What getting a backyard fire pit will do to your home insurance

“It’s our oasis in this desert of uncertainty that the pandemic, and the public health orders, have created,” says Peters. His family has taken advantage of the opportunities to read, cook and dine outdoors, watch the wildlife, relax in a hot tub and host small, socially-distanced gatherings. “It has allowed for a small sense of community,” adds Peters. “And the grill and smoker allow me to believe I can cook.”

Considering you’ve likely forgone vacations, and limited dining and entertainment for the majority of the year, you may have money to put toward a backyard upgrade. According to Statistics Canada, Canadians have gone from saving 2% to 3% of their disposable income, to a whopping 28.2% in the second quarter of 2020. 

But what about your home insurance? And those premiums? Will they go up as a result of those outdoor home improvements? Here’s what you need to know. 

Are backyard fire pits legal in your area? 

It can vary. The municipality may also dictate what type of fire is allowed, if any. For example: in Toronto, open-air burning is prohibited altogether, leaving the only options for backyard fires as either wood cooking fires (with stringent rules) and fire pits that use propane or natural gas (and are certified by the Technical Standards and Safety Authority, a.k.a. the TSSA).  Whether you’re thinking of having a backyard fire or upgrading your outdoor space, you need to check with your local municipality to make sure you won’t be breaking any rules. 

Pete Karageorgos, director of consumer and industry relations with the Insurance Bureau of Canada, says you need to answer a few questions first: “Are there any bylaws you have to abide by and follow? Are fire pits banned where you are? These are things homeowners need to be aware of beforehand.”

You can call or email or search the website of your local municipality to find out if you can legally have a backyard fire and of any requirements, such as if you need a permit. There may be situations where you need to follow rules in terms of spacing or materials to use as well.

Following those rules is critical. Not only does it keep you in the clear legally, it affects your home insurance coverage in the case of an event of damage or injury. 

“If you don’t follow municipal bylaws, in addition to having a claim or lawsuit filed against you, your insurance company might claim you were negligent by not properly protecting your space,” says Karageorgos. “And that may limit the amount of coverage that the insurance company is going to provide you with.”

And if you’re doing any yard renovations that require digging, like an in-ground hot tub or a deck, there are other precautions to consider. You need to contact your provincial service that checks for buried infrastructure like cables, wires and pipes before you break ground (in Ontario, it’s Ontario One Call). Also, be wary of any safety specifics. For instance, patio heaters need to remain outdoors and be stored properly indoors, as they can increase the risk of carbon monoxide poisoning or fire otherwise.

Is a fire pit covered by home insurance?

That depends on a few things. There are different portions to your insurance policy: Building, contents and liability. “If you’re a homeowner, you want your policy to cover damage to your property, the building itself and its contents,” says Karageorgos. “You also want to protect your liability, like if someone is injured on your property or claims you caused damages to their property.”

The other aspect of a property insurance policy is additional living expenses, like if there’s a fire and you can’t live at your home while it’s being repaired. This coverage sets you up in alternate accommodation. “Basic policies will cover you for basic events, like fire, theft and damage from weather events,” says Karageorgos. “You can add on additional coverage; you can add on things like electrical surge protection.”

Will backyard upgrades affect your home insurance policy?

Short answer: Definitely. Long answer: It really depends on these three things. 

1. How it affects the value of your home
   If changes to your backyard increases the value of your property, let your insurance company know. “Insurance policies want to know about upgrades to your home—whether you’ve remodeled your kitchen or are adding a hot tub.” says Karageorgos. If you don’t update your insurer, you could be losing out in the event of damage. “For example, say you build a nice new cedar fence, and a car drives through it. If you never updated your insurer of the new fence, they’re only going to reimburse you for the value of that basic chain-link fence that was there when you moved in.”
2. How it affects increases risk
   If an upgrade increases the risk of harm, damage or injury to yourself, your family or guests on your property, you should inform your insurer. “It’s increasing your risk as a homeowner, and needs to be covered,” says Karageorgos. Think of the worst-case scenario injuries and accidents that can stem from yard additions, like fire pits, patio heaters, pools and hot tubs. In the event of an accident, you’ll want coverage. Even if an accident is caused by trespassers, including a wandering neighbour’s kid, your insurance will cover you for that, too.
3. How it affects premiums
   There’s a possibility that your premiums will go up, but being covered is the important thing. “Your premiums are based on your home value,” says Karageorgos. He references instances where tornadoes completely destroyed people’s homes: “If it will cost more to rebuild and replace your property because you’ve added more features, it stands to reason that your insurance premiums will follow.”In terms of fire, the type of burning (wood, coal or gas) may impact your premiums as well, but it varies based on your provider. Have that info handy to notify your insurance company in case they ask. (Find out about the other ways that COVID-19 may affect your home insurance premiums.)

How to make an insurance claim for your backyard 

PSA: Maintain current records of what you have, before you ever have to make a claim. “You’re going to need to support your claim by documenting what’s happened, what’s been lost and what the damage is,” says Karageorgos. “Keep an inventory, keep photos, and keep receipts.” He recommends quickly storing everything in the cloud, for both convenience, and in the event that your files are lost, too. 

These records will be integral if you have to make a home fire claim. “For example, there was a house fire and it spread to the deck, having photos of what the deck looked like before, and what condition the property was in, is important,” says Karageorgos. “Or if your barbecue blows up, you’ll want a record of what kind of barbecue it is and how much you paid for it.”

Once you submit your claim, it becomes a team effort. You’ll have to support your claim by explaining what happened; statements or reports by the fire department, police or hospital may be required. “You may have to help the adjuster,” says Karageorgos. “Their role is to help you settle, and if you’re an active participant, everything will go smoother.”

(For more on whether to make a claim or for fix up a fire at home, read this.)

Can you have a backyard fire if you rent your home?

If you’re renting and you want to add upgrades like a fire pit or heat lamps to your outdoor space, check with your landlord first and foremost. “The landlord is typically responsible for the building structures, and anything that’s fixed or attached to it,” says Karageorgos. “If you’re adding things without the landlord’s permission or agreement that could cause problems”—namely with your rental agreement. 

Even if you’re adding a feature that’s not permanent, like a fire pit, it still increases risk. If you don’t inform your landlord, even as a tenant,  you can be found responsible for an accident. Protect yourself: Get permission and make sure it’s covered. Updating your tenant insurance can’t hurt either. 

Don’t be overwhelmed by the paperwork. If a safe space or a sanctuary in your yard is just what you need, it could be worth the effort.