As a homeowner, you might not want to think about the possibility of a fire, flood, or theft. But these things can and do happen.
With a home insurance plan in place, you can file a claim and recoup your losses, financially speaking, so you’re not left in financial ruin following a disaster.
But how do home insurance claims work?
How To File A Home Insurance Claim In Canada
If you’ve experienced a fire, flooding or some other event that has affected your property, then you can file a home insurance claim to cover the damages. To start a home insurance claim, follow these steps:
Step 1. Gather Proof
The more evidence you can provide your insurance provider, the better. When filing a claim, do your best to collect and submit various documents, including the following:
- List of all damaged or stolen items
- Photos of all damaged or stolen items
- Receipts
- Police reports
- Warranties
Step 2. Call Your Insurer
Once you have everything you need to file a claim, contact your insurance provider right away. After filing your claim, an adjuster will reach out to you shortly after to go over all the details of the circumstances surrounding your claim.
At this point, you can supply all the documents you’ve collected to help support your claim.
If you’re home is too damaged to live in, be sure to ask your insurer if you have coverage for Additional Living Expenses (ALE).
Step 3. File A Proof Of Loss
Your insurance provider will likely ask you to fill out a “proof of loss” form, which outlines all the items that have been damaged or stolen, along with the value of each item. You’ll have roughly 30 days to complete this form and hand it to your insurer.
Make sure that all information provided is accurate and honest, as any discrepancies could negatively affect your claim and ultimate payout.
What Happens When You Make A Home Insurance Claim?
Once you file a home insurance claim, a claims adjuster will visit your home to conduct an inspection. Any documentation you haven’t already provided will be asked for during this inspection.
Once the claims adjuster assesses the damage and your claim is approved, they’ll determine the amount of money you’re eligible for to cover your losses. The amount you’ll be given will be based on the current cash value of the items.
How Will Your Home Insurance Claim Be Paid Out?
You’ll be paid out via cheque or electronic funds transfer. However, if your home is still being financed, your lender may need to be included in the payment.
Be sure to find out how payment for repairs will be dealt with. For instance, your lender may insist on approving contractors or inspecting repairs before the money is released. Similarly, depending on the contractor chosen, payment may be directly sent to them instead of you.
Will An Insurance Claim Affect My Premiums?
Your premium may be affected by a claim, but the extent of the impact will depend on whether or not you’ve ever filed a claim in the past. A history of multiple claims, especially within a short period, could bump up your premiums quite a bit, as your insurance provider may classify you as a risky client.
But if this is your first claim, the effect may not be as harsh. Some insurance providers even have a first-claim forgiveness feature, in which case your premiums won’t be affected.
When To Make An Insurance Claim
An insurance claim should be made within 24 hours following the incident, but you may be able to take up to seven days to file a claim. It’s important that you reach out immediately, as insurance companies may not honour your claim if you wait too long. Most insurance companies have a 24-hour claims service, so there’s no need to wait to get the claims process started.
Can My Home Insurance Claim Be Denied?
It’s possible for your insurance provider to deny your claim. The following are some common reasons why claims may not be accepted:
- Not enough coverage. Your policy may lack the coverage needed to support your specific claim. Or, you may be filing a claim for an uninsured peril that’s not included in your policy, such as flooding.
- Inadequate proof. You may not have enough evidence to back your claim.
- Negligence. You need to keep your home maintained to some degree to ensure that it’s not vulnerable to damage. For instance, a poorly maintained roof may be more susceptible to damage. In this case, your claim could be denied.
- Intentional damage. If you caused the damage on purpose, your insurance provider will not cover you.
Final Thoughts
Paying insurance premiums every month may seem like a nuisance, but all those payouts may be worth it if you find yourself with a hefty bill to cover the cost of damages or loss. Just make sure you get the process started right away and collect as much evidence as you can to support your claim.
