Residents seek insurance coverage answers

Eagle-Tribune (North Andover, MA)

Sept. 28--The roll-out of recovery efforts after the Sept. 13 natural gas disaster has been anything but smooth.

As Columbia Gas hands out space heaters, at least one family said they were initially told their homeowner's insurance would be nullified if they used them.

Heather Cleary, of Andover, said she called her agent to get their opinion about how to keep her home's pipes from freezing when it gets colder, and was initially told she wasn't allowed to use a space heater at all under her policy.

"They'd rather move us out of the house, under the loss of use policy ... and basically winterize the house," she said.

Cleary, who has Worcester-based Hanover Insurance, said she was told on a subsequent call on that the underwriters were reviewing their policies "due to the magnitude and scope" of the situation, but had not made a decision to change anything.

Cleary said she went line by line through her policy, but could not find any language prohibiting the use of space heaters.

When she called her agent, she was informed that her specific policy did not include language prohibiting space heaters, but that if an agent were to look into their guide as to whether a customer could use a space heater, the language that comes up indicates that space heaters are not eligible.

Abby Clark, a media representative with Hanover Insurance, told The Eagle-Tribune that fire is a covered cause of loss and "would be insured under our homeowner's policy ... of course a fire inadvertently caused by a space heater or cook-top would be covered."

Thousands of people in Lawrence, Andover and North Andover remain without gas service after over-pressurized gas ruptured lines and caused explosions and fires across the region.

Columbia Gas, who owns and operates the affected lines, is distributing hot plates and space heaters free of charge to affected residents in an effort to mitigate the long-term effects, but the distribution has caused widespread confusion.

Each home must be inspected to ensure the system could support the space heaters safely. In South Lawrence, teams of National Guardsmen, an electrician, a Columbia Gas contractor, and a Mass Save energy assessor are going door to door to affected homes to conduct those inspections. In Andover and North Andover, residents must go through their respective claims center to schedule an inspection.

Most residents have gone through this process, only to find out that -- much like the aging infrastructure of the natural gas pipeline in the area -- their electrical system cannot support the 20-amp demand, and have been denied the heater.

According to data released by Lawrence Mayor Daniel Rivera's office, fewer than 10 percent of inspected homes have been approved for space heaters.

A spokesperson with Columbia Gas said that safety concerns are precisely why electricians are going house to house before handing out the space heaters.

"If the house does not have suitable wiring, a space heater is not being left in the house," said Judy Rakowsky. "The company is working through alternatives with the homeowners, and this is still in process. We would encourage concerned homeowners and renters to contact their insurance provider with questions."

State Attorney General Maura Healey said the confusion over insurance coverage pertaining to space heaters is just one example of why she's encouraging Valley residents to call the newly established hotline for help being run from her office.

"We want to make sure no one loses coverage," she said.

Other residents, fueled by what they say is a lack of clarity in the days following the explosions and fires, said they have also put in calls to their insurance agency to make sure they will be covered if they accept space heaters and cook-tops provided by Columbia Gas.

Andrea O'Donnell of North Andover said she requested a hot plate and space heater, and checked in with her insurance company, Liberty Mutual, to make sure she was cleared to use them.

"(The agent) said he looked through all the binders ... and all of their underwriting, and said he couldn't find a single thing that would disqualify us," said O'Donnell.

A spokesperson for the Insurance Information Institute, an industry association that aims to improve the public understanding of insurance, said policies generally cover fire damage.

"Fire-caused property damage is generally covered under standard homeowners insurance policies but portable space heaters have been known to pose a fire risk and must be used carefully," said Michael Barry.

The state fire marshal Peter Ostroskey issued a statement with safety tips for hot plates and space heaters.

Plug space heaters directly into wall outlets, do not use extension cords, keep heaters 3-feet away from anything that can catch fire, do not put anything on the heater, turn space heaters off when you leave the house or go to bed.

Plug hot plates directly into wall outlets, do not use extension cords, only use hot plates on the counter top, keep a 1-foot circle of safety around it, turn off when not in use, have a pot cover nearby to put a lid on any fire.

Lawrence Mayor Daniel Rivera said Tuesday he hadn't heard of issues with insurance coverage due to the use of space heaters. But he was adamant he would stand up for residents if there were any problems.

"We're going to be part of their army, we're going to fight for them," he said.

If a space heater does cause a fire, Rivera said the city will fight with insurance companies "to make sure (residents) get paid" under their policies for any damages.

The Division of Insurance issued a statement on Tuesday indicating it would not find it reasonable for insurers to "re-rate, cancel, non-renew, or refuse to provide insurance coverage due solely to a policyholder's status as a victim of this incident."

Jacqueline Horigan, a spokesperson with the Division of Insurance, said Wednesday that it is possible exclusions for space heaters could exist in a customized policy, but would "expect the carrier to be more liberal int he way the policy is read under these special circumstances."

Consumers with claims-related issues can call the DOI at 617-521-7794.

Residents can also call Attorney General Maura Healey's hotline at 617-573-5370 for assistance with the claims process with Columbia Gas.

In the meantime, regardless of coverage, Cleary said she would not use a space heater.

"It's scary," she said, noting there was already a fire caused by someone using a hot plate just down the road from her. "Now you have to wonder, what are your neighbors doing ... and be ever vigilant, I guess."

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