Family Shocked by $100K Water Damage Bill Due to Insurance Gap
A Nova Scotia family learned a harsh lesson about insurance coverage after a burst pipe led to a potential $100,000 repair bill for their rental property.
As Sarah Ryall and her husband prepared to sell their Cole Harbour, N.S., home, they were caught off guard when a pipe burst, causing extensive water damage. The couple, who had owned the home for nearly two decades, were relying on the sale to secure their financial future.
On a Sunday morning in mid-February, Sarah Ryall received a frantic call from the property manager. “All I could hear was, ‘Oh my God! Oh my God! Oh my God! There’s water everywhere,'” she recalled.
The damage was significant. Three copper water pipes carrying scalding water to radiators had burst, turning the house into a steam room. The family’s insurer, Co-operators, was contacted, and crews were called in to mitigate the damage. Initially, the Ryalls were told the repairs would cost about $90,000, but then came another shock: their insurance wouldn’t cover the repairs due to a change in material risk involving the property’s vacancy.
According to the Ryalls, the insurer stated the property had been vacant for over five days, despite Tom Arnold, a friend and contractor, visiting daily, along with tradespeople, real estate agents, and potential homebuyers. This invalidated their claim.
Amanda Dean, Atlantic vice-president for the Insurance Bureau of Canada, emphasized the importance of notifying insurers of any material changes. She noted that insurers will then discuss preventative measures.
Fortunately, after CBC News contacted Co-operators, the Ryalls received a call from a company executive, and the insurer reversed its decision, agreeing to cover the damages. Co-operators stated the timing was coincidental but that they were pleased to have resolved the matter.
“It was a huge weight taken off of our shoulders, and we are so thankful to the Co-operators for working with us now to make sure that we can get these repairs done to our home and restore it to the condition that it was in before this happened,” said Sarah Ryall.
In a statement, Co-operators reminded consumers of the importance of reviewing their policies and notifying their insurance companies of any changes.
Sarah Ryall hopes her experience will inform others about potential limitations in insurance coverage, particularly concerning vacancy policies or changes in material risk. She wants other people to know about potential issues they could face with water damage and home vacancy.
