Read This Before the First Freeze
A pre-winter commercial property inspection takes an afternoon, yet most building owners only think about it after the first burst pipe. The furnace is overdue for service, the roof drains are full of leaves, and nobody has looked at the policy since it renewed. Then a cold snap hits on a long weekend.
The problem is that winter damage rarely comes from one big failure. It comes from small things nobody checked: a clogged drain, a heating zone set too low, a building left empty a few weeks too long, or a limit that no longer matches today’s rebuild cost. Miss one and a routine claim can turn into an expensive one. The goal here is to help you look at your building the way an adjuster would, before winter does.
This focuses on commercial property owners and managers in Alberta, British Columbia, Saskatchewan, Manitoba and Ontario. Policies vary by insurer, and the wording of your own policy is what counts. Timing matters too. On the Prairies, hard frost often arrives well before the calendar says winter, and holiday closures start in December. The Pre-Winter Commercial Property Inspection Checklist goes further than this blog, with every building check and policy question on two printable pages you can carry as you walk the building.
Why Is Winter So Hard on Commercial Buildings?
Cold, snow and ice put stress on every system in a building at the same time. A few recent numbers show what that costs owners in Western Canada:
- Western Canada’s January 2024 deep freeze caused more than $180 million in insured damage, much of it water damage from frozen and burst pipes
- The August 2024 Calgary hailstorm caused about $3.35 billion in insured damage, the second-costliest insured event in Canadian history
- Alberta has had at least one major hailstorm every year for the past two decades, according to the Insurance Bureau of Canada
Hail and winter are more connected than most owners expect. A roof dented or punctured in summer can hold up until the first melt, then let water into the ceiling below.
Frozen pipes are another quiet risk. Restoration firms report that in modern buildings, frozen pipes usually trace back to a heat or power failure. One failed furnace over a holiday weekend is enough.
The most common winter losses on commercial property include:
- Burst water pipes and sprinkler lines
- Roof leaks from ice dams and old hail damage
- Roof strain from heavy, wet snow
- Break-ins and vandalism at buildings left empty
Most of these start small, and a regular walk-through catches them early. The checklist turns each risk into a tick box you can work through in one visit.
What Should You Check on Your Building Before Winter?
Start with the parts of the building that fail first in the cold. Each area below takes minutes to check, and most items need no contractor.
Roof
- Clear roof drains, gutters and downspouts of leaves and debris
- Have a roofer look for damage, including hail damage left over from summer
- Book snow removal for the roof, walkways and fire exits before the first storm
Pipes and sprinklers
- Wrap pipes on outside walls and in cold areas like stairwells and loading docks
- Turn off and drain outdoor taps
- Book your yearly sprinkler inspection
- Keep sprinkler areas at 4°C or warmer, the minimum set by the NFPA 25 fire sprinkler standard
- Show your staff where the main water shut-off is
Heating
- Have the furnace or boiler serviced before the cold sets in
- Keep the heat on after hours and over holidays, in every zone
- Add a temperature alarm that texts your phone if the building gets too cold
Outside and security
- Put outside lights on timers and keep entrances well lit
- Check doors, windows and locks
- Take photos of every room, the roof and the outside
Those photos take a few minutes and give an adjuster a clear record of the building before any damage. Store them somewhere off-site, like a cloud folder or an email to yourself.
Red Flags Hidden in Your Commercial Property Policy
Some of the costliest winter surprises sit in the policy wording. Two clauses catch owners off guard more than any others.
The 30-day vacancy rule
Most commercial property policies cut back coverage once a building has been empty for 30 consecutive days. Water damage, theft and vandalism are often the first coverages to go. Some policies also apply the rule to unoccupied buildings, where the contents stay but nobody works there.
That matters in a market like Calgary, which has the highest office availability rate in Canada at 20.5%, according to Altus Group. Seasonal shutdowns, gaps between tenants and long renovations can all start the clock.
Being insured for less than the rebuild cost
Most commercial policies include a coinsurance clause. It asks you to insure the building for a set share of its rebuild cost, often 80%, 90% or 100%. Fall short, and the insurer pays only part of any claim, even a small one.
Here is how that plays out on a building that costs $2,000,000 to rebuild, with a 90% coinsurance clause:
- Limit the policy requires: $1,800,000
- Limit the owner carries: $1,200,000
- Water damage from a burst pipe: $300,000
- Amount paid before the deductible: $200,000, leaving the owner to cover the other $100,000
The Insurance Bureau of Canada says many businesses wrongly assume any loss under their limit will be paid in full. Rising costs make the gap easy to miss. Calgary’s non-residential construction costs sit about 12% above their 2023 level, according to Statistics Canada, and IBC has noted rebuild costs in some areas have climbed more than 80% since 2019.
There is no standard rebuild-cost calculator for commercial buildings, so IBC recommends an independent appraisal. The checklist shows what to look for in your policy.
What If Your Building Will Sit Empty This Winter?
A closed building can stay covered, but the planning has to happen before the doors close. Before the building empties, you can:
- Call your broker at least 30 days ahead, so there is time to arrange cover
- Ask for a vacancy permit, an add-on that keeps coverage active while the building is empty
- Write down every condition the permit sets, since missing one can void it
Common Canadian vacancy permit wordings ask for three things:
- A check of the building at least every 72 hours
- Either the heat kept on, or the water shut off and the pipes drained
- The fire sprinkler supply left on in both cases
A visit means a full walk-through, from the basement to the roof hatch. Check the heat or the water, look for leaks and ceiling stains, and look for signs of a break-in. Keep a quick record of each visit with the date, the time and who checked. A note on your phone works, and insurers may ask for it if you make a claim.
If the building could sit empty for months, ask about a vacant building policy instead of a permit. Some municipalities also require their own vacant building permit, so check with your city.
Smart Ways to Prepare and Respond This Winter
Winter damage is easiest to handle when the plan exists before the problem does. Through the season, you can:
- Walk the building within 24 hours of a big storm, heavy snow or a cold snap
- Test your temperature alarm and update your contact list before long weekends
- Keep a printed copy of the checklist and your broker’s number by the main water shut-off
If a pipe bursts, turn off the main water valve first. Take photos before any cleanup starts, then call your broker and a cleanup company.
If you find a break-in, stay outside and call the police. Take photos once it is safe, and call your broker with the police report number.
Good questions for your broker include:
- Does my policy have a vacancy clause, and how many days does it allow?
- Is my building insured for today’s rebuild cost?
- What conditions would come with a vacancy permit for my building?
You may want to take extra care if your building will close for more than a few weeks, your roof took hail damage in the last two years, your building limit has not changed since before 2023, or parts of the building go unheated. If even one of these sounds familiar, bring the checklist to your next policy review.
Here to Help, at Any Step
Ai Insurance Organization Inc. works with commercial property owners, landlords and property managers across Canada, and sees how often a winter claim starts with one small, missed check. The team can help you review your building limit and set up a vacancy permit when a building will close.
If you want to head into winter confident about your building and your policy, we can help you get started. Ai Insurance Organization Inc. takes the time to understand your building and what your policy asks of you, so a missed clause does not become the reason a claim falls short. Peter Goyer, Account Executive, is glad to talk it through, before the first freeze or after a storm. Call him at 1 (437) 317-6678, email peter@getcertain.ca, or contact us to schedule a conversation.
