With the Town of Niagara-on-the-Lake turning its attention to the insurance challenges heritage homeowners say they’ve been facing, reaction to the town’s focus to the issue has been somewhat positive, though some say more work is needed to make a difference on the matter.
Jim Reynolds, who owns a home on Delater Street in Old Town, attended the latest meeting of the municipal heritage committee, where the town presented a staff report outlining the difficulties residents have had obtaining insurance for homes that may receive heritage designation.
The report was prompted by testimonies from Reynolds and fellow Delater Street homeowner Barbara Worthy, who appeared before NOTL council in October to raise concerns affecting their properties and another Delater Street home owned by Bruce Howard and Andrew Carderelli.
The big takeaway in the report is that heritage designation itself does not affect insurance coverage; however, factors related to it, including the building being built before 1940, could impact whether a property gets coverage.
Reynolds said he was pleased to see the town taking interest in the issue but believes governments and regulatory bodies need to approach things differently.
“I think that they have to live in the real world,” he said. “I mean, I’ll see whether my insurance company accepts the risks or it shouldn’t affect the rates. I mean, insurance companies can do what they want.”
The town quoted the following statement from the Ontario government in its report to the municipal heritage committee: “Insurance premiums should not go up because of a heritage designation. Some companies do not insure buildings over a certain age, but designation itself does not place additional requirements on the insurer and should not affect premiums.”
One recommendation in the report suggests homeowners shop around for insurance, echoing advice from the Insurance Bureau of Canada. Reynolds said that suggestion is unreasonable.
“I have a package of insurance that covers my house and my cars and my cottage and I don’t particularly want to start taking that apart to see I can find something which will save me a few hundred bucks on my house,” he said.
Reynolds also said insurance companies tend to view heritage homes as extravagant, citing the McArthur Estate as an example. He said homes like his are relatively modest, with upkeep that is not as costly as insurers may assume.
He added that if the issue is not resolved, the town should offset higher insurance costs by lowering property taxes for heritage homeowners.
Coun. Gary Burroughs, a member of the municipal heritage committee who attended the Jan. 14 meeting, said he sympathizes with heritage homeowners but does not support that proposal.
“It sounds lovely,” he said. “(But) there’s so many different areas with other challenges that are going to want to same treatment.”
Burroughs said the report was “fine” overall but criticized the lack of direct engagement with residents.
“I don’t know why, but I don’t think we the town are actually doing enough to answer each question by the heritage homeowner,” he said.
“I think (insurance companies), they’re saying, ‘Well it’s an old house, so it’s going to cost more.’”
Burroughs said the town should bring together insurance industry representatives and residents for a workshop. Reynolds said such efforts amount to little without legislation and enforcement.
When the town says it supports homeowners, he said, it “doesn’t solve any problems. Those are just assurances.”
