Islanders worry about oil spill coverage after hearing of one family's massive cleanup bill
P.E.I. homeowners have 'every right to know' what's in their policies, says insurance bureau's vice-president
Islanders who heat their homes with oil are double checking their insurance policies after learning about the massive bill dealt to one family when their tank leaked.
After 1,100 litres of oil spilled onto their property, the Waite family was hit with a $345,000 cleanup bill and a lien on their home. They assumed they had insurance coverage in the event of an oil spill, but were shocked to discover they didn't.
Neevin Clow said the Waites' story left him worried about what kind of coverage he had.
"I was concerned that all of a sudden we'd put so much money into a house, and it'd be gone," he said.
Clow said he called his insurer, who told him "not to worry."
"They checked my policy and everything was fully covered."
Clow isn't alone in his concern. One insurance broker said they've been overwhlemed with calls since CBC News told the Waite family's story last week.
Even staff at P.E.I.'s Environment Department, which deals with the aftermath of oil spills, have been double checking "the nuances of their insurance policies if they heat with oil," a spokesperson said.
Check the 'what ifs'
Seeking clarification is the right move, since many insurers either don't provide coverage for oil spill cleanup or offer it as an add-on to standard policies, according to the Insurance Bureau of Canada.
"That's a great reason to check for all of those 'what ifs' — what your coverage is within your policy, what would be the result of a loss happening, whether it's a fire, an oil spill, a hurricane," said Amanda Dean, the bureau's vice-president in the Atlantic region.
"Home insurance is one of those things we all need to purchase, and asking a lot of questions of your insurance representative is a wonderful thing to do, especially upon renewal."
Dean said her advice is to be "as active as you can possibly be" with your personal insurance policy, especially when it comes to your home.
"You're paying good money for those possibilities and have every right to know what's included, and especially what's not included."
While it's unclear why many insurers don't provide oil spill coverage, Dean suspects it might have to do with low demand.
Outside of the Atlantic region, using oil to heat homes isn't very common. As more Canadians switch to electric heat, it's becoming even more rare.
"There could be a whole host of considerations because claims of the few are paid by the premiums of the many," Dean said.
"It's that pool insurers need to consider to ensure they have enough money in order to pay the claims that are going to happen the next day, the next week, the next month and so on."
When it comes to oil spills like the one the Waite family experienced, Dean said the situation doesn't arise very often.
In terms of maintenance, she said, people might want to take a closer look at their tanks.
For Clow, being prepared isn't only for his own benefit.
"If we have an oil spill here, it not only affects us, it could affect our neighbours because the houses are so close together, " he said. "Once it gets into the soil, it could go anywhere."
Clow said he's "a person that likes to keep everything covered and make sure I've done everything I'm supposed to do to keep things in proper order."
"Make sure you're well-insured and look after your house, look after your maintenance."
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With files from Steve Bruce