Home Insurance Claims
Many homeowners in the GTA and surrounding areas have recently been hit with record rainfalls and are experiencing water damage to varying degrees, from minor low-cost damages and loss to major expensive damages and loss.
Ideally, you’ll never have to make a home insurance claim but there are instances where you should consider it. Here’s a brief overview of the process and things to consider when making a claim.
Overview of the Claim Process
You file your paperwork with your insurance company
Your insurance claims adjuster reviews the paperwork and determines if your claim meets the criteria for your insurance policy to cover the work
If approved, you pay your deductible, and the work is completed
When to File a Home Insurance Claim
There are many factors that influence whether you should make a home insurance claim, including:
The size of the deductible
The extent of the loss or damage
Whether you can pay for repairs and replacements out of pocket
If the repairs are minor and inexpensive, it may make sense to pay out of pocket, particularly if your deductible is high. If the repairs are extensive and expensive, you will likely want to proceed with an insurance claim.
Before Making a Claim
Move yourself and your family away from your home if there’s any danger present
Mitigate damage to the extent possible (i.e., move items away from the source of damage, get emergency repairs done)
Take as many pictures of the damage as possible
List all of the items and property that were damaged or destroyed
Water Damage
When there’s basement flooding no danger to you and your family, move as many items out of the path of water as you can
Contact your insurer to see if they have a preferred service provider
You can often recommend your own provider that you have worked with and/or know is reputable and the insurance provider will allow you to proceed with this provider
Keep any items that may have caused damage as this may be a factor in the approval of your claim
How Claims Work and Timing
Once you file a claim, a claims adjuster working for the insurance company that provides your home insurance policy will begin to assess your claim. During the claim process, they may contact you with questions or information and may visit your home to assess the damage.
The home insurance claim process can take some time depending on the following:
The complexity of the home insurance claim
The extent of the damage
The amount of documentation available for the home insurance claim
The number of other claims your insurance company is processing during the period when you make your claim
Finalizing your home insurance claim may take weeks or even months though in the best-case scenarios, it may only take a matter of days
Home Insurance Claims Process
1. Opening Your Claim
Call your insurance company directly to file a claim
Have paperwork, pictures, and any other documentation ready when you phone in to file a claim
2. Your insurance company will do the following:
Take a statement from you about the claim you’re making
Check your insurance coverage to see if the claim is eligible
Refer you to a recommended service provider for repairs (or you can often recommend one)
Tell you which documents to send them
Tell you which documents they may send you
Tell you your deductible
Give you a claims number to track your claim
Assessing the Damage
Building Damage: The cost for building damage (repairs or replacement) will be assessed by one of your insurance company’s recommended service providers. Should you disagree with the amount assessed, you can contact an alternative provider for an estimate and compare those estimates with the one provided by your insurer’s recommended service provider.
Personal Property Damage: You’ll send your insurer documentation proving that you owned the property you’re claiming for (pictures, receipts, credit card statements). Keep an updated inventory of all the items you own to simplify this process.
Repairs or Settlement Proposal
Building Damage: When possible, your insurance company will repair or replace buildings using their recommended service provider or one you recommended and pay them on your behalf.
Personal Property Damage: Your insurer will contact you to propose a settlement for property that’s been damaged or destroyed. Depending on the terms of your policy, they may offer amounts based on the replacement cost or the actual cash value of the items that were damaged.
Payment
Payment can occur in several ways. Your insurer may pay you directly to cover costs (such as in the case of personal property damage), or they may pay the service providers you’ve used to repair or replace your buildings (in the case of building damage). Alternatively, both repair costs and replacement costs may be covered directly by the insurance provider.
