Unexpected Water Damage and Insurance Coverage
In Lower Argyle, Nova Scotia, Sarah Ryall and her husband were nearing the sale of their rental property, looking forward to the financial security it would provide. However, their plans were disrupted when a burst pipe caused extensive water damage, resulting in a repair bill of approximately $100,000.
Some of the damage to the Ryalls’ rental property in Cole Harbour, N.S., is shown. (Hans Fanfon/CBC)
The couple, who had owned the home for almost two decades, relied on the sale to support Sarah’s role as a stay-at-home mother to their nine children and afford Tanner additional time with the family. But the burst pipes and subsequent damage led to a difficult discovery about their insurance coverage.
The Shocking Discovery: Change in Material Risk
In mid-February, a call from a friend managing the rental property brought the news: “Oh my God! Oh my God! Oh my God! There’s water everywhere.” After the initial shock subsided, the Ryalls learned that their insurance policy might not cover the damage because the home had been vacant for more than five days.
Sarah Ryall says she was shocked to learn that because her rental property had been vacant for more than five days in the eyes of their insurer, water damage from some burst pipes wouldn’t be covered. (Hans Fanfon/CBC)
The burst occurred in three copper water pipes that provided hot water to the home’s radiators. Contractor Tom Arnold found the house filled with steam and standing water.
This photo shows some of the condensation that accumulated on the ceiling on the main level from the steam generated by the water leaks. (Submitted by Sarah Ryall)
The couple’s insurer, Co-operators, sent crews to mitigate the damage. However, they were soon informed that the damage wouldn’t be covered due to a concept known as a ‘change in material risk’,
Insurance Bureau of Canada Weighs In
Amanda Dean, Atlantic vice-president for the Insurance Bureau of Canada, explained the importance of notifying insurers about any changes in material risk, including home renovations, extended trips, or properties on the market for sale. She emphasized that each situation is unique and requires conversations between the adjuster and homeowner.
Resolution and Lessons Learned
After CBC News contacted Co-operators, the Ryalls received a call from a company executive, stating that the damages would be covered. Though the company described the settlement’s timing as coincidental, the Ryalls expressed relief and gratitude.
These are the copper water pipes that burst and caused the home’s water damage. (Hans Fanfon/CBC)
Sarah Ryall hopes that by sharing her experience, others will become aware of potential limitations in insurance coverage, particularly regarding water damage and vacancy. She hopes to help at least one other person avoid facing a similar situation.
In a statement, Co-operators acknowledged the challenging situation and reminded consumers of the importance of reviewing insurance policies and notifying the company of any necessary changes to maintain adequate coverage.
