While some outages only last a few hours, others can last for days or weeks. Most recently, both Ontario and Quebec experienced severe power outages.
Over Christmas 2022, Ontario was hit with a ‘once-in-a-decade’ storm that cut the power to homes for several days. While residents of Montreal and surrounding areas experienced an early spring ice storm. High winds swept across the region, causing nearly 10,000 power outages. More than 1.3 million customers were impacted by this storm.
Wildfires can also cause power outages, which Quebec and other parts of the country have recently experienced. About a quarter of a million customers lost power as a result of this natural disaster, with most affected living in Montreal.
And no one can forget the power outage that affected 50 million people across parts of Canada and the northeastern US in the summer of 2003. Where many were left without power for weeks.
When power outages occur, food can spoil, and electronics can get damaged. Leaving you to relocate temporarily until your home is safe to live in again. The question is, does home insurance cover all this, or will you be left with a big bill to pay on your own?
What Can A Power Outage Cost You?
Depending on how long the power outage in your area lasts and the type of contents affected in your home. You could be looking at hundreds or even thousands of dollars in losses.
For instance, food stored in your refrigerator or freezer can easily spoil if you’re without power for a couple of days. Generally speaking, food can last between 24 to 48 hours after these appliances are shut off. As the interior can remain cold for a while.
But past this time period, the risk of food spoilage skyrockets. And with the cost of food soaring over recent months, the financial loss can be even more significant these days.
Food Prices Continue to Soar
According to Canada’s Food Price Report 2023. Canadian households can expect a 5% to 7% price increase in food this year. An average family of four will spend up to $16,288 a year on groceries. Marking an increase of up to $1,065 from 2022.
Even if you have one week’s worth of food stored that spoils due to a power outage, that will cost you over $313. And if you have a month’s worth of food in the freezer, including more expensive items like meat, you could be looking at well over $1,000 lost. For families on tight budgets who are already struggling with mounting debt, this could spell financial ruin.
The Canadian government is making some effort to help by recently introducing the grocery rebate as part of its 2023 federal budget. Eligible Canadians can get anywhere from $225 to $467 to put towards the cost of groceries. But given the continuously-increasing price of food, this rebate will only take you so far.
The losses can be exponentially higher when you account for other damages, such as electronics and appliances. With the cost to replace your food and expensive electronic devices. It would help immensely if your insurance company would cover some of these losses to minimize the impact on your finances.
Can You File An Insurance Claim For A Power Outage?
Your home and many of its components rely on a steady stream of power to maintain operation. But any interruptions in this power can quickly cause damage to your home and belongings. Will your insurance company provide compensation as a result of a power outage?
Food Loss Coverage
If you have a refrigerator or freezer full of perishable food items, a power outage can cause it all to spoil. In this event, you’ll want to see about recouping that loss through your insurance company.
Whether or not food loss is covered in your policy will depend on the exact cause of the outage and your insurance provider. The majority of policies include some coverage for food spoilage due to power outage. But only if it was caused by a specific covered peril. It is more likely that you may be covered if the power outage was caused by a natural disaster, and not necessarily an electrical grid failure.
According to the Insurance Bureau of Canada (IBC), the contents of your freezer are covered up to a certain amount under your property insurance policy, which should be detailed in your contract.
Relocation Due To No Heating
If the power goes out in the middle of winter, your home may be unsafe to stay in for an extended period of time. Hypothermia can set in when someone is exposed to frigid temperatures, which is dangerous and potentially lethal. In fact, a recent study showed that almost 4.5% of deaths in Canada were due to cold temperatures.
If the heat goes out in your home due to power loss and you’re unable to heat your home by other means — such as a gas fireplace — you may want to consider relocating temporarily to ensure that you and your family are warm and safe. But unless a friend or family member takes you in at no cost, you’ll have to pay for temporary accommodations until the power in your area is restored.
For instance, let’s say the power outage lasts a week where you live. If you’ve had to relocate to a hotel for that period of time, you’ll be spending hundreds of dollars.
Assuming a nightly charge of $200, a week’s stay at a nearby hotel would cost you about $1,400. That’s a hefty sum of money, and as such, you may want to see if your insurance provider will reimburse you for this cost.
Unfortunately, alternative housing arrangements are not usually covered by your homeowner’s insurance policy, even if you’re without heat. Unless there’s damage done from a natural disaster and your home suffered heat loss as a result, you’ll likely have little luck obtaining coverage for costs associated with temporary relocation. So, that hotel bill will be yours to cover out-of-pocket.
Damage to Property
Any number of issues can pop up when the power goes out at home. For instance, if an outage occurs in the middle of winter, there’s a possibility that the pipes in your home can freeze after being exposed to plummeting temperatures over a long period of time. When this happens, your pipes are at risk of bursting, which can lead to major water damage to your home.
A power outage can also eventually lead to a power surge when the power finally comes back on, or if the voltage fluctuates. Any electronics or appliances that are plugged into the electrical system are at risk of damage when this happens.
Homeowner’s insurance policies often include personal property coverage, which covers damage done to items in your home as a result of a covered peril. However, standard policies don’t typically cover damage to electronics from a power surge, though you may have the option to add this coverage to your base policy.
Further, any coverage available will vary depending on your specific policy, so it’s important to carefully review it or speak with your insurance agent to verify what coverage your policy provides.
Can You File A Claim With Hydro Quebec For Power Outages?
Utility companies don’t typically cover damages to your home as a result of a power outage unless the utility company is deemed liable.
More specifically, Hydro Quebec does not offer compensation for the loss of food resulting from a power outage. In terms of damage done to electronics or appliances, the utility company does not provide reimbursement unless it is liable.
If Hydro Quebec is found responsible, compensation will be based on the value of the item on the day the damage occurred. The value will be determined by the replacement cost, less depreciation. You may want to see what your homeowner’s insurance policy offers and compare the two to see which one offers more.
To file a claim with Hydro Quebec, you can fill out an online form with all the required information. You can also write to Hydro Quebec at the following address:
Hydro Quebec Claims
C.P. 6004
Succursale Centre-Ville
Montreal, QC
H3C 3B3
Can You File A Claim With Hydro One For Power Outages?
Hydro One in Ontario has a damage claim team that investigates claims. They focus on customers who have suffered a loss due to damages incurred during a power outage that is within the utility company’s control. However, there are very few instances in which Hydro One will provide compensation.
For instance, the company will not compensate for damage done to your home or your belongings as a result of power fluctuations. You’ll also be out of luck if damage is caused by service interruptions due to an accident, emergency, unexpected equipment failure, or planned outages.
Hydro One will make an effort to provide ample notification in advance of planned outage events so you can take the necessary steps to protect your home and belongings. But even in cases where the company cannot provide this notification, it will still not be held liable for losses resulting from these outages.
Despite this, you might still feel that you have grounds to file a claim. In this case, you can start your claim online, which is the fastest and easiest way to file.
You can also email your claim to claims@hydroone.com with the subject: Hydro One Damage Claims Division. Or, you can send your claim form by mail to the following address:
Hydro One Claims Division
Hydro One Networks Inc.
483 Bay St., 6th Floor, S. Tower
Toronto, ON
M5G 2P5
Can You File A Claim With BC Hydro For Power Outages?
BC Hydro does not guarantee a constant supply of power to your home. As such, the company is not liable for damage caused by an interruption of electricity. For instance, damage done to your electronics or electrical appliances as a result of power irregularities are not the responsibility of BC Hydro. Further, no compensation will be provided if damage was done due to service interruptions as a result of emergencies, accidents, unexpected equipment failure, or planned power outages.
In these cases, you’re encouraged to review your insurance policy to see if your plan covers such losses.
That said, you still have the right to file a claim with BC Hydro if you believe that the damage incurred was the fault of the utility company. In this case, you can make a claim online and provide all the required information.
What Do You Need To File An Insurance Claim For A Power Outage?
When you file a claim with your insurance provider to recoup losses following a power outage. You’ll need to provide several pieces of information to help the claims department accurately determine your eligibility and compensation amount, if applicable:
- Your name and contact information
- Details of the incident that resulted in damage to your home or belongings
- Date of the incident or loss
- Details of the damaged items
- Estimated loss amount
- Supporting documents (ie. photos of the damage, invoices, etc.)
If you decide to file a claim, make sure you reach out to your insurance company right away. Most insurers have time limits that a claim can be filed following an incident. This can range from 90 days to 12 months following the date of the event. Read over your insurance policy’s details to find out what time constraints you have to work with.
Are There Any Government Programs To Help With Energy Costs?
There are several programs offered by provincial governments to help with the rising cost of energy. In Ontario, for instance, the following programs are available:
Ontario Energy Board (OEB) Emergency Financial Assistance. Low-income Canadians may be eligible for up to $500 for electricity bills in an emergency situation and $500 for natural gas bills. In order to qualify, you must already be behind on your bills or in arrears and are at risk of having your utilities disconnected.
Ontario Trillium Benefit (OTB). This is a monthly payment from the provincial government made to low-to-moderate income households to cover energy costs and various taxes.
Ontario Electricity Support Program (OESP). This program supports low-income households with electricity bills. Bill credits range from $35 to $75 per month.
BC Hydro bill credit. All eligible customers in BC can receive a one-time $100 cost-of-living credit. Which is the equivalent of roughly one month of electricity for a detached home, or over two months of electricity for an apartment.
Chauffez vert program. The Quebec government, Energir, and Hydro-Quebec have partnered to offer Quebec residents the Chauffez vert program. Eligible residents can receive financial help to cover the cost of buying and installing a dual-energy heating system. This can significantly reduce energy consumption and subsequently lower utility bill costs.
Final Thoughts
A power outage is certainly a nuisance but can be costly too. Depending on how long the power is out and the circumstances surrounding its restoration. You could suffer the loss of refrigerated or frozen food, or damage to expensive electronics.
While most insurance policies may not cover these losses, there may be some instances in which they do. Be sure to reach out to your insurance provider to find out what type of compensation you may be entitled to
