Common risks in the program

Common Risks in the Program

Claims that result from weather related damage such as from a large windstorm, or other natural disasters can be beyond our control. However, many losses in our Commercial Insurance Program are caused by human behaviour and therefore are preventable by reducing human error through education and awareness.

Leading causes of loss:

Fire Damage Claims: Smoking related losses were the leading cause of fires in 2022.
Water damage Claims: Leakage of water from supply lines, frozen pipes, and overflowing fixtures are major factors in the number and size of water claims. In 2022, the number of claims on ruptured pipes doubled, but the cost of repairing those losses tripled.
Weather related Claims: It is very difficult to prevent damage from a storm. However, knowing that weather losses will happen, allows co-ops the opportunity to prepare and take steps to help reduce the amount of damage that can occur from flooding or wind storms.

Losses that Impacted our Commercial Insurance Program

Insurance claims in our Commercial Insurance Program – What are they telling us?

The ability to obtain many resources and skilled trades has become more difficult and costly. The time it takes to complete repairs on a loss today has nearly doubled since 2019.
The additional cost for repairs, the delays in getting the needed materials, the reduced amount of available skilled labour – are all reasons to have and adapt a risk management plan for your coop.

A good risk management plan can:

prevent losses,
reduce the impacts of a loss that can’t be prevented, and
prepare your coop for difficult situations after the loss has happened.

By concentrating your focus and efforts to continued education and improved management, you can work towards a safer environment for your Co-op.

Preventable Risks

Here are some other risks that can be found around your property that you should be aware of so that you can take the necessary steps to help protect your community.

Outside

WALKWAYS

Uneven walkways (with broken pavement or potholes) can cause someone to trip, slip, fall or hurt themselves. During colder seasons, this can be worse because walkways can be covered by ice, snow, or even fallen leaves. A simple visual inspection of your walkways should be done and any areas of concern brought to the attention of management.
Is your walkway cracked or broken? If yes, tell your co-op. You, your neighbour or a visitor could be injured from a trip and fall.

RAIN GUTTERS

During the winter season, when ice and heavy snow accumulate on the roof, there may be damage to the gutter system, which can easily be damaged or even ripped off completely from excessive weight. When gutters fail to direct water away from the building, the foundation could crack from water freezing and expanding against the foundation wall. A cracked foundation can cause water damage to the inside of your home. To prevent such problems, take a look and see that gutters are still fastened securely to the building and that the downspouts direct the water away from the foundation— but also away from walkways, or other commonly travelled areas in order to prevent slips and falls from ice buildup.

DECKS / BALCONIES

Exposure to the elements can lead to deck or balcony material that becomes soft, rotten, discoloured, or broken in places. If unrepaired, this could make the deck or balcony fall to the ground putting anyone on the deck or balcony, or anyone underneath, in harm’s way and could lead to severe injury. If the inspection uncovers issues with the deck or balcony, it’s critical to have the required repairs made immediately. It is also very important to check deck or balcony railings on a regular basis. Because their purpose is to keep someone from falling over the edge, they must be installed properly and be structurally sound. If you see that the railing moves easily when pushed, pulled, or even leaned on with minimal force, then it is time to have a qualified person inspect it and make the needed repairs.

STAIRS

Stairwells should be free of obstructions, well lit, and have a handrail. Canada’s national building code requires a handrail on any stairs that have three or more steps. If you have a set of stairs that has three steps or more and there is no handrail, or if there is a handrail and it is in poor condition (moves easily), you should let the co-op management know.

Inside

ELECTRICAL

Every year homes are damaged or destroyed by electrical fires, many of which are caused by improper use of temporary heaters and extension cords.
Are any of your electrical outlets or light switches missing a cover? Missing covers can cause fires or electrical shock. Make sure all outlets and light switches have covers.

TEMPORARY HEATER

A temporary heater is defined as a heater that is movable and can be plugged into a standard wall outlet. It is not designed or built to be used as a full-time heat source. Temporary heaters should never be left unattended as they can easily fail, causing serious smoke and/or fire damage to homes. The use of temporary heaters is strongly discouraged as the central heating system should be the only source of heat for the home. If you find that the central heat is not keeping your home adequately warm, you should talk to the co-op management.

EXTENSION CORDS

Extension cords are intended for temporary use only and could be a potential shock or fire risk. If you are using an extension cord because an outlet is not close enough to plug in the device you are using, talk to your co-op management about having an approved outlet installed.
Do you use extension cords?
Extension cords can cause fires and should only be used temporarily.
Check the extension cords that you use, make sure they aren’t frayed or pinched and are in good shape.
Never use extension cords for permanent appliances like your fridge or stove

WASHERS AND DRYERS WASHERS

Washing machine water hoses have a life expectancy of only five years. Failed water hoses can lead to damages to your home. A regular visual inspection of the water hose can prevent these losses.
There are different types of hoses—with the lowest grade being the basic rubber hose, which also has the shortest life expectancy. Braided metal hoses should be installed, as they are less likely to burst. If you see signs of wear or deformation, you should replace the hose (if you own the washer) or contact co-op management.
Water detection devices are a great way to have additional protection from water leaks. The device is placed at floor level near a water source. If there is a leak, the water will come in contact with the detector and sound an alarm to let you know there is a problem. This will give you time to shut the water valve off and stop the flow of water. This type of detector can be purchased at most hardware stores as well as online

DRYERS

Over time, lint will start to accumulate on the wall of the exhaust vent, reducing the air flow and making the dryer work harder and potentially overheat and cause a fire. The dryer filter should be cleared of lint after each load.
The dryer vent at the back of the dryer should also be visually inspected annually to ensure there is no buildup of lint. Keeping the filters and vents clean allows the clothes to dry faster, lowers the cost of operating the dryer, increases the life expectancy of the appliance and, most importantly, reduces the risk of fire

FIRE SAFETY

Are your smoke and carbon monoxide detectors working? Test them at least once every year.
Is your smoke or carbon monoxide detector more than 10 years old? If yes, it should be replaced. There should be a sticker with a date on the unit. If there is no sticker, the smoke or carbon monoxide detector should be replaced.
Do you use candles or incense? If yes, keep them in places where they will not fall and where they cannot set other items on fire.
Do you use a BBQ? If your building has wood, vinyl, plastic, or stucco siding, you need to keep your BBQ at least 90 cm (3 ft) away from the building.