Like many in Newmarket, Darrin Nikolaus awoke to a loud bang on the morning of Aug. 28.
The Quaker Trail resident realized it came from a power outage and he waited all day for power in his area to be restored. When the power did come back, he said the surge in the outage had ruined many electronic devices and appliances, including a dishwasher, coffee maker and patio heater. He said it cost about $4,500 to replace all his damaged electronics.
He submitted a claim to Newmarket-Tay Power’s insurance for the damages. But citing the outage was caused by a freak incident — a squirrel contacting a key switch — the insurance company denied the claim.
“I’m in (insurance) claims, and this is a bullshit letter if I’ve ever seen one,” he said. “Somebody like Newmarket Power should have safeguards in place … We’re out a lot of money."
Newmarket residents are raising concerns about the insurance fallout of a massive power outage that left more than 5,000 without electricity in August. NT Power said a wayward squirrel contacting a critical switch caused the outage.
Multiple residents have since reported that their electronics were damaged by the power outage, but their claims for compensation were denied.
Magdalena Schlegel said she is "not thrilled" by the NT Power response.
“It seems like an unusual event,” she said. “People make mistakes. I just want a little bit of a better explanation.”
In a letter provided by her, MEARIE Group manager Ken Khadoo, NT Power’s insurer, said there are circumstances beyond the control of electricity distributors.
“The power interruption you experienced was a consequence of a squirrel coming into contact with an overhead switch, causing an arc fault and leading to a pole fire,” Khadoo said. “Newmarket-Tay Power Distribution Ltd. had absolutely no control over this incident. Accordingly, in absence of any negligence … we cannot assume any liability on this claim.”
NT Power president and CEO Ysni Semsedini confirmed the stance.
“I can understand our customers' frustration regarding the outage and the subsequent damages to their home appliances,” Semsedini said. “Unfortunately, the source of the damage was determined to be animal contact … These types of outages are outside of NT Powers' control and the reason why claims were ultimately rejected.
“I appreciate that wasn’t the answer our customers were hoping for, and to be honest, it wasn’t the one I wanted to give.”
Semsedini added that customers should contact their home insurance providers, which may cover this occurrence.
Antonio Rizzuto said replacing his electronics cost about $2,775, adding Southlake Regional Health Centre also had to replace a heart monitor he uses. He questions the reasoning for the denied claims.
“A squirrel tested the switch. With all the experience with hydro, you don’t think they would have these switches protected?" he said.
Nikolaus also said he is not content with the explanation. He said power outages are a regular occurrence, and he is fine with them happening. But he said this went beyond a regular outage.
He said he is trying to contact the insurance provider and hopes they still might budge.
“I hope they actually come to table and accept there was an issue they are liable for,” he said. “At least a portion of it, if not all of it … Totally out of the norm, and then they just want to wash their hands of it.”
