Gas Leaks and Insurance

Will insurance cover natural gas leaks?

Natural gas is a valuable resource but can be dangerous if improperly handled. Gas leaks are a serious issue, and understanding your home insurance coverage is essential for peace of mind.

In Ontario, whether home insurance covers gas leaks depends on the circumstances surrounding the leak and the specific terms of your policy. Generally, standard home insurance policies in Ontario will cover damage caused by gas leaks, such as if:

• Sudden and accidental damage: If a gas leak causes sudden and accidental damage, like a fire or explosion, your home insurance will likely cover the cost of repairs to your home's structure and damaged belongings and may also cover additional living expenses if you are displaced.
• Liability protection: Your policy may provide liability coverage if a gas leak injures others or damages a neighbour’s property. This can help cover legal and medical expenses if someone sues you or requires treatment due to the incident.

Insurance would not cover your home if a gas leak were caused by:

• Negligence or lack of maintenance: Your insurer may deny the claim if the gas leak is caused by poor maintenance, such as failing to repair a known issue with your gas lines or appliances.
• Wear and tear: Policies typically do not cover damage caused by gradual issues such as aging pipes or old appliances, as these are the homeowner's responsibility.
• Appliances and equipment: Insurance may not cover the repair or replacement cost of old or faulty appliances causing a gas leak. Coverage may only apply to damage caused by the leak, not the appliance itself.
• Natural disasters: Gas leaks resulting from natural disasters, such as earthquakes or floods, may only be covered if you have specific insurance riders for those events.

Insurance and natural gas leak example

Here is a scenario illustrating a typical case where home insurance covers the damage from a gas leak that was sudden, accidental, and beyond the homeowner's control:

John and Sarah own a home in Ontario and have a standard home insurance policy. One evening, they smelled gas in their kitchen and immediately evacuated the house. They contacted their gas provider, who discovered a gas pipe under the kitchen had cracked due to recent construction work nearby, causing a leak.

While waiting for repairs, the gas leak worsened, and a small explosion occurred, damaging the kitchen and some of their appliances, including the stove and fridge. The explosion also caused minor smoke damage to their living room furniture and belongings.

Since the gas leak and explosion were sudden and accidental, their insurance covers the structural damage to the kitchen, including repairing walls, cabinets, and flooring. The policy also covers the replacement of damaged personal belongings, like the fridge and stove.

Because the damage made their home temporarily uninhabitable, their coverage paid for a hotel stay and meals while repairs were completed.

Fortunately, no one was injured. If the explosion had harmed a neighbour, John and Sarah’s home insurance liability coverage would have helped with any medical expenses or lawsuits resulting from the incident.

What to do if you find a gas leak

If you find or suspect a gas leak at home, acting quickly to ensure your safety and prevent a potential disaster is critical. Here are the steps you should take immediately:

• Turn off your gas supply (if possible) and evacuate your home immediately. If you can safely access your gas shut-off valve without going through the area of the leak, turn off the gas supply. The valve is usually near your gas meter. If unsure, evacuate first and leave it to professionals.
• Do not try to fix the gas leak yourself. Mishandling it could lead to a fire or explosion.
• Contact your gas provider and a licensed professional to inspect and repair the issue.
• Report any damage to your insurance provider as soon as possible, and document the extent of the damage for the home insurance claims process.
• Avoid using phones, electronics, matches, flames, or starting your car near the gas leak.
• Once at a safe distance (at least 100 feet away), call your gas company to report the leak. Most gas companies have emergency hotlines. If unable to reach the gas company or if the situation seems severe, call 911 for emergency assistance.
• Wait for the gas company or emergency personnel to confirm it is safe before returning to your home. They typically check for residual gas and ensure the leak is sealed correctly. Once it's safe, open windows and doors to ventilate any remaining gas from your home. This will help disperse any gas still lingering inside.
• Once the leak is under control, hire a licensed professional to inspect and repair damaged gas lines or appliances. The gas company may offer this service or recommend a certified technician.

What does a gas leak smell like?

A gas leak smells like rotten eggs. This distinct odour is added to natural gas, which is naturally odourless, to make leaks easily detectable. If you smell this odour, do not ignore it. It's a clear sign of a gas leak, and you should exit your home and call for assistance immediately. Open windows for ventilation, and call your gas company or emergency services.

Common reasons for gas leaks

Here are four common causes of gas leaks at home:

• Damaged or corroded pipes: Over time, gas pipes can become damaged or corroded, especially if made of older materials like steel. This can create weak points where leaks can develop.
• Improper installation or maintenance: To prevent leaks, gas appliances and lines must be properly installed and maintained. This includes using qualified professionals for installation and repairs, regularly inspecting and cleaning appliances, and ensuring proper ventilation.
• Natural disasters or accidents: Earthquakes, floods, or other natural disasters can damage gas lines, leading to leaks. Accidents, like a car hitting a gas line, can also cause leaks.
• Loose connections: Connections between gas appliances and lines or between different sections of the line can loosen over time, creating a pathway for gas to escape.

Get clear on your policy limits for gas leaks with our brokers

It's important to understand your home insurance coverage in Ontario and take preventative measures to protect yourself and your family from the dangers of gas leaks. If you have any concerns about gas leaks, don't hesitate to contact your insurance company or a qualified natural gas professional for guidance.