Insurance: Are you aware of the four day rule?

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When it comes to insurance, the four day rule is so simple, yet can cost you thousands of dollars in penalty if you don’t know about it. It is one of those fine print insurance clauses that you may not be aware of unless you are one of the few that reads their policy cover to cover and pays extra attention to the smallest details, or if you know someone that has, unfortunately for them, found out about it the hard way. You need to be aware of the four day rule so you do not end up with unnecessary financial dues. The four day rule is simply that, if you plan on leaving your home for more than four days, you need to have someone check inside your home while you are gone. You need to ensure that your home stays warm enough that the pipes don’t freeze in the winter, causing them to burst. This is a common issue in our Canadian climate. And you need to catch frozen or burst pipes quickly, before the water destroys your entire home and belongings. If you do not have someone checking your home and something does occur with your pipes, the insurance company can deny your claim based on your own negligence! Don’t be a victim.

Recently reported by CBC news, Grey Power, a Canadian insurance company, denied the claim of a Pembroke senior who was away for cancer treatments at an Ottawa hospital. In her extended and unplanned absence, a pipe burst and the homeowner, Ivy Scotland, was shocked to find out that she would not be covered by her insurance provider because her home was unattended for more than four days. She has always been extremely diligent about paying her premiums, and had a neighbour checking on the house and collecting her mail while she was receiving treatment at the hospital, however, she did not have anyone going inside her home. She had the coverage for water damage, but that small omission caused the claim to be denied and has left her with an extremely large bill for water damage.

It is that simple. Such a minor detail and yet it is something you, as a homeowner, need to be aware of in order to do your part and to protect yourself from unnecessary complications. You can go as far as shutting off the main water valve and emptying your pipes for increased protection against frozen pipes bursting, but you still should have your home checked on a regular basis if you plan on being away for any period of time.

You can give a key to your relative, friend or neighbour who is collecting your mail and checking on your house while you’re away. Have them step in to take a quick glance around and make sure everything is in order. It’s not just water to look for, the furnace may have shut off and the freezing temperature inside will indicate that a burst pipe is imminent. There may even be a robbery – many go undetected during long absences. There may be a power outage, gas or some other disaster that requires immediate attention, nevertheless, burst pipes need the most immediate attention because of their potential for causing damage.

If you’re a homeowner, you’ll want to protect your investment as well as your possessions. If you are a renter, you need to know that while your landlord holds the insurance policy for the actual building, you need to hold a policy covering your possessions because the landlord’s insurance does not cover your contents. Lastly, you still need to uphold the four day rule or the landlord may be looking at you to cover the extensive damages if the claim is denied.

Do’s and Don’ts to Remember

Do have someone check on your home while you are away.
Don’t just have them check from the outside, they need to go in to look around briefly.
Do make sure it’s warm enough even if you are not home. Insulate pipes on exterior walls and leave vanities and cupboards open so that warm air can circulate around the pipes.
Don’t turn off the furnace to save money. If the temperature drops, your pipes will burst and you will come home to a water-filled and ice covered home.
Do call the insurance company as soon as you find out of any incident.
Don’t use the word “flood” as floods are not covered and defined differently from the water coming from burst pipes.