Derek McRitchie is the owner of two local brokerages: Ottawa Real Estate and McCauley Agencies.
McRitchie was born in Moose Jaw and attended Central Collegiate Institute. Graduating from post-secondary education in 2003, McRitchie is C.A.I.B. (Canadian Accredited Insurance Broker) accredited and is trained both as a Realtor and an insurance broker.
To minimize risk to your property this summer, he offers some tips based on his 23 years in the industry:
Preventative maintenance
- Unsecured objects
“Objects like recycling bins, barbecues, fire pits, patio sets… (should) be stored away, kept in the shed, or moved up against the house,” said McRitchie. It’s a good idea to tie these down.
- Trampolines
McRitchie mentioned that trampolines are often involved with insurance claims.
“A lot of people have trampolines. You want to make sure that those are anchored down with sandbags over the legs,” he said. A lot of trampolines are found in a neighbour's yard and may have caused damage.
- Roofing
“If you have shingles and they are 25 – 30-year shingles, that doesn’t mean that you can just leave them that long,” McRitchie explained.
McRitchie noted that insurance coverage requires a hole in your roof. If sealant is worn and water can get in, this may not be covered.
It’s good practice to check your roof or have a roofer do a tune up. “A lot of people have a missing shingle and they don’t even notice.”
Any trees that touch your roof or siding should also be trimmed.
- Water damages
“When we get a big storm, and we get 2-3 inches of rain in half an hour, houses aren’t really built to keep that out,” said McRitchie.
Proper grading around the foundation of your home is crucial.
“To me, the grade around your house is by far the most important,” explained McRitchie. “A lot of people (with bad grading) are going ‘oh, I don’t have water in my basement.’ Well, you probably have water underneath your floor that is causing major damage (over time).”
The best way to grade around your house is to cap it with clay. Other materials like topsoil, sand, or crusher dust will contract. Re-packing may be necessary every few years.
“What we see on around 95% of home inspections is the grade around the house isn’t good,” he said.
This problem is common in the northwest of town. “You’ll see the floors are crowned up a lot towards the center of the basement floor. Some of them are 10 years old and they’re up four or five inches in the middle,” McRitchie said. “That’s structural, and that stuff isn’t covered by insurance.”
- Eaves troughs
“Keep your eaves troughs clear of leaves and pine needles, because then it’s not going to do its job,” said McRitchie. Install downspouts with at least a five-foot extension.
- Sump pumps
Homes built after 2008 will have backflow valves. “You’re supposed to be servicing those and checking them every six months or so, and you can check with your plumber.”
“We have lots of issues in Moose Jaw with sewer lines,” he added.
A sump pump should be reactive. If it’s always running, this could be caused by poor grading or clogged eaves troughs.
McRitchie recommends backing up your pump with battery power. “(In) a big rainstorm, there’s usually lightning and that’s most likely when you have a power outage. If you get two inches of rain in half an hour and the power goes out… the basement will fill up.”
Insurance coverage
Standard policies cover your property. It’s best to confirm your level of coverage with your broker, as some policies vary on fire, wind, and hail coverage.
Beyond this, negligence or unanticipated damage to third parties is covered by liability insurance.
“An example would be if you have a fire in your backyard that spreads to their yard and their house. This is where your liability will kick in,” explained McRitchie.
On an initial claim, you typically lose a claims-free discount (ex. 15%) for a three-year period.
If you make a second claim within this period, you will see a surcharge of around 35%.
You have two years from the date of loss to have the claim submitted and the work completed or a payout. “Personally… if it was around $4,000 - $5,000, I would have to think hard about claiming the loss. You have to take into account your deductible plus the extra premiums on your policy for a few years. You may have another claim soon after that’s $50,000, and those big ones are worth it,” he said.
Before making a claim, call your broker to review your options and know how much money you will pay out of pocket indirectly.
These steps also improve the re-sale value of your home.
“(With) two identical houses side by side… One guy has the grade fixed up and the other guy left it… maybe neither gets water in the basement, but when they go to sell it the guy who did maintenance is likely to get more money,” he said.
Certain improvements come with a discounted rate. “If you have a back-flow valve, sump pit, and sump pump in your house, you can get a discount for that,” McRitchie added. Call your broker for details on other cost-saving measures.
We’re here to help
Ottawa Real Estate is located at 324 Main Street North and is open Monday to Friday between 8 – 5:30, and Saturdays between 9 – 5. The office can be reached at 306-694-4747.
McCauley Agencies is located at 453 Main Street North and is open Monday to Friday between 9 – 5. The office can be reached at 306-694-4848.
