Few things can ruin the peace you found during your vacation more easily than coming home to find your basement flooded. I know this from experience: I recently returned from a trip to find that a pipe had burst and water had been pouring relentlessly into my basement for weeks.
I live in Toronto, and like most big cities in Canada, our water usage is metered. In a metered water system, even the smallest leak can quickly send your water bill soaring. Experts point out that so-called “invisible leaks” can easily leak so much water that a burst pipe can flood your home from top to bottom after just a few hours. Your local government may eventually warn you, but by that time, many of those in this predicament are already in serious financial trouble with the water company.
In my case, I stand to lose probably $6,000 unless I can get the water company to take pity on me and adjust my bill, which is no easy task. So far, in accordance with city guidelines, the documentation I've sent includes verification of my age and income, a letter from a licensed plumber, proof that the water meter is not defective and that the leak is not under my control, and even an airline ticket receipt to prove I was out of town when the leak occurred.
Hopefully the next step won't be to surrender my firstborn, but that's down to luck.
Advising clients on water leakage issues
Issues with leaks are of particular concern to real estate agents who have clients whose homes are vacant due to divorce, death, job relocation, etc. In these situations, it's important to make sure the plumbing system is in good repair, regularly inspected, or shut off. While the latter isn't ideal for showings or open houses, it's better than charging clients high water bills.
“Tell them to turn off the water and put a 'do not use' sign on the toilet,” advises Richard Fleming, broker and owner of Re/Max Mountain View in Calgary. “Homeowners often say that never occurred to them.”
Or you can leave the water on when you hold your open house and turn it off again when you leave.
Fleming said homeowners can monitor their usage through their water bill or their account on the utility's website to make sure they don't accidentally have a leak or a toilet that keeps running, which increases water usage.
In his observation, Calgary's highly publicized water main burst in June this year had no noticeable impact on real estate agents in the city and their clients beyond some water restrictions that he deemed a “minor inconvenience.”
But he recalls “the worst water leak story I've ever seen,” in which the buyer didn't get their own home inspection and, contrary to his advice, used a year-old inspection provided by the seller. A few months after his client moved in, heavy rains caused the basement to flood. Neighbors told them this was common and, in fact, that's why the previous owners had sold the house.
“My client sued and won for $40,000, the appropriate cost of repairs, but it took five years,” Fleming says. “Never use an existing home inspection, and don't list properties with clients who refuse to disclose these issues to potential buyers.”
Advice from the Canadian Plumbing and Heating Association
The Canadian Plumbing and Heating Association's troubleshooting tips start with the obvious: watch out for water leaks. “It's a hot topic,” says the association's CEO, Satinder Cherra, explaining that a significant percentage of insurance claims are due to water damage. “It can be an expensive problem, not to mention that if left unchecked, water damage can develop into mold problems that pose a health hazard.”
In his experience, the most common causes of water leaks tend to be burst supply lines from faucets, toilets or appliances.
“The best way to prevent leaks while on vacation is to close your water supply valve, which is usually located right at your water meter,” Chera says. “If you do, be sure to turn off your water heater as well.”
There are many products available to help detect and manage potential leaks, such as automatic shut-off valves, he continues.
Insurance claims: The key message is “Keep your assets”
If customers do have to file a claim, they should be aware that standard policies only cover certain types of water damage, explains Rob de Pruys, national director for the Insurance Association of Canada. For example, a sudden, unexpected plumbing leak is covered. But sewage backups and flooding caused by heavy rains aren't. These cases usually require optional coverage.
“If the pipe under your sink has been leaking for years and then bursts, that's not going to be covered,” de Proust adds. As normal wear and tear isn't covered, he stresses the key message is to “maintain your assets.”
A claim may also be denied if there is no one to regularly check on the home when the owners are away. Depending on the insurance company, in these cases, homeowners will be expected to have someone stop by the home at least once or twice a week.
My basement is unfinished and well-drained, so in my situation the damage was manageable and no insurance claim was necessary. Getting a water bill adjustment from the City for out-of-control consumption is an entirely different story (especially now, when water providers are dealing with much bigger problems after it was just discovered that a huge number of Toronto's water meter transmission units have failed, causing havoc with bills).
But I have hope. First, to qualify for a rate adjustment, water usage during the period in question must be at least three times the household's normal daily average usage. No problem. Mine was 40 times normal.
Also, water providers seem more likely to be lenient on these issues if you've reached the “vintage” stage of age and have a high enough income that you're less likely to have a wallet full of platinum credit cards. I relatively meet these criteria, but I didn't find them particularly helpful. But if they help in this case, so be it.
I wish you success.