3.4 - Hazards Flashcards
Hazards
-A hazard - (1) a risk or probability that the event insured against might occur. (2) A condition that engenders or increases the chances of a loss
-an attribute of the property to be insured or its physical surroundings that can lead to a peril or cause the loss or damage due to that peril to be more severe. The greater the hazard, the greater the likelihood that a peril will occur
2 Types of Hazards
- Physical Hazard - a hazard arising from the physical condition or characteristics of the object that is insured. Concerns property to be insured > examples: construction type, protected by fire dept or burglar alarm, located in high crime area
- Moral Hazard - a hazard arising from the character, interests, habits, and lack of integrity of the insured or person concerned. Concerns the attitude of the owner of the property to be insured > examples: possible willingness to try to profit from the property policy by bringing loss on themself or being less diligent in trying to avoid it, not getting burglar alarm
Key Peril Hazards
- Fire Hazard
- Lightning Hazard
- Water Perils Hazards
a. Water Damage Hazard
b. Flood Hazard
c. Sewer Backup Hazard
d. Sump Pump Hazard
e. Ice Damming Hazard - Wind or Hail Hazard
- Roof Collapse Hazard
- Earthquake Hazard
Key Peril Hazards - 1. Fire Hazard
-most expensive peril > not most frequent but often most severe
Common Domestic Fire Hazards, if cannot be eliminated, they should be controlled or reduced as much as possible:
-Cooking hazards > keep area clean and uncluttered, combustibles removed, hood to protect cabinets above
-Unattended portable heaters > can overheat, or malfunction if knocked over, best to fix the problem instead of needing to use these - fix drafty window, use ULC-approved only, placed with no combustibles around and placed where they cannot be knocked over, use when people present and not when asleep
-Clothes-dryer lint > dry should be properly vented and lint trap cleaned after every use
-Overloaded electrical circuits > correct fuses should be used, circuit breakers that trip or fuses blow is a sign of malfunctioning appliance or overloaded circuit and should be rectified immediately, can cause wires to melt within the walls and start a fire
-Faulty or old, outdated wiring > arcing from worn insulation or loose connection, ins companies have guidelines for acceptability of certain types (aluminum, knob-and-tube, fuse boxes, owner installed wiring)
-Unattended candles > candles should be used in proper container to protect the flame and prevent it from being knocked over, never place on a holiday tree
-Wood fireplaces and woodstoves > adequate clearance of chimney, professional installation, creosote residue to be cleaned regularly, front of the fireplace should have a screen, combustible materials removed. Gas fireplaces have less risks, but still require maintenance and cleaning
-Careless smoking, kids playing with matches > smoke detectors required by code
Fire Protection:
1. Public > fire dept. COPE - factors including Construction, Occupancy, Protection, and Exposure, to be assessed in any risk
2. Private > smoke alarms, fire extinguishers, and sprinklers
Key Peril Hazards - 2. Lightning Hazard
-in general the tallest structure in an area is the most likely to get hit, but pollution can make other structure vulnerable
-if the tallest structure (also farm houses in a flat field) - should be equipped with lightning rods and grounding wires, or surround by tall trees but not too close to the dwelling
Key Peril Hazards - 3. Water Peril Hazards
-collectively the water perils are the most expensive peril - more frequent but less severe than fire (typically does not result in total loss)
Key Peril Hazards - 3.a) Water Damage Hazard
-domestic water containers - the more there are the higher the risk. Should be professionally installed and properly maintained.
-high risk are Hot water tanks, after life span of 10-20 years, they tend to burst. Damage can increase if insured is away. Can install a plastic or tin pan around the bottom, along with monitored water detector (can even have auto shut-offs), or use a tankless heat-on-demand system
> turn off main water valve when leaving the dwelling for more than a day, so if pipe freezes, the toilet overflows, or the HWT bursts, damage is limited to the amount of water in the system
Key Peril Hazards - 3.b) Flood Hazard
-buildings being built on coast or flood plain, which can be damaged by storm surges and flooding
-municipalities no longer allowing to build on flood plains
-can install Sewer backflow valves and not storing valuables in the basement
-municipal sewer infrastructure is aging and outdated, only fixed when required instead of being replaced. Urban areas have little unpaved ground to absorb the water so it flows into the sewer system and if over capacity or outdated, becomes overwhelmed, causing pluvial flooding. Large buildings all drain into the existing sewer system
Key Peril Hazards - 3.c) Sewer Backup Hazard
-properties with a basement are much more exposed to SBU than those without a basement
-properties at a lower elevation have an even greater exposure than those higher up
-areas with a history of SBU are likely to see more of it unless the municipality takes steps to help prevent it
-solution is to have a backflow valve professionally installed > this prevent the flow of sewage back into the sewer lateral (shouldn’t be installed with foundation poured on it)
-sewer lateral can become clogged over time with tree roots or broken due to the settling of the foundation
-even apartment buildings can have SBU on an upper floor if a drain pipe on that floor becomes clogged with something, but is rare
Key Peril Hazards - 3.d) Sump Pump Hazard
properties with a basement close to or below the water table face damage from ground water if the sump pump system fails or is turned off
-solutions to minimize risk - include redundant pumps in case one fails, a power backup, and a high-water monitoring device
Key Peril Hazards - 3.e) Ice Damming Hazard
-occurs when snow that has melted on the roof due to a thaw and then freezes again at night, clogging the eavestrough downspouts and eventually the eavestrough themselves. Subsequent thawing causes melted snow to run from the roof down into the clogged eavestrough and can backup under shingles. Water penetrates under the shingles and into the structure
-heat escaping through a poorly insulated roof is a common cause of snow melt on the roof - if there are icicles all over and snow remains on roofs of nearby buildings, problem is likely roof insulation or broken windows in the attic
Key Peril Hazards - 4. Wind or Hail Hazard
-some regions are more frequent or severe
-“hail alley” in Alberta causes storms and golf ball sized hail, due to its unique proximity to mountains, the elevation of the plains, and weather systems
-some roof types are more susceptible to lifting from wind events or damaged from hail events - especially age is a factor
Key Peril Hazards - 5. Roof Collapse Hazard
-collapse due to snow load
-structures should follow local building codes
-exposure is increased for flat and low-peaked roofs - should have professional shovel off the snow during extreme amounts
Key Peril Hazards - 6. Earthquake Hazard
-tectonic plates, as continent drifts it grinds against other plates, tremendous force is unleashed and the resulting energy waves travel from the epicentre out through bedrock and soil, creating earthquake shock waves.
-some areas of Canada are on “active” fault lines, areas have been delineated into different EQ zones - determined with tools or online EQ maps
Factors that can make the exposure greater:
>underlying geology of the insured’s premises - certain soil types (ex. clay or unconsolidated silt and sand will liquefy from shaking) and depths of bedrock
>method of construction - concrete has poor tensile strength so can crack or crumble, bricks crumble, reinforced concrete has better tensile strength, wood frame allows flexibility, steel construction has least exposure as it has superior tensile and compressive strength and is flexible
>the age of the structure - building codes have been revised as we learn more, prior to 1980 poses higher exposure, unless retrofitted
>the height of the structure - taller buildings sway and require EQ-dampening feature installed
-risk of conflagration - underground gas and water mains can rupture causing fire and no water to fight with
Conflagration
- a fire involving two or more risks or extending over a wide area
- Any unusually large fire
