What to do if your home insurance claim is denied

KEY TAKEAWAYS

• Home insurance claims are rising in Canada. Severe weather events caused over $2.4 billion in insured damage in 2025.
• Common reasons for claim denials include: uncovered damages, claims below deductibles, lack of maintenance, or missing documentation.
• A denial isn’t always final. You can appeal by reviewing your denial letter, gathering evidence, and following the insurer’s complaint process.
• Prevent future denials by: reviewing your coverage, keeping maintenance records, and documenting damage promptly.

Discovering damage to your home is stressful enough. Finding out your insurance claim has been denied can make a hard situation even harder.

Home insurance claims are becoming more common as severe weather events increase across Canada. According to the Insurance Bureau of Canada, insured damage from severe weather reached more than $2.4 billion in 2025, making it the tenth costliest year on record for weather-related losses in the country.

The year before was even more expensive. In 2024, insured losses from severe weather surpassed $9 billion, the highest annual total ever recorded in Canada.

With more floods, wildfires, hailstorms, and windstorms damaging homes, more homeowners are turning to insurance to help cover repairs. Unfortunately, not every claim is approved.

The good news is that a denial is not always the final answer. If your claim has been denied, there are steps you can take to understand the decision and possibly challenge it. Here’s what to do if your home insurance claim is denied.

Why home insurance claims get denied in Canada

Your insurer must explain why your claim was rejected. This information will usually appear in a written denial letter. Common reasons for denied home insurance claims include:

1. The damage is not covered under your policy

   Home insurance does not cover every type of loss. For example, many standard policies exclude:

   • Overland flooding unless you have added flood coverage
   • Sewer backup unless it is included as an endorsement
   • Earthquake damage unless you have purchased earthquake coverage

2. The claim falls below your deductible

   If repair costs are lower than your deductible, the insurer will not pay out. For example, if your deductible is $1,000 and the damage costs $800 to repair, the claim would likely be denied.

   Read more: How raising your deductibles can help you save on home insurance

3. Lack of maintenance

   Insurance is designed to cover sudden and accidental damage, not gradual problems caused by wear and tear or neglect. The Insurance Bureau of Canada notes that insurance policies generally protect against unexpected events rather than predictable maintenance issues.

   Insurance companies may deny claims if they believe the damage happened because the home was not properly maintained.

   For example, if a roof leaks because it has not been maintained for years, or mold develops because of ongoing moisture problems, your insurer may argue that the damage was preventable.

   Read more: The price of insuring an old roof - if it's even insurable

4. Missing information or documentation

   Claims sometimes stall or get denied when the insurer does not have enough information to verify the loss. Photos, receipts, repair estimates, and inspection reports can all play a role in whether or not your claim is approved or denied.

How to review your home insurance claim denial letter

Before taking any action, read the denial letter closely. Look for details such as:

• The exact reason the claim was denied
• The section of the policy used to justify the decision
• Any documentation the insurer relied on

If something is unclear, ask your insurer to explain the decision in plain language. It can also help to review your policy documents. Pay close attention to any wording on:

• Coverage limits
• Exclusions
• Endorsements or add-ons
• Your deductible

Sometimes a denial is based on a misunderstanding about the cause of the damage or the coverage that applies.

Read next: When to file and not file a home insurance claim

What evidence to gather after a home insurance claim is denied

If you believe the denial was incorrect, start collecting information that supports your case. Helpful documents may include:

• Photos or videos of the damage
• Repair estimates from licensed contractors
• Inspection reports
• Maintenance records
• Receipts for damaged items

For example, if your insurer claims your roof leak was caused by poor maintenance, proof of recent roof repairs or inspections could help strengthen your case. The more documentation you have, the easier it may be to challenge the decision.

Learn more: How much home insurance coverage do you actually need?

What to do after your home insurance claim is denied

Your first step after being denied for a home insurance claim should be to speak with your insurer. Contact your claims representative and ask them to review the decision with you. Sometimes claims are reconsidered after providing more information or clarifying the cause of the damage.

If you work with an insurance broker, they can often help advocate on your behalf. Brokers understand policy wording and may help explain where coverage should apply. In some cases, the insurer may reconsider the claim after reviewing additional details.

How to appeal a denied home insurance claim in Canada

If the issue is not resolved, you can move to the insurer’s official complaint or appeals process. All licensed Canadian insurers have a structured system for reviewing disputes. This may involve:

• Lodging a written complaint with the company
• Having the claim reviewed by a claims manager or internal dispute resolution team
• Escalating the issue to the insurer’s ombudsperson

The denial letter or the insurer’s website should explain how to start this process.

When to contact the General Insurance OmbudService (GIO)

If you’ve done the above and still believe your claim was unfairly denied, you can escalate the complaint outside the insurance company. The General Insurance OmbudService (GIO) helps resolve disputes with insurers.

The GIO provides free, independent dispute resolution services for home, auto, and business insurance complaints. They do not act as a court, but they can review the situation and help both sides reach a fair resolution.

If your dispute is not resolved by GIO or if your insurer is not a member, you can also reach out to a Superintendent of Insurance in your province or territory. In some cases, homeowners may also seek legal advice if the dispute involves a large claim or complex policy wording.

How to avoid home insurance claim denials 

While not every claim can be accepted, there are steps homeowners can take to reduce the risk of being denied:

• Review your coverage to understand what you’re missing
• Keep records of maintenance
• Document damage quickly

Read next: Navigating home insurance: By-law coverage

What homeowners should know about denied insurance claims

A denied home insurance claim can feel overwhelming, especially when you are already dealing with damage or loss to your home.

But a denial does not always mean the case is fully closed. By reviewing the decision, gathering documentation, and following the appeals process, homeowners may be able to challenge the outcome.

If you are unsure how to proceed, speaking with a licensed insurance broker can help. They can explain your coverage, review your options, and help you navigate the next steps.

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