with new limitations and exclusions specifically with respect to water.

Throughout 2014, most Insurers have introduced various changes or made clarification to their residential property policy wordings including: lower limits available for damage by sewer back up; higher deductibles for water damage; reduced discounting with respect to claims; new geographical territory definitions.

As we all know, water is an unwelcome and costly visitor to your home.  In recognition of this, the City of Toronto has introduced a subsidy program to assist the owners of single-family, duplex, and triplex residential homes with a financial subsidy of up to $3,400 per property to install sewer backup mitigation devices such as a backwater valve, a sump pump, and pipe severance and capping of the home’s storm sewer or external weeping tile connection.

For further information on the City of Toronto’s Basement Flooding Protection Subsidy Program, please visit the following page:

https://www1.toronto.ca/wps/portal/contentonly?vgnextoid=30ee7c6a9967f310VgnVCM10000071d60f89RCRD&vgnextchannel=f041ffa6ee33f310VgnVCM10000071d60f89RCRD

Whether this program applies to you or not, we here at Cade would like to respectfully encourage you to consider mitigation measures for water losses.  If you would like to discuss some of the benefits or the insurance implications of such installations, please do not hesitate to contact our office.

The post Toronto Homeowners: Take advantage of Toronto’s Basement Flooding Protection Subsidy Program and help protect yourself against sewer backup losses! appeared first on Cade Associates Insurance Brokers Limited.

The short answer is that the price of your home on the real estate market and the cost to rebuild it are not related.  Consider the variances when looking at purchasing a 2750 sq/ft house in Courtice vs Etobicoke.  While the market value tends to run higher in Etobicoke when compared to Courtice, the cost to rebuild the same 2750 sq/ft home in either location would be relatively equal.

The Longer Answer

Market value has no bearing on your home insurance.  It is simply the price someone is willing to pay for your property.  When trying to arrive at an insurable value for your home, insurance brokers are equipped with evaluation tools which calculate the cost to rebuild your home with like kind and quality, taking into consideration inflationary rates of construction materials and labour.

Here is a brief list of some of the factors that are considered when calculating the rebuilding cost of your home:

• Material costs to rebuild today
• Labour costs to rebuild today
• Demolition and debris removal – the cost of removing damaged and undamaged portions of the home and the cost to remove debris from the property.

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1. Cottage Opening

• If the warming weather takes you out to your seasonal cottage property, we suggest you take a look at our notes regarding opening the cottage. There are several things to consider to help mitigate the risk of future losses

2. Summer Cars

• For many, the rising temperatures mean it is time to pull their favourite vehicle out of storage. If your summer ride is a seasonal car that has been away for the winter, be sure to give us a call to add road coverages before you hop in the driver’s seat.
• Always be sure that your car is fully prepared prior to driving. Ensure all fluids are fresh and full and that the car is properly insured and licensed. Remember, if you have removed road coverages from your insurance policy for the winter, there is no insurance protection on this vehicle until your broker confirms it has been added back. Be sure to contact us before driving.

3. Boats

• As with your summer cars, make sure that boats are properly prepared and serviced before putting them back in the water.
• Check for any visible signs of damage that may have taken place over the winter and take out-of-water photos for your records.
• If you have replaced an engine, hull, or added significant equipment to your watercraft, be sure to contact us so that we may ensure coverage is adequate prior to your boat going back in the water.

4. Eavestroughs

• As winter and spring melt away, significant debris can collect on your roof, eavestroughs, and other parts of your property. Be sure to clear away any of this debris and any other obstacles that may prevent water from flowing away from your home

5. Renovations

• If the warmer weather signals your opportunity to finally make those home improvements you have been planning for so long, be sure to let us know. Certain coverages in your home insurance policy may not apply while under construction unless the policy is properly endorsed. Always be sure to advise your broker prior to beginning any work that is structural in nature or that may increase the rebuilding value of your home by more than $10,000.

6. Landscaping

• If the summer includes new landscaping for your home, be sure that any plans include good drainage routes that encourage water to flow away from the home and the foundation.
• If the exterior brick or wood siding of your home continues at or below the level of the soil, it can cause moisture to enter the material over time, eventually destroying it and allowing water into the home. This exterior material should be monitored frequently for signs of deterioration. At the first sign, a contractor should be called to provide alternative weather proofing solutions.

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