
With the extreme temperature ranges Canadians face each year, home heating and cooling can get expensive using traditional oil, gas, or electric systems. An electric heat pump or mini-split could seem like a better solution, and some governments may even offer financial incentives for their initial installation.
Changing your heating source to save money may be tempting, but it could affect your insurance coverage. Here are some things you need to know if you are considering any changes to how you heat your home.
What is a heat pump?
A heat pump transfers thermal energy from the outside to the inside of a building. The outside air is compressed, which increases the temperature, and is then circulated throughout the indoor space. This process can also work in reverse, providing cooling for warm summer temperatures.
The benefits of a heat pump may include lower energy bills and a smaller carbon footprint because they run on electricity. However, they may lose efficiency in colder weather, due to the extra energy required to extract heat from the air, and may not be suitable for every home, particularly those with insufficient insulation. A heat pump could also have implications for your home insurance policy.
Heat pumps vs mini-split systems
While heat pumps and mini-split systems may use similar technologies to extract energy from the air to either warm or cool, they are not they same. Generally speaking, heat pumps are ducted throughout your home whereas mini-split systems are ductless, normally mounted on the upper portion of a wall in a single room. Mini-split systems are typically not considered a whole-home heating source.
For either system, here are a few points to keep in mind:
Keep a back-up heat source. For extreme cold, a heat pump or mini-split system alone may not be able to keep you warm. While either could be a source of heat for moderate temperatures, your furnace or baseboard heaters may need to kick in on those extra-frosty nights. An even better idea is upgrading to a new furnace along with a heat pump as newer furnaces can be far more energy efficient than older models.
Use additional methods to keep heat inside your home. No matter what heating system you choose, keeping the heat inside your home is a smart way to lower your energy bills. Cold-proof your home with proper insulation, seal off cracks around windows and doors with caulking or weather stripping, and invest in double- or triple-pane windows with insulated frames or casement windows that have tight seals. Here are a few additional tips to help winterize your home.
Inform your insurer before adding a heat pump or mini-split. Like any major change to your home, when you make changes to your home heating system, you must inform your insurance representative as it may have an impact on your insurance coverage. Your insurance representative can also explain how insurance would respond to damage caused by extreme cold – and the importance of ensuring you take reasonable steps to sufficiently warm your pipes and home. In fact, it’s in your best interest to keep your insurance representative in the know about any major changes
Remember: Your insurance representative is there to help you protect your home and your belongings. Contact them if you are unsure about any home renovation or new heating system, or connect with IBC’s Consumer Information Centre for general insurance questions.
Want more information? Read about why it’s important to know your home insurance policy.