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Updated Aug. 30, 2024
For most Canadians, the purchase of their home is the largest investment they will ever make. Naturally, protecting that investment is particularly important to them. Purchasing homeowners' insurance is one way to protect that investment.
In many cases weather-related damage, and/or break-ins are the most common causes for home insurance claims. For example, damage to your home can be caused by:
But what if something goes wrong and you need to file a claim with your insurance provider?
A home insurance claim is a formal request by you, the policyholder, to your insurance company for compensation for a covered loss of a policy event. Your insurance company will validate, or deny, the claim and if approved, will provide payment for the specified loss.
According to the Insurance Bureau of Canada, insurers paid out $41.5 billion in claims in 2019.
Breaking that out into categories:
| Category | Paid | |
|---|---|---|
| Auto | $17,816 B | |
| Personal | $7,197 B | |
| Commercial | $5,026 B | |
| Liability | $3,559 B | |
| Other | $2,150 B | |
| TOTAL: | $35,748 B |
There are certain times when filing a claim makes sense, as long as the repair costs aren’t too close to the deductible costs. For example:
However, there are also scenarios you might want to think twice before filing a home insurance claim. For example:
If you choose to file a claim to your insurance provider, it’s important to understand the process.
First, assess the damage yourself as best as you can. Make sure there is nothing occurring that can make the damage even worse. Second, document everything by listing it but also by taking photos of everything. Next, confirm your policy’s deductible and coverage to make sure it makes sense to make the claim.
Talk to your broker. Some insurance providers can file a claim by phone, others require paperwork, photos and other documentation. It’s also possible you may have to replace damaged items first and submit receipts for reimbursement.
Not all claims are approved by your insurance provider. Insurance providers will send out claims adjusters to assess damages and the validity of your claim.
Claims might be denied if:
There are steps you can take to make the claim filing process easier.
First and foremost, know your policy, its exclusions, deductibles, and limits. Also, maintain an itemized list of your possessions with value, which will make it easier to assess damages if/when items are lost or damaged. Keep receipts if you have them for larger, expensive items. It’s also important to document your interactions with claims adjusters. Ask for paper or electronic copies of any reports or statements your adjuster makes.
Premiums are based on several factors. One single can affect premiums and a history of repeated claims in a brief period can significantly affect your risk factor and premiums. In the most extreme cases your insurance provider may cancel your policy if you are deemed too high a risk.
No. If your damage costs are lower than your deductible it is wise to pay out of pocket and retain your good standing with your insurance provider. It’s also important to check your policy to understand what damages are covered and at what limits.
Yes. Not all claims are approved. There are many factors such as the size of the damage, the ability of an adjuster to assess the validity of the claim, and the amounts covered in your policy that can affect your claims.
It’s best to keep an inventory of your home possessions so that you can better assess damage. Also, be mindful of your deductible and if a claim is even warranted. Talk to your broker and keep a record of your interactions with an insurance adjuster.
Yes. It’s your home and you can choose the people you trust to build it back should that be necessary. Your insurance provider can provide a list of recommendations from their own networks of preferred contractors.
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