Article from Volume 11, Issue Number 1, 2024

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Leaving For The Winter

By Seth Henoch | Other articles by Seth Henoch | Feature

Make sure you know what your policy covers

If you’re a snowbird and going on vacation in the winter, you need to be aware of provisions under your condominium unit owner’s insurance policy relating to damage caused by freezing.

Condominium owners have condo owner’s policies with various insurance companies. The policies have many different wordings and they may have different limitations and subjectivities. It’s important to know what your responsibilities are if you’re going to be away during “the usual heating season,” which in Manitoba is typically from October to May.

All unit owner policies contain an exclusion for damage caused by freezing during the usual heating season. An example could be that the insurance company does not cover loss or damage caused by freezing within a heated portion of your dwelling if you have been away from your premises for an extended period of time. The amount of time is determined by individual policies; some set the time as more than four days, others two days, etc. Be sure you know what the time limit is in your policy.

Your policy might allow for continued coverage under certain circumstances.

For instance:

• If you arranged for a competent person to check your unit while you’re away. How often depends on your insurance contract. Some may say every two days, some may say every four days, etc.

• If you shut off the water supply and drained all of the pipes and domestic water containers, or if your plumbing and heating systems are connected to a monitored alarm station providing 24-hour service.

If there is water damage caused by freezing, the condominium corporation’s policy will cover any damage to your unit, possibly including unit owner improvements (depending on how the bylaws read), subject to a deductible. If you did not comply with the subjectivities for this and are away for an extended period, you may not have coverage for:

• Damage to personal belongings

• Additional living expenses

• Deductible assessment

It’s therefore strongly recommended that you refer to your insurance contract or contact your insurance agent to see what provisions will grant continued coverage while you’re away soaking up some sun.

Condo corporation policies are a little different. Insurance companies consider a building or unit “vacant” after 30 days. Then you will see exclusions 

• To pipes caused by freezing occurring while the “Building” is under construction, renovation, repair or “Vacant” even if we have given permission for construction, renovation, repair or vacancy. This exclusion also applies to any self-contained suite or unit in the building

• While under construction, renovation, repair or vacant. This limitation applies immediately upon vacancy

• Property at locations which, to the knowledge of the Insured, are vacant, unoccupied or shut down for more than 30 consecutive days

Under the Red River policy, “vacant” means the occupant(s) has (have) moved out with no intent to return, regardless of the presence of furnishings, “stock“ or “equipment.” A newly constructed “building” is considered “vacant” after it is completed and before the occupant(s) move(s) in. Furthermore, the “building” is also vacant when the occupant(s) move(s) out and before any new occupant(s) move in, or if the business is unoccupied or shut down for more than 30 consecutive days.

So if you will be away for more than 30 days, issues could arise if you are not having someone look after your condo while you’re gone.

It isn’t cut and dried, but it’s good practice to shut off your unit’s water and have someone look after your unit to avoid any potential issues with policy wording interpretations. We have argued that if a unit is still furnished and the owner intends to return, it isn’t vacant, but it can go back and forth with wording interpretations. It’s safest to just take precautions and not put yourself in a position where you might face coverage issues.

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Seth Henoch has been a director of CCI Manitoba since the fall of 2022. He now serves on the Membership and the Sponsorship and AGM committees. He has been with BFL Canada as an insurance professional for the past decade and can be contacted by email at shenoch@bflcanada.ca.