If you can’t use your property after damage in an insured loss, loss of use coverage offers you valuable protection.

When you suddenly lose the use of your property after a disaster, it can be just that much more disorienting. Fortunately, included in your home insurance policy, there is Loss of Use coverage to help get you by. It offers valuable protection when you lose the use of your property after damage and an insured loss. It’s a common component of most home, condo, and tenant insurance policies.

Essentially, Loss of Use covers you when you find yourself suddenly displaced and cannot live in your home due to an insured incident. It’s coverage that reimburses you for additional expenses when you can’t use your property. For instance, if you need to live elsewhere temporarily during home repairs or rebuild after a house fire.

Components of Loss of Use coverage

You may hear Loss of Use referred to as “Additional Living Expenses” (ALE). It’s the most common use of the coverage but is really only one facet of Loss of Use coverage. There are two other elements to the typical Loss of Use coverage:

Additional Living Expenses (ALE)

If your home is unfit to live in after a catastrophe, ALE covers the additional necessary living expenses you have to pay to relocate temporarily.

Defining ALE

Generally speaking, there are two primary circumstances where Additional Living Expenses coverage applies:

• Direct damage. As mentioned, the most common implementation of ALE is to cover living expenses in the event that your home is suddenly unfit to live in due to insurable damage. For the coverage to apply, the damage results from a peril that your policy covers. For example, fire is a peril included in every home insurance policy. In the event of fire damage, your policy will cover repairs, rebuilding, and your living expenses while you cannot live at home. Pests, on the other hand, are a peril not included in most policies. If termites damage your home and you have to leave during fumigation, it’s not likely that your policy will cover – the termite damage or any ALE.
• Civil authority order. It’s possible to have to vacate your home under a civil authority order. ALE coverage applies so long as the cause for evacuation is insurable under your policy. For instance, ALE will cover your expenses if you have to evacuate due to wildfire if your insurance covers fire. Even if the fire doesn’t touch your property, you can claim ALE. But, if there is a civil authority order to vacate your premises due to flood and you don’t have flood coverage, you cannot make a claim for any ALE. To cover costs under ALE, the evacuation order must be an order, not an alert or advisory, or if you choose to leave your home voluntarily.

The common extra expenses Loss of Use protection can help cover:

• A place to live – ALE coverage will pay for a hotel or to rent a furnished apartment. If you’re a renter, ALE will cover only those costs that exceed your normal rent payment.
• Storage – If you need to store items while your home is repaired or rebuilt, ALE can cover the storage costs.
• Extra utility charges –  There are typically extra charges when you move, suspend, or cancel utility services. ALE can cover some of the extra costs.
• Food – Food costs often increase when you can’t be at home.  Staying in a hotel without a kitchen and eating in restaurants adds up!
• Additional Transportation expenses – A temporary living situation may require additional commuting and travel, making getting to work and school much more expensive. ALE can help cover these increased expenses.
• Pet – Your temporary living circumstances may not allow for your pets. ALE will cover keeping your furry family members in a kennel.

IMPORTANT NOTE: If your situation requires you to make a claim, be sure to keep all of your receipts!

Fair Rental Value

Fair Rental Value is a component of Loss of Use coverage. If you rent all or a portion of your home, you will likely lose rental income if property damage makes the home unliveable – under repair or rebuild. There are policies that will cover lost rental income as part of ALE coverage.

Note: While Fair Rental Value offers coverage for lost rental income in the event of an insured incident, it is not standard coverage on home policies.

For landlords, you have the option to purchase insurance that has rental income coverage included.

Among the most common reasons small to mid-size industrial properties make insurance claims? Losses from hot work.

“Hot work” refers to any work with ignition sources near flammable materials. Types of hot work involve welding, soldering, and cutting and often produce sparks. And the result of a “quick job” in an area not designed for welding or cutting is often fire.

One of the leading causes of fire in Canada for small to mid-size industrial and commercial operations and one of the top three causes of significant property losses? Hot work. A hot work management program, however, can help reduce the risk of fire hazards by welding, soldering, and other hot work.

Mitigate losses – a hot work management plan

When you take the time to design a hot work management plan, you help to reduce significantly or even eliminate hot work hazards and risks. Plans include policy development, procedures, and assigning responsibilities for all facets of hot work, including accountability. A management plan includes:

1. 1. Establish policies:
      • WHERE hot work can occur
      • WHEN hot work can’t occur
      • WHO performs, authorizes, and monitors hot work
   2. Identify procedures:
      • Assessments to perform before permitting/performing hot work
      • Preparation procedures for any hot work area
      • If you can’t avoid hot work, detail how to do it. Particularly in areas that might be hazardous
      • List required tools for hot work
      • Hot work permit – How to get one, when to get one, and who can administer it
   3. Train all relevant personnel – management and employees
      • Supervisors, employees, maintenance workers, individuals who work fire watch, fire crews, and contractors all have different roles, trained accordingly
   4. Communicating the management plan
      • Post procedures in a highly visible place
      • Post policies in a highly visible place
      • Post signage in areas where you do NOT permit hot work

Obtain a hot work permit

You can significantly reduce the hazards of hot work with a permit. A two-part tag system, the permit requires whoever performs hot work to complete a safety checklist before they begin any hot work in areas not designated for hot work. Attach one portion of the two-part tag near the work area until the fire watch is complete. Management keeps the other portion of the permit for records, audited by management.

The permit system ensures the individual performing the hot work follows the appropriate safety protocols. It requires they sign off on a checklist before working and after the fire watch is complete. A hot work permit is available for purchase from most retailers of safety supplies.

Best practices

To help prevent damage and losses from hot work, ensure that, in addition to your standard hot work procedures, ask the following questions before work begins:

• Is all equipment in good operating order?
• Are all appropriate personal protective devices readily available at the site?
• Have you trained each worker properly on how to use, clean, and store protective equipment properly?
• Has someone thoroughly inspected the work area? Are there combustible materials in nearby structures (walls, ceilings, partitions)?
• Has someone moved all flammable and combustible materials away from the work area?
• Can you move combustibles? If not, can you cover them with fire-resistant blankets or shields?
• Have you protected gas lines from hot materials, falling sparks, and other objects?
• Have combustible materials such as sawdust been swept clean around the work zone? If the floors are combustible, keep them wet or covered with fire-resistant blankets or damp sand.
• Are the appropriate fire extinguishers (e.g., ABC fire extinguishers) available and easily accessible?
• Find out more hot work best practices HERE.

Establish a fire watch schedule

A vital component of any hot work management plan is a fire watch. Once the hot work – welding, soldering, grinding, or any other activity that produces heat and sparks – is complete, you MUST conduct a fire watch.

Ensure that no hidden spark or fire has been left that might smoulder or ignite at some point after the hot work is complete. Potentially catastrophic consequences could occur if you miss or skip a fire inspection after the work is done. You might have to pay a properly trained employee to stay longer to inspect and watch the area. But, it’s a worthwhile expense, as many victims of hot work damages and losses will attest.

If you’re unable to afford the extra eyes for an after-hours fire watch, try to limit any hot work to earlier in the day. So, if there are sparks smouldering, they’re caught during the business day. It’s recommended that you keep an eye on the area for up to four hours after the work is complete.

Be sure that your hot work management plan includes ALL hot work activities no matter who performs them, your staff or third-party contractors. Look at your safety policies and be sure that they include hot work. It doesn’t need to be complicated! Simply a page or two will do, outlining specific safety policies and procedures required to conduct hot work.

Questions about a hot work area and your commercial insurance? Talk to us!

Spring is on the way! And that means a rush on kids getting a new BC driver’s license. Here’s what you need to know:

Spring will be here before we know it and, inevitably, that will mean a whole lot of new, fresh-faced youngsters eager to get behind the wheel with a new BC driver’s license – Learners and New permits – throughout the region.

The pandemic has had an impact on the scheduling of BC drivers license exams and road tests. In answer, ICBC has implemented an efficient online booking system so that our kids and other new drivers can easily book their testing sessions. Be sure to get out ahead, mind you, as the appointments book fast. As with everything these days, anticipate and plan for potential restrictions, which may include masks and physical distancing. Plan ahead to ensure the best possible experience for the excited new driver!

In preparation for getting out on the road with a BC driver’s license, we’ve outlined all the important things to know, from preparation to practice to planning for a test. Read on and fasten your seatbelt… it’s going to be an exciting ride!

For BC DRIVER’S LICENSE INQUIRIES, CALL: 1-800-950-1498

They’re ready to jump in and hit the road with their new BC driver’s license. And, of course, you want them to do so. But with confidence and safety. This is an exciting – and scary! – time for young drivers and parents alike. All that freedom and independence; no more relying on rides from mom and dad. It’s a wonderful time in a young person’s life, but it also comes with tremendous responsibility.

What the eager young driver-to-be may not anticipate is how much preparation will be required before they get behind the wheel on their own with a brand new BC drivers license. There are tests, both theory and on the road, but there’s also the expense of a first car insurance policy.

Let’s break things down with a brief outline to help you know what to expect. We’ll also give you let you know where you can find all the information you and the new driver in your life will need:

Pass the knowledge test before driving – the BC Learner’s Permit

To become a legal driver in our province, a knowledge test is the first mandatory step. The first stage in the process to receive a valid BC driver’s license is the Learner’s permit.

With a Learner’s permit, the new driver is able to get real-world practice behind the wheel WITH a licensed adult driver. This is their opportunity to get safe and guided practice. LOTS OF PRACTICE!

To receive the Learners, or “L”, in this, the first step, a first-time driver must achieve a score of, at minimum, 40 out of 50 questions correct on a multiple-choice knowledge test. In order to pass this test they’ll prove that they understand not only the rules of the road, but that they have an awareness about what it means to drive safely. To pass this phase the aspiring driver will:

• Pay a fee to take the Knowledge test.
• Take the test from a computer terminal at a registered testing office.
• Answer questions that include road sign knowledge, driving laws and safe driving practices.
• Once completed successfully, the new driver will receive a BC Learner’s driving permit and an “L” magnet to display clearly on the back of the vehicle. This magnet indicates the driver’s status to others on the road, including law enforcement and other authorities.
• Understand that this Learner’s Permit IS NOT a full BC driver’s license. They are restricted to driving with a licensed adult, not on their own. It is required to progress to the further required exams and advanced, independent, licensing.
• Be authorized to practice driving on the road legally with a fully licensed family member or friend or recognized driving school.

Learner’s (Knowledge) tests are available by appointment only. Book an appointment using ICBC’s online scheduling service.

Graduated Licensing Program

No matter the aspiring driver’s age, every first-time driver in British Columbia must achieve their full BC driver’s license through the Graduated Licensing Program (GLP).

The GLP process provides new drivers with all the information, skills, and perspectives to help make them better, safer drivers who are more competent and confident on the road. Through the GLP, inexperienced drivers gradually become more comfortable as they prepare to become independent drivers. This is achieved first with experienced and trusted supervision and then, eventually, on their own.

To help new drivers make their way through the GLP successfully and receive their BC Drivers License with confidence, there are three tests: a multiple-choice, followed by two on the road. When the new driver proves a level of mastery over the required knowledge and that they can drive safely, the process is typically completed in three years. It’s the years driving as a Learner and New driver that allow ample preparation and practice to develop and reinforce the necessary knowledge, skills, comfort, and confidence they need to drive safely with the rest of us.

The required phases to achieve a full BC driver’s licence – the GLP ‘Learner’ and ‘Novice’ permits:

Phase 1: Learner’s (L) Permit

At any time on or after their 16th birthday, a new driver can receive their L.

The L driving permit – steps:

• If the driver is younger than 19, a parent or legal guardian must sign a consent
• Book the knowledge test appointment and take the test at an ICBC driver licensing office
• Pass the vision screening test

Knowledge tests are available by appointment only. Book an appointment using ICBC’s online scheduling service.

Learn more about the BC Learner’s licence

Phase 2: Novice (N) Driver Permit

The driver must practice with their N permit for a minimum of a year under the supervision of an experienced, licensed driver. Upon completion of a year of practice, the Learner can take their first road test.

Getting the N permit:

• Plan ahead and BOOK the CLASS 7 road test
• Plan that the road test session — including time to review driving performance — will last approximately 45 minutes. The assigned examiner sits beside the driver and decides the route that will test your driving skills best.

Learn more about the Novice licence

Phase 3: Full Driver’s License

The final step! When you complete phase 3, you will be allowed complete independence on the road. The end of mandatory supervision as you drive. When you achieve this phase of the process, you can remove the magnet from your vehicle.

Phase 3 can be completed only after at least two years of safe driving as an N. The requirements for a full driver’s license include:

• You have driven suspension-free for the previous year as an L driver.
• The Class 5 road test – booked in advance.
• Successful completion of the advanced road test. As the driver is more experienced, there will be more difficult and challenging driving environments presented during the road test than was completed for the N. The test along with examination feedback will take approximately 45 minutes.

Learn more about getting the full BC driver’s licence

ALL DRIVERS LICENCING INQUIRIES: 1-800-950-1498

Protecting the new, young driver – auto insurance coverage

When it comes to insuring young drivers, different factors will determine what you will pay for car insurance. Your insurance agent will identify the insurance rate using the following factors:

• For the purposes of auto insurance, a young driver is defined by anyone under the age of 25.
• Multiple risk factors influence the rates for auto insurance, including the increased likelihood of an accident with young drivers.
• In Canada, young drivers make up about 10 per cent of drivers. The fact is, young drivers are more at risk for auto accidents. They account for about 25 per cent of all accidents resulting in serious injury or death.
• Drivers between the ages of 16 and 24 are simply assumed to be at higher risk.

If you have questions about auto insurance for young or new drivers or any other insurance information, CONTACT US!

Don’t tempt fate next summer during another crazy wildfire season. FireSmart your home this fall!

We may have survived another wildfire season, but we shouldn’t stop thinking about it just because winter is on the way. In fact, fall and winter are among the best and easiest times to get out ahead and prepare. There are a variety of measures you can take right now to ensure that you FireSmart your home well in advance of a wildfire crisis next year or beyond.

How easily a wildfire can spread

To grow and expand, from the surrounding trees to your home, wildfires need fuel. This includes the vegetation around your home – trees, shrubs, and other surrounding vegetation. It also includes the home itself, if it’s not protected. Some trees pose a greater danger than others. Coniferous trees, for example, such as fir and juniper, are highly flammable. If you have deciduous, or leafy, trees around your home they are far less flammable and don’t pose the same degree of danger.

Did you know? The wind, or even the energy of the fire, can cast embers and other burning debris up to two kilometres ahead of the wildfire’s path. The airborne embers easily fall and ignite the ground and any structures they land upon – including your home.

Just the embers can cause significant damage. And once a building starts to burn, it too can expel embers further onto the property and into your surrounding community.

How to FireSmart your home

Over the past thirty years or so, Natural Resources Canada (NRC) estimates that forest and wildfires have destroyed approximately 2.5 million hectares (the equivalent to 6 million football fields) in Canada each year. The cost in fire suppression resources alone runs about $500 million to $1 billion per year.

That’s why it’s so very important to do what you can to protect your home and property. And when you FireSmart your home, you can increase your property’s fire resistance significantly, helping to reduce the likelihood of wildfire damage and loss.

Given the increasing number of destructive wildfires we can expect throughout BC and our region, there is a need for education. To help inform people about what they can do, FireSmart Canada offers a FREE online course. FireSmart 101 is only one hour of your time and provides a good introduction to the program. It shows us how homeowners and communities can take steps to protect our homes.

Take the FREE FireSmart 101 course!

In addition to the course, read on for steps you can take this fall and winter to better prepare and protect your property well in advance of what could very well be another record-breaking season for wildfires.

FireSmart your yard – 1.5 – 10 metres from your home

To FireSmart your yard, you begin to explore better choices of grass, plants, shrubs, and other landscaping materials such as mulch. You want to choose those plants and landscape materials that are fire-resistant.

When you have a FireSmart yard, it contains mainly low-profile, fire-resistant plants and shrubs with adequate space between them. Don’t keep wood debris close by and understand that mulch can provide an inviting starting place for a fire.

Try to maintain a ‘non-combustible zone’ around your house that is about 1.5-metres wide of rock, stone, or soil with few or, ideally, no plants or debris.

What are your surroundings?
Examine the vegetation that surrounds your home. Is it fire-resistant or flammable?

What makes a flammable plant?

• aromatic needles or leaves
• oils or resin
• loose, papery or flaky bark
• fine, dry, dead material accumulation

What makes a plant fire-resistant?

• supple, moist leaves
• sap that is water-like and has minimal odour
• doesn’t accumulate a lot of dead or dry vegetation
• minimal sap or resin material

Take a look at your grass? When you keep your lawn short and frequently mowed, it is fire-resistant – shorter than 10 centimetres – and is far less likely to burn with any significant intensity. Dry grass is more flammable, so during water season, keep it well watered. Where ever you can in your yard, reduce the need for irrigation – keep drought-resistant plants.

Do you have a lot of pine needles or bark mulch? Try to keep these materials no closer than 10 metres to your home. They’re very combustible. Rather, choose crushed rock or gravel mulch to reduce the risk of wildfire dramatically.

Also, keep your firewood well away from your home – it’s a serious fire hazard. Keep it tidy and free of bark bits and debris as much as possible.

Examine your trees and shrubs
We all love a treed yard – we want to be surrounded by nature. And a yard with trees can be a FireSmart yard! What kind of trees do you have?  Enjoy a green, lush and green yard that is also fire resistant. Here’s how:
Plant leafy (deciduous) trees, such as:

• maple
• poplar
• aspen
• birch
• cottonwood
• alder
• cherry
• ash

Our area is full of coniferous trees and so are many of our yards. But as much as possible, try to keep them no closer than 10 metres to your home. These trees include:

• pine
• fir
• spruce
• cedar

When coniferous trees ignite as close as 10 metres to your house, the flames but also simply the intensity of the heat can ignite your home.
Be sure that any coniferous trees are well-spaced – at least three metres apart. If a fire moves through the tops of trees, it can easily advance into neighbouring trees. As it moves, it intensifies.

Throughout the fall, clean up any debris thoroughly around your home – highly flammable materials such as branches, dry leaves, and twigs. Remove smaller coniferous trees as they’re highly combustible. In fact, they can offer a ‘ladder’ and allow a fire to move up to the tops of trees.

Prune your trees. Fire moves from the ground and climbs quickly. So also keep debris and dried material cleared from below them. It’s recommended that you prune coniferous trees while they’re dormant, in late winter. Remove any dead branches at the trunk of the tree.

Find out MORE about how you can prepare and protect your home BEFORE wildfire season. Learn how your home and your community can be FireSmart!